Energy Price Spikes: Implications for Food Stamps Roger D. Colton Fisher, Sheehan & Colton Public Finance and General Economics Belmont, MA 02478

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Presentation transcript:

Energy Price Spikes: Implications for Food Stamps Roger D. Colton Fisher, Sheehan & Colton Public Finance and General Economics Belmont, MA June 2001

The Excess Shelter Deduction b HH Food Stamp benefits based on adjusted income b Shelter = housing plus all utilities (including telephone) b Shelter costs over 50% of income deducted from household income for FS purposes

Why do it? b $30 - $40/month for low-income HHs b Dollar-for-dollar passthrough to feds b USDA supports and encourages b Elderly/disabled have no maximum b $250,000,000

Calculating the electric SUA b Obtain existing non-heating SUA b Calculate typical electric consumption b Determine “old” and “new” electric prices b Determine bills at old and new prices b Change SUA based on change in bill: Old SUA x (New Bill/Old Bill)

Calculating the heating SUA b Existing SUA (date last modified) b Mix of home heating fuels in state b Weighted percentage increase in heating costs (oil + gas + electric +propane) b Multiply times existing heating SUA: Old SUA x (new bill / old bill)

What needs to be done? b Update the SUA annually b Ensure HHs are reassessed

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