Gov. Perry Announces $29.8 Million Federal Award to Texas Disability Benifits

AUSTIN - Governor Rick Perry announced today that Texas will receive a $29.8 million bonus from the federal government thanks to Texas Department of Human Services' (DHS) accuracy in administering the federal Food Stamp Program.

"I want to commend DHS Commissioner James R. Hine and all the DHS employees for their diligence in ensuring that Texas not only provides needy families with access to food aid, but also safeguards against misuse of taxpayer resources," Perry said. "Texas has now received the four largest awards for food stamp payment accuracy ever given."

Including this bonus, DHS' efforts have brought more than $106 million dollars into state coffers since 1999. The latest bonus is the largest such payment to a single state in the Food Stamp program's 40-year history. Texas remains the only large population state to earn enhanced funding. States that perform poorly face federal sanctions, while the USDA awards bonus payments to the most accurate state programs.

"Earning this bonus again is the equivalent of winning the Super Bowl four years in a row," said DHS Commissioner Hine. "In this case, however, the winners are disabled, elderly and low-income Texas families whose lives will be improved thanks to this unprecedented achievement."

U.S. Department of Agriculture officials announced that Texas had a food stamp accuracy rate of 96.27 percent, compared to the national average of 91.34 percent. This means that only 3.37 percent of Texas cases handled had errors, such as overpaying or underpaying benefits. In 2001, DHS processed $1.2 billion in food stamp payments to a monthly average of 1.3 million Texans.

"This latest recognition by the U.S. Department of Agriculture is further proof that Texas has become a national leader in the effective and efficient delivery of social services," Perry said. "At the same time, we continue being good stewards of taxpayers funds."

DHS employees have cut the payment error rate by two-thirds over the past seven years using a wide range of management and technological tools, including:

• Computer data matches to verify applicant information on vehicles, property holdings and other financial information related to food stamp eligibility.
• Teams of case readers to review applications to correct errors that result in either overpayment or underpayment of benefits.
• Investigations by the DHS Office of Inspector General of discrepancies in food stamp applications to deter potential fraud. In 2001, DHS also collected $24.5 million in repayments to taxpayers and disqualified fraudulent applicants.

DHS also educates Texans about their potential eligibility for food stamps as part of a statewide outreach campaign.

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