NASHVILLE, Tenn. (WTVF) — Tennessee could soon face millions of dollars in additional costs to operate the Supplemental Nutrition Assistance Program, commonly known as SNAP, under changes approved by Congress.
Nearly 700,000 Tennesseans rely on the food assistance program each month, according to federal data.
WATCH: Tennessee could face millions in new SNAP costs under federal changes, advocates warn
For decades, states and the federal government have split SNAP administrative costs evenly. But under the new rules, states will be responsible for a larger share of those expenses.
"Now states are going to be responsible for 75 percent of the admin costs," said Anna Grace Dastuge with the Tennessee Justice Center.
The Tennessee Fiscal Review Committee estimates the change will cost Tennessee an additional $77 million annually.
"Fortunately, the state has already funded that portion," Dastuge said.
However, she said a separate change concerns her even more.
For the first time, Tennessee could be required to cover a portion of SNAP benefit costs based on the state's payment error rate — something she says is "totally new."
While payment errors do not necessarily indicate fraud, they can occur when recipients receive either too much or too little assistance because of mistakes in determining eligibility or benefit amounts.
"A state agency accidentally putting a zero instead of a nine," Dastuge said, describing the type of error that could affect calculations.
Those costs could add up quickly.
According to research from the Sycamore Institute, Tennessee could face approximately $81 million in annual costs if its payment error rate falls between 6% and 8%. The institute estimates costs could climb as high as $243 million annually if the error rate exceeds 10%.
Dastuge argues Tennessee is being asked to adapt to the changes without enough time to prepare.
"The problem is, the years from which the payment error rates will be pulled to calculate this? Already happened," she said. "It makes no sense. You've asked the state agency to implement all these changes and they're going to have to pay for them, and you've given them no time to prepare to do so."
The concerns are not limited to advocacy groups.
During a Tennessee Department of Human Services budget hearing earlier this year, Commissioner Clarence Carter acknowledged challenges facing human services agencies nationwide.
"We are at a historic and unique time in the American Human Services system," Carter said. "It is a unique and challenging moment."
Because of those concerns, the Tennessee Justice Center is urging Congress to delay implementation of the new penalties, giving the state more time to improve its payment accuracy.
"I have full belief the state agency can do it," Dastuge said. "I just want them to do it in a way that doesn't cause people to lose benefits in the process."
The organization believes Tennessee can reduce its error rate through measures such as additional staff training and other administrative improvements. However, advocates say the state needs more time to put those changes in place before the new penalties take effect.
Do you have more information about this story? You can email me at Chris.Davis@NewsChannel5.com
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