Friday, July 30, 2010

Butte County Ignores 85 Million Dollar Stimulus Program

In a time of economic decline Butte County, and City Governments ignore over 30 million dollars readily available to our county in a single Federal Program that would directly bolster economic activity and tax revenue windfalls for our hurting community to the tune of over 85 million per year. That averages to an economic loss to every single man, woman, and child in Butte County of $400 each/year. (How much does your family lose?). Each month of economic decline the amount of untapped available monies grows!

Imagine local and state government bodies ignoring a recurring annual 30 million dollar road improvement project expected to add  over 55 million a year in economic activities.  What would the political fallout for ignoring that potent economic stimulus and infrastructure development be?

What is this single ignored windfall?

It is the FNS Supplemental Nutrition Assistance Program (SNAP): In California those monies are administered by the California Nutrition & Activities Promotion Program.

Why is so underutilized?

Do politicians and Government Administrators hate poor people?

Whatever it is, it is endemic to the State. And to demonstrate that hate or ignorance California Policy Wonks turn their backs on almost 4 BILLION dollars a year in readily available Federal Monies expected to stimulate 6.8 billion in additional economic activities. (Direct Fed Monies - State wide: $3,744,000,000 ; Butte Co = $30.4 million Tehama = $23.8 million / year; Glenn = $8.6 million / year; Shasta = $59.8 million / year; Colusa = $4.4 million / year; Siskiyou = $15.3 million / year)

How do they ignore this basic health maintenance program for people with low income? What are the added health cost strain placed on our health care system?

California and Wyoming are the only 2 states in the U.S. with participation rates lower than  50%. It’s estimated that 3 million Californians are eligible but not participating in the FSP.

California is the only state in the nation that requires income verification every 3 months instead of every 6 months – doubling the paperwork and workload of nutrition program case management. California continues the 3 month requirement even after being encouraged  to discontinue the practice by California Food Policy Advocates and 80 different community groups.


"California is also at the bottom of states in another important measure: administrative costs per case.  According to USDA’s State Operations Report, no other state comes even close to spending as much per food stamp case as California does. "

California is one of only 3 states to require fingerprinting, and the USDA has asked them to stop that practice.

An estimated 24,000 or more Butte County residents are eligible, but not participating in the Food Stamp Program.  That makes 30 and a half million dollars a year in Federal funds lost in Butte County alone due to under participation. 

But that is not all. For every Food Stamp $1.00, an additional $1.84 is generated in other spending. Equals $4,674,350 a month of lost economic activity.  That is $56,092,200.00 per year for Butte County – plus the 30.5 million from the SNAP program. Do the math; over 85 million in economic stimulus in little old Butte County alone – ignored.



Furthermore, money spent at Certified Farmers Markets more than doubles the money recycled in the community over those food dollars spend in large grocery outlets - potentially adding another $2.5 million a month to the local economy. This is a result of what is called the "Fiscal Multiplier".


The Leopold Center study comparing local to non-local food prices found a Farmers Market savings of over 10% compared to Supermarket prices for the same items.

Why are the policy makers and shakers turning their attention elsewhere? It seems their backs are everywhere. Take the Enloe and Oroville Hospital's Farmers Markets as an example: For 2 or 3 years good folks within these organizations have been trying to become EBT enabled at their seasonal markets.

In spite of the history, experience, and size of their public service operations - we have been stymied in our efforts by the requirements of the USDA Food & Nutrition Services which is set up for grocery stores and convenience stores  and inappropriate to the realities of charitable health organizations - demands the release and documentation of personal information of their volunteer Board of Directors.

That is to say that powerful established social service organizations have been blocked for providing essential nutritional services by the organization that administers the EBT Farmers Market program.

No other program would more answer the impoverishing impact of Trickle Down. No program more demonstrate the benefit of a grass roots, bottom up, economic recovery and health maintenance programs.

While California's economy crashes around them and legislators haggle over hacks  to the safety nets of those disabled middle or low income folks, California's Federally Funded Food Stamp program sits there like a blushing bride waiting at the alter with a bouquet of fresh cut flowers.

What we need is a concerted effort by all elected and local government agencies and the organizations they support – including economic development organizations - to advertise, promote and facilitate full enrollment in the California Nutrition & Activities Promotion Program. This needs to be a major community effort that includes schools, churches, youth programs, business and service organizations.

Leave no eligible SNAP participant behind!

The result will be improved health, improved economies, and brighter futures. The time is urgent and now.