State's food stamp cash-out policy no longer the best option for many aid recipients

According to an analysis by the California Department of Social Services, about 307,000 households that rely solely on Supplemental Security Income would become eligible for $16 to $69 a month in food stamps, if allowed to apply. But John Wagner, director of the California Department of Social Services, cautioned there would be "winners and losers" if the state reverses its decision to cash out food stamps.

Currently, households that include members who are not receiving Supplemental Security Income may apply for food stamps without the aid recipient's income counting against the rest of the family's eligibility or benefit levels. This would change if California allows Supplemental Security Income recipients to apply for food stamps.

About 495,000 households would see no change in benefits, according to the analysis. About 55,000 would see their food stamp allotment increase by an average of $15 a month. But about 64,000 would face a reduction in benefits. And an additional 35,000 would no longer qualify for food stamps — a loss amounting to an average $209 a month.

Maria Arroyo, a single mother of two from San Diego, is among those whose benefits could be affected.

Arroyo, 47, struggles to make ends meet on $345 a month in cash aid for needy families and $734 a month of Supplemental Security Income for her disabled son. She doesn't know how she would manage if she lost the $190 a month in food stamps for which they now qualify. She said it's been hard to hold down a full-time job while caring for a 9-year-old with attention-deficit hyperactivity disorder.

"Before, I had three houses to clean," she said. "But people start to tell me they can't pay me anymore."

Even though some households would become ineligible for food stamps, the Legislative Analyst's Office has recommended that state legislators consider reversing the cash-out, noting that such households already are better off financially than the ones that stand to gain.

Reversing the policy would increase participation in the food stamp program, which is among the nation's lowest. In 2007, the most recent year for which federal estimates are available, just 48% of eligible Californians were enrolled in the program.

The federal government pays for the food stamp benefit and for half the cost of administering the program; the rest is covered by the state and counties.