The Weekly Food Research and Action Center News Digest highlights what's new on hunger, nutrition and poverty issues at FRAC, at the U.S. Department of Agriculture, around the network of national, state and local anti-poverty and anti-hunger organizations, and in the media. The Digest will alert you to trends, reports, news items and resources and, when available, link you directly to them.

1. Updated Reimbursement Rates Now Available
(Federal Register, July 7, 2008)

USDA issued updated income guidelines and reimbursement rates (pdf) for child nutrition programs (including school meals, afterschool and summer food programs, and day care nutrition programs). The rates are in effect July 1, 2008 to June 30, 2009. Follow these links for the Federal Register notices on:

* School Meals Rates (pdf)
* CACFP Rates (pdf)
* Food Distribution Program Rates (pdf) (Commodities - "Value of Donated Foods")

2. New Fiscal Year Finds State Budgets Foundering
(The New York Times, July 1, 2008)

Falling or flat-lined state tax revenues, high inflation and the economic downturn have created "yawning budget gaps" as states move into the new fiscal year. Revenue decline across the country "dims prospects for states in the near future," according to a report by the Nelson A. Rockefeller Institute of Government in Albany. The organization found that state tax revenues dropped 5.3 percent in 2008's first quarter, the third quarter in a row seeing revenues dropping, with the first quarter being the weakest since early 2003. Critical state tax revenues have been flat for the first time in six years; corporate taxes fell 5.1 percent between January and March. And while personal income taxes rose 4.4 percent nationwide, they fell in 12 states. Widespread economic weakness "is presumably a harbinger of budget problems," according to Don Boyd, senior fellow at the Rockefeller Institute. State legislature budget battles have spelled potential problems for social services and education programs, especially in California and other states hit hard by the mortgage crisis. California is facing a $17 billion shortfall; Nevada is calling for budget cuts; Arizona is dealing with a $2.2 billion gap; and southeastern states are feeling "a tremendous pinch." Part of the problem that makes this time unique is the heavy reliance by states on sales tax revenues, which are suffering from housing market issues. Hit hardest in this instance are Florida and Tennessee, which have no personal income tax and rely heavily on sales tax revenues.

3. Poor Need Temporary Food Stamp Increase
(Boston Globe, June 29, 2008)

Food stamp recipients in Massachusetts receive an average monthly allocation of $181.30, which buys less food now due to rapidly rising food costs. This editorial supports IL Congressman Jesse Jackson, Jr.'s call for a temporary 20 percent increase in food stamp benefits, before this fall's inflation-based increase. The state has seen a 10 percent increase in food stamp use between March 2007 and 2008; recipients are having a hard time paying for food staples, as milk prices increased 10.2 percent since May 2007. Children are particularly vulnerable during this time of economic hardship, and doctors at Boston Medical Center say they're seeing stunted growth in very young, undernourished children. Experts are concerned about the amount of nutritious food needy children are getting. Without it, children can develop illnesses, emotional problems, and developmental delays.

4. Food Stamp Bonus May Save Caseworker Jobs
(Huntsville Times, July 3, 2008)

A $1.7 million dollar food stamp bonus awarded to Alabama by USDA for having one of the best-run programs in the country could save jobs in the state's Department of Human Resources (DHR) offices. Food stamp case workers in the 23-employee Madison County office are covering 500 cases each, which doesn't include the 52 percent of residents eligible but not receiving the benefit. Drenda King, Madison County office director, said the economic slowdown meant possible job cuts, in spite of the fact that "In July 2007, the (federal government) told us we were serving 48 percent of those in poverty…If we don't have enough people to take applications, people will not get their food stamps."

5. Some New York Needy to Receive Food Stamp Increase
(The New York Times July 2, 2008)

New York City residents enrolled in the federal home-energy subsidy program will be eligible to receive an average of $131 monthly in additional food stamp benefits. The increase in benefits is allowable through the energy subsidy program. Approximately 114,000 households will be enrolled in that program in order to receive the additional food stamp support. Across the state, about 24,000 households will receive an average of $72 per month in additional food stamps. In a written statement, Governor Paterson said "Rising food and commodities prices area affecting all New Yorkers. Increasing food stamp benefits for some of our state's most vulnerable residents will truly make a difference in their lives and help them to better meet their families' nutritional needs." Other states that have taken similar measures to increase food stamp allocations are Massachusetts, Vermont, Maine and Washington.

