FAQs: How will an asset test hurt Pennsylvians?
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Q: What is an asset test?
A: An asset test requires families to have less than $5,500 in assets ($9,000 for households with seniors or people with disabilities) to qualify for food stamps, which is now called SNAP. If a person owns a car, that vehicle would be exempt, but any additional vehicle worth more than $4,650 would count as an asset. Recognizing the devastating effects of an asset test, 36 states and the District of Columbia do not impose an asset test for SNAP. In fact, Pennsylvania eliminated its own asset test in 2008, as the recession took hold and a growing number of families found themselves seeking food assistance for the first time in their lives.
Q: Would an asset test save Pennsylvania money?
A: No. Adding an asset test would cost Pennsylvania taxpayers more money. SNAP benefits are fully funded by the federal government, so no state tax dollars would be saved. The costs for administering food stamps are split between the federal government and the state. By adding an asset test, the state’s administrative costs would actually increase to pay for technological upgrades, additional training and staff time. The Corbett administration has failed to release the projected administrative costs of this added burden on already understaffed County Assistance Offices.
Q: How would an asset test affect the people of Pennsylvania?
A: Thousands of people who receive SNAP benefits could be cut from the program, making it harder for struggling families to get back on their feet. An asset test would especially hurt seniors and people who’ve recently lost their jobs—two groups that are more likely than others to be living off their savings. The Corbett administration has yet to reveal how many people would lose their SNAP Benefits under the asset test.
Q: Why are assets important?
A: Saving money is critical in helping people transition from poverty to self-sufficiency. Forcing a family to drain their savings before receiving help is counterproductive, making it harder for people to move off of government assistance.
Q: How would an asset test affect local businesses and the economy?
A: Pennsylvania could lose tens of millions of dollars each year in federally funded SNAP benefits, which would otherwise be pumped into the state’s economy as food stamps are spent at grocery stores, farmers’ markets and convenience stores. Because every $1 in SNAP benefits generates $1.73 in economic activity, Pennsylvania stands to lose millions more if the asset test is reinstated.
Q: Would an asset test reduce waste, fraud and abuse in the Department of Public Welfare?
No. Pennsylvania currently has one of the lowest SNAP fraud rates in the nation: less than 1 percent, according to the USDA. The planned asset test would place further strain on already understaffed County Assistance Offices, increasing opportunities for errors in processing applications.
Q: How can citizens take action on the proposed asset test?
A: The City of Philadelphia, local supermarkets, small businesses and community organizations have united to urge Gov. Tom Corbett to stop the asset test from being reinstated. Citizens can learn more and how to take action at www.hungercoalition.org.
