When you look at food stamp (now called SNAP) participation rates, California as a state ranks 4th from the bottom. And if you look at the food stamp participation rates of the 24 largest metropolitan areas in the nation, San Diego ranks dead last. This means hungry people don’t eat, but it also means that San Diego county loses $144 million annually. And that’s $144 million in the form of the very best economic stimulus the government can give us – each dollar of food stamps generates about $1.80 in economic activity.

Let’s take a look at San Diego as a case study: Why aren’t San Diegoans getting food stamps? And what can we learn from San Diego that might help us increase the participation rate nationally.

First up, those eligible for food stamps don’t all participate at the same rate. Take a look at this:

Food Stamp Participation in 2003

56% of total eligible population

74% of eligible children

28% of eligible elderly individuals

62% of individuals in households with no earnings

47% of individuals in households with earnings

Source: Sources of Variation in State-Level Food Stamp Participation (PDF)

So when you see the HUGE discrepancy between the 89.5% of eligible food stamp recipients who participated in Missouri in 2003 and the miserably low 29% of those who participate in San Diego, that explains part of what’s going on. If San Diego’s eligible population is made up of demographics that are less likely to participate, then naturally San Diego’s participation rate will be lower as a result.

That explains SOME of the discrepancy but not all. Another possible explanation is that differing state policies make it more or less likely for those eligible to apply or receive food stamps. For example:

• Certification period – How frequently must an applicant reapply (between 3-12 months)
• Reporting requirement – Are applicants required to report any changes in income? (And if so, how frequently?)
• Categorical eligibility – Is any group of people automatically eligible for food stamps if they are eligible for another government program?
• Fingerprinting – Are applicants subject to fingerprinting, which might discourage some from applying?
• Application page length
• Work requirements – Are able bodied adults required to work?
• Number of visits required to apply
• State outreach – Does the state engage in any outreach activities?

I can imagine that if your state makes it a real pain in the butt to apply for food stamps, you might just give up. Especially if you wouldn’t receive very much in benefits anyway. Maybe you’d make that first trip to apply but if subsequent visits were required, they want your fingerprint, and the application’s long, maybe you don’t bother. Or maybe you bother the first time, but three months later when they want you to re-certify, it’s just not worth the hassle.

The USDA crunched the numbers to see if the make-up of the population accounted for the differences in participation rates (it did some, but not too significantly), or if different state policies explained the discrepancies. The answer? Well, they couldn’t find any statistically significant difference in participation rates based on the policies.

However, they also say that they doubt that the variation in participation rates is totally random. And it’s hard to believe that a state that makes its application process difficult and obnoxious wouldn’t have any effect on its participation rate.

The USDA suspects that their inability to account for differences in participation may be due to lack of sufficient data or overly imprecise data, or perhaps similar policies are implemented differently, making statistical comparisons between them impossible. (For example, if two states had an identical policy but implemented it differently. When the USDA does its number crunching these states would be lumped into the same category but in reality food stamp applicants in either state would have very different experiences.) Another possibility is that “aggregate measures may mask meaningful local variations.” Last, perhaps state procedures – how the states actually do what they do – are more important than state policies.

I’m glad the USDA is looking into this, and I hope they can find an answer that explains why 70% of those eligible for food stamps in San Diego do not receive them.

Participation Rate (%) by State (2003)

Missouri 89.5

Oregon 85.7

Tennessee 83.1

Hawaii 79.1

DC 74.3

Oklahoma 73.0

Maine 69.9

Kentucky 68.9

Mississippi 67.9

Georgia 67.5

Louisiana 66.2

South Carolina 65.9

Ohio 65.2

Michigan 65.1

Arizona 65.0

West Virginia 64.9

Indiana 63.6

Minnesota 63.1

Alaska 61.5

Vermont 60.8

Illinois 60.6

Nebraska 60.5

Arkansas 60.1

North Dakota 57.8

Iowa 57.2

Delaware 54.8

South Dakota 54.3

Idaho 54.2

Alabama 54.1

Pennsylvania 54.0

Connecticut 53.8

Wisconsin 53.3

Kansas 53.0

New Mexico 53.0

Rhode Island 51.9

Virginia 51.5

Washington 51.4

Utah 50.9

New York 50.2

New Hampshire 49.7

Wyoming 49.2

Florida 48.9

New Jersey 48.7

Maryland 48.1

Texas 47.4

Colorado 45.5

North Carolina 45.4

California 45.3

Montana 44.6

Nevada 41.0

Massachusetts 40.1