6. Food Stamp Recipients Increase Yet Still Battle High Food Prices
(Hartford Courant, July 2, 2008)

Connecticut food stamp applications rose from 9,714 in April 2007 to 11, 477 in April 2008, with the number of households receiving the benefit going from 104,376 to 112,616 during the same period. However, the price of food making up a minimally nutritious diet increased 7.2 percent over the past year, forcing recipients to buy out-of-date sale items and substitute canned foods for fresh. Recipients are also finding it difficult to afford staples, like milk and dairy products which have risen in price 10 percent, and eggs which are up 20 percent.

7. National News Visits Chicago Store to Talk with Food Stamp Shoppers
(Uptown Update, July 1, 2008)

CBS Evening News visited Chicago's "One-Stop" supermarket at the first of the month recently, finding the store packed with people and checkout lines "thirty people deep." The shoppers were looking for bargains, having just received their monthly allotment of food stamps, which Illinois adds automatically at midnight on the first of each month. These food stamp recipients ran short of food funds quicker than usual in the previous month, due to high inflation, and converge on the supermarket.

8. Nevada Welfare Office Makes Budget Cuts During Rising Food Stamp Application Numbers
(Nevada Appeal, June 26, 2008)

A rise in the state's unemployment figures to a 14-year high combined with the bleak economy as well as high food and fuel prices have meant higher food stamp and TANF assistance applications in Nevada. Nancy Ford, administrator of the state's Division of Welfare and Supportive Services said her office is setting records for applications. "We have a lot more stress on the system," she noted. "All our caseloads are higher." Experts forecast the numbers to continue rising, although the state required the office to reduce its budget by 4.5 percent. In the past, welfare numbers weren't a true indicator of the economy, but they are now as the economy slumps further and families are hit by the multiple problems of inflation, unemployment, and skyrocketing consumer costs. The "Dickensian" state budget cuts in the welfare office do much more harm than cuts to other agencies. "We're the ones who can really help people get through the hard times," said Ford. "One of the difficulties in my division is that the main place where I'm able to provide some savings is by cutting staff. But I'm in a growth industry. When the economy goes south, that puts more stress on the system."

9. Kosher Food Banks Struggling To Provide Help to Needy
(Jewish Federation of the Berkshires, July 3, 2008)

Jewish agencies across the country that provide emergency food services are struggling to help the needy through this time of high unemployment rates, food costs, and fuel costs. Heather Wolfson, spokeswoman for Mazon: A Jewish Response to Hunger, gave the big picture, stating "…the entire country's food bank system is facing a crisis, and it is directly affecting all of the emergency food providers throughout the country." In Michigan, which has the nation's highest unemployment rate (7.4 percent), Leah Lugar of the Yad Ezra kosher food bank serves 1,400 families each month - up from 1,000 two years ago. The kosher food bank started in order to feed the influx of poor Jewish immigrants from the former Soviet Union, but now sees "younger, working-age Jews" struggling through job losses and other economic hardships. New York's Metropolitan Council on Jewish Poverty, "…has seen a steady increase in middle class clients in the past three or four months" according to Executive Director William Rapfogel, which adds to the 15,000 families the group already serves. Food stamp recipients are also being hit by the high cost of food. FRAC's Ellen Vollinger noted "For a household of four that would have been getting the max allotment, by January they were already finding they were falling $30 short per month." William Daroff, the Washington office director of the United Jewish Communities federation umbrella group, hopes that the current crisis will spur action from government officials and bring more help to the nation's hungry.

10. WIC Numbers Rise During Sluggish Economy
(Idaho Statesman, July 1, 2008)

Idaho is seeing an increase in WIC applications due to the current economic woes. "We've just been swamped here in the last several months," said Karen Martz, WIC manager for the state's Central District Health Department. More mothers and their young children will be eligible for the program, as beginning in July, the income limit for a family of four will rise to $3,269 monthly. Across the state, WIC participation rose eight percent in one year, going from 38,500 to 42,000. However, the high cost of groceries is making it tougher for WIC recipients to get by. According to Emily Simnitt of the Idaho Department of Health and Welfare, a bag of groceries that cost $49 last year now costs $55.

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