Energy Price Spikes: Implications for Food Stamps

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Energy Price SpikesImplications for Food Stamps

• Roger D. Colton
• Fisher, Sheehan Colton
• Public Finance and General Economics
• Belmont, MA 02478
• roger_at_fsconline.com
• June 2001

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The Excess Shelter Deduction

• HH Food Stamp benefits based on adjusted income
• Shelter housing plus all utilities (including
  telephone)
• Shelter costs over 50 of income deducted from
  household income for FS purposes

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Why do it?

• 30 - 40/month for low-income HHs
• Dollar-for-dollar passthrough to feds
• USDA supports and encourages
• Elderly/disabled have no maximum
• 250,000,000

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Calculating the electric SUA

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

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Calculating the heating SUA

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

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What needs to be done?

• Update the SUA annually
• Ensure HHs are reassessed

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For more information

• roger_at_fsconline.com