This letter transmits changes that will be effective May 1, 2009. If no revisions are made to the proposed rule prior to the finalization by JCARR, it will become effective on a permanent basis on May 1, 2009. If changes are necessary, a copy of the revised rule will be forwarded to you at that time.

Background

Federal law permits states to implement the option to use the mandatory standard utility allowance instead of actual utility expenses in food assistance budgets when determining eligibility and benefit allotments. Ohio has decided to implement this option for a number of reasons: ease of administration for county departments of job and family services, improving program access by reducing the need for utility verification for food assistance families, and to improve the state's food assistance payment accuracy rate.

Using the mandatory standard utility allowance means that states no longer have to consider or verify actual expenses; they must only verify that a utility expense exists and is incurred. States must have in place a standard for heating and cooling expenses, as well as one or more standards for expenses that do not include heating and cooling. As a result, every assistance group that incurs a utility expense will receive an allowance, instead of claiming actual expenses. Moving to the mandatory standard utility allowance eliminates the need to prorate the allowance; if families share expenses, each family will be entitled to the full allowance. Additionally, the allowance will be available to those who reside in public housing who have excess heating or cooling costs.

In 2008, the Ohio Department of Job and Family Services (ODJFS) Office of Family Stability conducted regional focus group sessions with county departments of job and family services to evaluate the need for improvements in the food assistance program.

One of the recommendations from the focus groups was to implement the mandatory standard utility allowance. Also, since July 2008, the Office of Family Stability has been working with the Rushmore Group to identify ways to improve Ohio's food assistance payment accuracy rate. One of the key recommendations from the Rushmore Group was to implement the mandatory standard utility allowance.

From October 2007 through September 2008, 3,365 food assistance cases were reviewed by ODJFS for payment accuracy. Of these reviews twenty contained an error pertaining to the application of the current standard utility allowance. The errors found in these cases represented 6.92% of the payment accuracy error rate dollars for the time period. An additional eighteen reviews contained the standard utility allowance as a contributing factor to the error. These eighteen cases represent an additional 3.37% of the total dollars found in error for the time period. The most frequent cause of errors was related to proration of the standard utility allowance or incorrectly using or not using the standard utility allowance in the budget.

Current Policy

The food assistance program budget currently provides for one standard utility allowance that is available to households who incur heating and/or cooling expenses separately from their rent or mortgage. This standard utility allowance is not available to households in public housing units which have central utility meters and are charged only for excess heating or cooling costs. The standard utility allowance must be prorated among households living at one residence and sharing utility costs that include heating and/or cooling costs. Households eligible for the standard utility allowance have the option of claiming actual utility costs or the standard utility allowance. Those not eligible for the standard utility allowance but otherwise incur expenses may be able to claim actual utility costs for other qualifying utilities.

New Policy

One of four possible utility allowances will be available to an assistance group that incurs utility expenses:

1.Standard Utility Allowance - to an assistance group incurring heating or cooling costs.

2.Limited Utility Allowance - to an assistance group incurring 2 or more utility expenses neither of which are heating or cooling costs. A telephone expense will count as one of the utility expenses.

3.Single Standard Utility Allowance - to an assistance group incurring one utility expense which is not a heating or cooling expense or a telephone expense.

4.Telephone Allowance - given to any assistance group incurring only a telephone expense.

We submitted the figures to be used for each of the utility allowances to the United States Department of Agriculture Food and Nutrition Service for approval. We obtained utility cost information from the Public Utilities Commission of Ohio and through a telephone survey of utility providers. Ohio will use the current standard utility allowance of $586 and the current telephone allowance of $31 that were established for October 2008 through September 2009. In addition, we will use a limited utility allowance of $287 and a single standard utility allowance of $64. These figures will be provided to county departments of job and family services annually via a Food Assistance Change Transmittal and announced with a CRIS-E view flash bulletin.

The following is a summary of the changes to the rule.

5101:4-4-23Food assistance deductions from income

This rule is being updated to add the language for the limited utility allowance and single standard utility allowance. The standard utility allowance and telephone allowance will not change. We have also removed the language allowing the use of actual utility costs and the information about who is not entitled to a standard utility allowance. The mandatory standard utility allowance does not change the policy that to qualify for the utility allowance, the utility expense only needs to be incurred by the assistance group; the assistance group does not have to have a bill from a utility company but may be billed separately when costs are shared or are owed to a landlord.

We have also removed from the rule the amounts for the standard deduction, the excess shelter deduction, and the standard utility allowance because these amounts change every year. The figures for these deductions and allowances will be announced every year by the issuance of a Food Assistance Change Transmittal and a CRIS-E view flash bulletin once they are updated.

Refile Clarifications

This rule was refiled two times to add language to paragraphs (B), (E) and (F) to inform readers where the food assistance change transmittal can be found. Reference to the Food and Nutrition Act of 2008 was also added to paragraph (B). Language was also added to paragraph (F) (1) to clarify the costs included in the standard utility allowance. Paragraph (F)(1)(i) was added to clarify that if an assistance group lives with another individual, another assistance group or both and share costs covered under the definition of standard utility allowance, and if one assistance group incurs a heating or cooling cost, all assistance groups are entitled to the full standard utility allowance.

Appendix A to 5101:4-4-23

Because the amounts for the standard deduction, the excess shelter deduction, and the standard utility allowance will not be included in the rule but will be announced in Food Assistance Change Transmittals on an annual basis as the numbers are updated, Appendix A is no longer needed and is being removed from the rule.

Water/Sewer Utilities Only

The CRIS-E Helpdesk will be sending a report the week of March 30, 2009 for the cases which only contain a water/sewer expense. Currently a worker would put a water/sewer expense under "WS" on AEFUC. Under the new policy if an applicant is only paying water and sewer they would be eligible for the limited utility allowance. As of May 1, 2009, water expenses should be noted under "WS" and sewer expenses should be recorded under "other" so the system will apply the appropriate utility allowance.

CRIS-E

Mass change will be run prior to the effective date. All applications and reapplications being processed for May 1, 2009 and after shall have the new amounts applied. CRIS-E tables will be updated with the new standard amounts. Alerts will be generated for all cases for which CRIS-E cannot update automatically and the caseworker will be required to run ED/BC for these cases to implement the utility allowance change. Notice requirements are found in OAC rule 5101:4-7-03 (A). Instructions will also be issued via a CRIS-E view flash bulletin.

Instructions: