Food stamp changes: A different kind of stimulus

A bailout it's not. But the first major federal stimulus money targeting low-income folks is slated to arrive in Minnesota starting Wednesday, when an unprecedented $175 million will be pumped into the state food stamp program.

The 317,000 Minnesotans relying on food stamps will get a 14 percent increase in their monthly benefits. For a family of four, that means a jump in maximum benefits of $80 a month to about $668.

Community grocery stores are expected to feel that cash injection, which could also take some pressure off food shelves, said JoAnn Tesar, of the Community Action Partnership of Ramsey and Washington Counties, an anti-poverty agency.

"This is not going to stop foreclosures, but it could stretch a food budget a couple extra days each month before people head to the food shelf," said Tesar. "And it should have a ripple effect. It won't just help low income people."

Nationally, $20 billion will be pumped into the food stamp program, arriving just as demand for food stamps by laid-off workers is exploding. The money will pad benefits for current users but will not add more people to the program.

Shoppers at Sun Foods, a midsized grocery store on University Avenue in St. Paul, said they had ideas about how they'd spend the extra cash. At least a third of the store's customers rely on the stamps, staff said.

"If we get more food stamps, I'd like to buy more [fresh] vegetables, fruits and milk for the children," said Ia Thao, who will have $84 a month more to spend on food.

The monthly benefit for her family -- her husband and three children -- is now $606.

Thao, who is also a store cashier, said it's not uncommon for families to run out of food stamps by the end of the month -- and then sheepishly return food from the checkout line to the grocery store shelves. She thinks the increase will help a lot of people.

More spending

Store manager Han Chin views the stimulus package from another angle.

"If people get food stamps, they can spend more," Chin said. "That means more customers, more business."

The Minnesota Grocers Association, which represents 1,200 retail stores and 150 related businesses, said the funding will help the entire food industry.

"Having this influx of [grocery store] sales will help us maintain jobs in our communities and also for our food manufacturers," said Jamie Pfuhl, association president. "It will drive up demand for the food industry in Minnesota."

The stimulus money dries up October 2010, said Chuck Johnson, an assistant commissioner at the Minnesota Department of Human Services. It overrides any food stamp increases that would have kicked in during that period, he said.

The value of all food stamps distributed in Minnesota last year was $318 million; the stimulus package will add $175 million.

The timing couldn't be better, said anti-poverty workers. Having extra food money will free up cash for utility bills, housing and other basic needs that laid-off workers are struggling to pay. The number of Minnesotans receiving food stamps jumped 38,000 from February 2008 to 2009.

To qualify for food stamps, Minnesotans must have a gross income no more than 130 percent of the federal poverty line, which is $1,907 a month for a family of three, according to Ramsey County. Apart from owning a home and a vehicle, individuals cannot have more than $2,000 in assets. The precise amount varies, depending on household size and a few other factors.

Other programs for low-income Minnesotans also are slated to get federal stimulus dollars this year, said Johnson, including child care assistance, homeless prevention and home weatherization, he said.

Precisely how those additional funds will be used is being ironed out at the Legislature, said Johnson.

Jean Hopfensperger • 651-298-1553