Wednesday, April 18, 2012

GOP to Slash Food Stamps, Part of Effort to Sustain Future Military Spending

GOP to Slash Food Stamps, Part of Effort to Sustain Future Military Spending

 

Republicans to Slash Food Stamps

 

by David Rogers

 

Politico

April 16, 2012

 

http://www.politico.com/news/stories/0412/75190.html

 

From food stamps to child tax credits and Social Service

block grants, House Republicans began rolling out a new wave

of domestic budget cuts Monday but less for debt reduction -

and more to sustain future Pentagon spending without relying

on new taxes.

 

Going into November's election, President Barack Obama's

signature health care and financial market reforms are again

favorite targets. And with as many as six House committees

involved, the whole budget drill can resemble "Casablanca"

with Claude Rains's Captain Renault ordering his men: "Round

up the usual suspects!"

 

But what's more explicit in this round is the real shift of

resources from the domestic side of the ledger to military

spending. Caught in the middle are not just Obama's ideas

but the working poor and long-term unemployed forced for the

first time to rely on programs like food stamps in the

current recession.

 

At one level, the pro-Pentagon, anti-tax stance fits

traditional Republican doctrine. And the whole goal is to

come up with enough savings to forestall automatic spending

cuts that will fall most heavily on the Defense Department

in January.

 

But what's also driving the latest cuts is a newer

narrative, voiced by House Budget Committee Chairman Paul

Ryan (R-Wis.), that the social safety net is at risk of

becoming a "hammock." And even as the unemployment rate has

begun to fall, conservatives are alarmed that the level of

income-related government benefits continues to rise.

 

Nothing better illustrates this perhaps than the renewed

focus on food stamps - now titled SNAP (Supplemental

Nutrition Assistance Program). And the estimated $33.2

billion in 10-year savings there could have an immediate

impact on the farm bill debate and come November, the 2012 elections.

 

An average family of four would face an 11 percent cut in

monthly benefits after Sept. 1 and, even more important,

tighter enforcement of rules would require that households

exhaust most of their liquid assets before qualifying for

help. This hits hardest among the long-term unemployed, who

would be forced off the rolls until they have spent down

their savings to less than $2,000 in many cases.

 

Indeed, food stamp enrollment and costs have exploded since

the financial collapse four years ago, making SNAP a target

for the right - but also a far bigger political issue in

swing states like Florida, Nevada and Ohio.

 

National enrollment reached 46.4 million people in January

2012, a nearly two-thirds increase from the average monthly

participation in fiscal 2008. The annual costs - now running

in excess of $80 billion - have more than doubled in the

same period. And even the most ardent food stamp proponents

will sometimes say SNAP is a program "asked to do too much."

 

The White House deliberately increased monthly benefits in

2009 by about $20 per person as a way to pump stimulus

dollars into the economy. And in this post welfare-reform

crisis, strapped governors have sought to maximize food

stamp dollars as a cheap way to help families without

tapping state funds.

 

The higher costs and visibility - especially as more

businesses advertise that they will honor the electronic

benefit cards introduced in the 1980s - are what's driving

the Republican push.

 

The Recovery Act boost in benefits is already phasing out

and will be gone entirely by November 2013. But the GOP

package now would cut them off this summer, hitting families

Sept. 1, and saving about $5.9 billion in 2012 and 2013.

 

In addition, $26 billion in longer-term savings are

attributed to tougher eligibility rules affecting what

assets a family can retain and the standard deduction

allowed for utility costs. In the second case, conservatives

complain that about 16 states are now abusing the system by

distributing token federal low- income energy assistance in

order to maximize the food stamp benefits allowed their

citizens. But the large savings, $14.3 billion, indicates

the language goes much further than that considered last

fall and would require even genuinely qualified families to

go through more paperwork to keep their benefits.

 

In fact, the severity of the proposed House cuts could be an

overreach for two reasons.

 

First, they are all coming from the House Agriculture

Committee in the context of rich farm subsidies that are

themselves a "hammock" amid record income for producers.

Even in the commodity lobby, there is broad consensus that

the current system of cash payments to growers can no longer

be politically defended. And by not striking more of a

balance, the committee risks real damage to the coalition

that has supported farm and food programs together for decades.

 

Caught most in the middle is Agriculture Chairman Frank

Lucas, who will take up the cuts Wednesday.

 

The Oklahoma Republican has shown a genuine commitment to

reforming the current farm program and last fall drafted a

bipartisan bill that ended direct payments and demanded

fewer cuts from nutrition programs. In interviews with farm

state radio stations - as well as POLITICO - Lucas has never

hidden his skepticism about the budget task at hand. And

Lucas appears to have made a calculated decision to go hard

right, assuming that the budget process will be a partisan

exercise in any case.

 

The affable Oklahoman is clearly gambling that he can move

back to the center later this spring and summer when he

wants to work with Democrats on farm legislation. "We have a

process in place to move forward with a bipartisan farm and

we will do so accordingly," said Tamara Hinton, Luca's press

secretary on the committee. "We expect to announce the next

set of farm bill hearings this week."

 

Inside his committee, he has kept up good ties with

Minnesota Rep. Collin Peterson, the ranking Democrat and

former chairman. And Lucas knows that SNAP cuts of this

scale have been rejected before not just by Democrats but

also by a surprisingly diverse set of Republicans in the Senate.

 

No less than Sen. Marco Rubio (R-Fla.), a hero of the tea

party movement mentioned as a potential vice presidential

nominee, opposed some of the same cuts on a 58-41 Senate

vote last October. And with 29 electoral votes in November,

Florida's experience with food stamps is telling.

 

Hard hit by unemployment, the state has more than doubled

its participation in the program, from 1.45 million persons

in 2008 to 3.29 million this past January. And in the same

period, the dollar value of the benefits received has almost

tripled from $1.78 billion in 2008 to $5.15 billion in

fiscal 2011, ending last September.

 

The White House has estimated that as many as 234,000

Floridians could lose their access to food stamps in the

coming year under the Republican budget plan. At the same

time, Rep. Allen West (R-Fla.) let out a cry recently,

protesting what he saw as a rush by gas stations and

restaurants to cash in on food sales paid for under the program.

 

"This program has expanded well beyond its original intent

and expanded to a far greater percentage of Americans," West

said. "Now we see a growing number of businesses in this

country, including sit-down and fast-food restaurants,

standalone and gas station convenience markets, and even

pharmacies eager to accept SNAP benefits. . This is a highly

disturbing trend."

 

"As more and more Americans rely on handouts from the

government," West added, in what seemed a nod toward Ryan,

"we see how the safety net has become a comfortable hammock."

 

c 2012 POLITICO LLC

 

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