These rules were effective on an emergency basis 10/01/08. If no revisions are made to the proposed rules prior to the finalization by JCARR, the regular filing will become effective on a permanent basis on or about 12/18/08.

Reason for Change

On June 18, 2008 Congress enacted Public Law 110-246, The Food, Conservation, and Energy Act of 2008, otherwise known as the "Farm Bill". The law contains various provisions that affect food stamp eligibility, benefits and program administration. This Food Stamp Transmittal Letter (FSTL) incorporates the changes mandated by the Farm Bill that are associated with the October 1, 2008 annual cost-of-living adjustments.

Previous Policy

The standard utility allowance, standard telephone allowance, excess shelter deduction, maximum monthly allotments, net income standards (100% of poverty), gross income standards (130% of poverty), and separate assistance group standards for elderly and disabled assistance groups only (165% of poverty), are subject to change each October to reflect any cost-of-living adjustment (COLA).

New Policy

Effective October 1, 2008, the following changes are applicable. The significant increase in the standard utility allowance can be attributed to increased natural gas costs during the winter of 2007 - 2008.

Excess Shelter Deduction

$446

Standard Utility Allowance

$586

Standard Telephone Allowance

$31

Homeless Shelter Deduction

$143 (No change)

Standard Deduction

$144 for an AG size of 1-3 persons;

$147 for an AG size of 4 persons; and

$172 for an AG size of 5 persons; and,

$197 for an AG size of 6 or more persons

Dependent Care

A provision of the Farm Bill eliminates the cap on the deduction for dependent care expenses (currently $175 or $200 per month, depending on the dependent's age) is being eliminated. The actual verified dependent care costs are to be utilized in calculating eligibility and benefit levels.

5101:4-1-03 - Food stamps: definitions

The Food Stamp Act of 1977 is renamed the Food and Nutrition Act of 2008. The "minimum benefit" for one and two person assistance groups has been increased from $10 to 8 percent of the minimum allotment of the one-person Thrifty Food Plan. The minimum allotment for the one and two-person assistance groups is now $14.

5101:4-3-31 - Food stamp employment and training (FSET): required hours

Language has been added to allow individuals who are voluntarily participating in Employment and Training to participate more than 120 hours per month or the number of hours based on their benefits divided by the state or federal minimum wage, whichever is higher.

5101:4-3-32 - Food stamp employment and training (FSET): supportive services

The cap on the deduction for dependent care expenses has been removed and the rule changed to allow assistance groups who are eligible for the deduction to deduct the entire verified amount of dependent care expenses when calculating eligibility and benefit levels.

5101:4-4-03 - Food stamps: exempt resources

This rule is being amended to reference rule 5101:4-4-03.3 for the exclusion of all retirement accounts as a countable resource. A chart providing a summary of tax-preferred retirement accounts/plans is attached as a desk aid for your reference.

5101:4-4-03.3 - Food stamps: resources excluded by law

All tax-preferred education accounts (e.g., 529s) and all tax-preferred retirement plans, contracts, or accounts described in sections 401(a), 403(a), 403(b), and 501(c)(18) of the Internal Revenue Code of 1986 and the value of funds in a Federal Thrift Savings Plan account as provided for in 5 U.S.C. 8439 are excluded as resources. The rule also provides for the exclusion of any successor retirement accounts that are exempt from federal taxes.

5101:4-4-11 - Food stamps: income standards

This rule is being amended to reflect the adjustments to the Gross Monthly Income Standards, Net Monthly Income Standards, and the Separate Assistance Group Income Standards for Elderly and Disabled Assistance Groups.

5101:4-4-13 - Food stamps: types of excluded income

The references to the Food Stamp Act of 1977 are being replaced with Food and Nutrition Act of 2008.

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

This rule is being amended to remove the cap on the deduction for dependent care expenses (currently $175 or 200 per month, depending on the dependent's age) and allows assistance groups eligible for the deduction to deduct the entire verified amount of dependent care expenses when calculating eligibility and benefit levels. This rule is also being amended to reflect the updated standard utility allowance, standard telephone allowance, standard deductions, and the excess shelter deduction. The minimum standard deduction for one, two, and three person assistance groups has increased to $144. Paragraph (C)(10) of this rule is being amended to define the reasonable costs of transportation to obtain medical treatment or services as the current federal or state mileage rate, whichever is higher. Currently, the Internal Revenue Service's (IRS) standard business rate of 58.5 cents per mile, rounded up to 59 cents per mile is to be applied. This mileage reimbursement rate is also applicable for self-employment expenses described in rule 5101:4-6-11(B)(4).

5101:4-4-31 - Food stamps: anticipating income

This rule is being amended to remove references to the dependent care cap.

5101:4-5-01 - Food stamps: determining the monthly allotment

Appendix A of this rule is being amended to reflect the new maximum allotment amounts.

Implementation: All applications and reapplications being processed for October 2008 and after shall have the new amounts applied. CRIS-E tables will be updated with the changes effective October 1, 2008. Alerts will be generated for all cases for which CRIS-E cannot update automatically and the eligibility determiner will be required to run ED/BC for these cases to implement these changes. Notice requirements are found in OAC rule 5101:4-7-03 (A). The allotment tables will be available on the Innerweb or may be calculated using the procedure found in paragraph (B) of Appendix A of OAC rule 5101:4-5-01. The elimination of the maximum dependent care deductions is effective October 1, 2008. In cases where the full dependent care costs (that exceeded the maximum allowed) were entered into CRIS-E and CRIS-E calculated the amount of the deduction, CRIS-E will automatically lift the cap and apply the actual dependent care costs during the mass change process.

For cases in which the dependent care costs exceeded the maximum limit and the eligibility worker entered only the maximum limit, CRIS-E cannot automatically adjust the calculation to reflect actual dependent case costs. The eligibility worker must apply the actual verified costs at the time of recertification or when the case is next reviewed, whichever occurs first. If the case file shows that the assistance group had verified dependent care expenses in excess of the cap, the eligibility worker must restore benefits starting with the October 1, 2008 benefit.

Example:

Prior to October 1, 2008, an assistance group reported and verified monthly dependent care costs of $500 per month. If the eligibility worker entered the $500 per month, CRIS-E calculated the maximum allowable amount of the deduction based on the age of the dependent. The October 2008 mass change will lift the dependent care cap and allow $500 in the food stamp calculation. If the eligibility worker entered only the maximum allowed ($175 or $200 per month), the October mass change will not lift the cap and the maximum will continue to be used. When the eligibility worker next processes a change in the case or a recertification is being completed, and the case record shows that the assistance group had previously verified dependent care expenses in excess of the cap, benefits must be restored back to October 1, 2008. In situations where the verified amount of dependent care expenses were less than the cap, CRIS-E mass change will continue to use the amounts entered.

Instructions: This transmittal letter obsoletes FACT No. 31. The FACT was implemented under emergency rule-filing with an effective date of October 1, 2008. Remove it and file as obsolete.