[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5811]


[[Page Unknown]]

[Federal Register: March 14, 1994]


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DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
RIN 0584-AB61

 

Food Stamp Program: Maximum Allotments for Alaska, Hawaii, Guam, 
and the Virgin Islands

AGENCY: Food and Nutrition Service, USDA.

ACTION: General Notice

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SUMMARY: By this notice, the Department of Agriculture is updating the 
maximum food stamp allotments for participating households in Alaska, 
Hawaii, Guam, and the Virgin Islands. These annual adjustments, 
required by law, take into account changes in the cost of food and 
statutory adjustments.

EFFECTIVE DATE: October 1, 1993.

FOR FURTHER INFORMATION CONTACT: Judith M. Seymour, Supervisor, 
Eligibility and Certification Regulations Section, Certification Policy 
Branch, Program Development Division, Food Stamp Program, Food and 
Nutrition Service, USDA, Alexandria, Virginia 22302, (703) 305-2496.

SUPPLEMENTARY INFORMATION:

Publication

    As required by law, State agencies implemented this action on 
October 1, 1993 based on advance notice of the new amounts. Based on 
regulations published at 47 FR 46485 (October 19, 1982) annual 
statutory adjustments to the maximum allotment levels, income 
eligibility standards, and deductions are issued by General Notices 
published in the Federal Register and not through rulemaking 
proceedings.

Classification

Executive Order 12866

    The Food and Nutrition Service is issuing this proposed rule in 
conformance with Executive Order 12866, and has determined that it is 
not a ``significant regulatory action.'' Based on information compiled 
by the Department, it has been determined that this action: (1) Would 
have an effect on the economy of less than $100 million; (2) would not 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local or tribal governments or communities; 
(3) would not create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency; (4) would not 
materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or rights and obligations of recipients thereof; 
and (5) would not raise novel legal or policy issues arising out of 
legal mandates, the President's priorities, or principles set forth in 
Executive Order 12866.

Executive Order 12372

    The Food Stamp Program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.551. For the reasons set forth in the Final 
rule and related Notice to 7 CFR Part 3015, Subpart V (48 FR 29116, 
June 24, 1983), this program is excluded from the scope of Executive 
Order No. 12372 which requires intergovernmental consultation with 
State and local officials.

Regulatory Flexibility Act

    William E. Ludwig, the Administrator of the Food and Nutrition 
Service, has certified that this action will not have a significant 
economic impact on a substantial number of small entities. The action 
will increase the amount of money spent on food through increases in 
food stamp benefits issued to participating households. However, this 
money will be distributed among the nation's food vendors as the food 
stamps are used by households, so the effect on any one vendor will not 
be significant.

Paperwork Reduction Act

    This action does not contain reporting or recordkeeping 
requirements subject to review by the Office of Management and Budget.

Background

Thrifty Food Plan (TFP) and Allotments

    The TFP is a plan for the consumption of foods of different types 
(food groups) that families might use to provide nutritious meals and 
snacks for family members. The plan suggests amounts of food for men, 
women, and children of different ages, and it meets most dietary 
standards. The cost of the TFP is adjusted monthly to reflect changes 
in the costs of the food groups.
    TFPs for Alaska and Hawaii are based upon an adjusted average for 
the six-month period that ends with June 1993. Since the Bureau of 
Labor Statistics (the source of food price data) no longer publishes 
monthly information to compute Alaska and Hawaii TFPs, the adjusted 
average provides a proxy for actual June 1993 TFP costs. The adjusted 
average is equal to January-June 1993 TFP costs for Alaska and Hawaii 
increased by the average percentage difference between the cost of the 
TFP in Alaska and Hawaii in June and the January-June average from 1976 
through 1986 (a 1.53 percent increase over January-June costs in Alaska 
and a 1.82 percent increase in Hawaii).
    For the period January through June 1993, the average cost of the 
TFP was $467.70 in Alaska and $596 in Hawaii. The proxies for actual 
June 1993 TFP costs were $474.86 in Alaska and $606.85 in Hawaii. The 
June 1993 cost of the TFP was $587.70 in Guam and $469.10 in the Virgin 
islands.
    The TFP is also the basis for establishing food stamp allotments. 
Food stamp allotments are adjusted periodically to reflect changes in 
food cost levels. Section 3(o)(11) of the Food Stamp Act of 1977, as 
amended (7 U.S.C. 2012(o)(11)) provides for an adjustment on October 1, 
1993, based upon 103 percent of the June 1993 cost of the TFP for a 
family of four persons consisting of a man and woman ages 20-50 and 
children ages 6-8 and 9-11.
    The maximum food stamp benefit or allotment is paid to households 
which have no net income. For households which have some income, their 
allotment is determined by reducing the maximum allotment for their 
household size by 30% of the household's net income. To obtain the 
maximum food stamp allotment for each household size, the TFP costs for 
the four-person household were increased by 3 percent, divided by four, 
multiplied by the appropriate household size and economy of scale 
factor, and the final result was rounded down to the nearest dollar.
    Pursuant to section 3(o)(3) of the Food Stamp Act (7 U.S.C. 
2012(o)(3)), maximum food stamp benefits for Guam and the Virgin 
Islands cannot exceed those in the 50 States and D.C., so they are 
based upon the lower of their respective TFPs or the TFP for rural II 
Alaska. In addition, the urban Alaska allotment is the higher of the 
allotment that was in effect in urban areas on October 1, 1985 or 
100.79 percent of the adjusted Anchorage TFP (see 50 FR 18456, dated 
May 1, 1984, and 51 FR 16281, dated May 2, 1986).
    According to regulations published at 51 FR 16281, on May 2, 1986, 
the allotment for rural I areas is the higher of the allotment that was 
in effect in each rural I area on October 1, 1985 or 128.52 percent of 
the Anchorage TFP (as adjusted). The rural II allotment is 156.42 
percent of the adjusted Anchorage TFP (Alaska TFP). For further 
information concerning the allotments for urban Alaska, rural I Alaska, 
and rural II Alaska, see 51 FR 16281, dated May 2, 1986.
    The following table shows new allotments for urban Alaska, rural I 
Alaska, rural II Alaska, Hawaii, Guam, and the Virgin Islands.

                             Maximum Allotment Amounts\1\--October 1993, s Adjusted                             
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                                       Urban       Rural I      Rural II                                Virgin  
          Household size             Alaska\2\    Alaska\3\    Alaska\4\      Hawaii      Guam\5\     Islands\5\
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1.................................         $147         $188         $229         $187         $166         $144
2.................................          271          345          420          343          304          265
3.................................          388          495          602          492          436          380
4.................................          492          628          765          625          553          483
5.................................          585          746          908          742          657          573
6.................................          702          895        1,090          890          789          688
7.................................          776          990        1,204          984          872          760
8.................................          887        1,131        1,377        1,125          997          869
Each additional member............         +111         +141         +172         +141         +125         +109
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\1\Adjusted to reflect the cost of food in June 1993, adjustments for each household size, economies of scale, a
  1.03 percent increase in the TFP and rounding.                                                                
\2\These levels are 100.79 percent of the Anchorage TFP, as adjusted.                                           
\3\These levels are 128.52 percent of the Anchorage TFP, as adjusted.                                           
\4\These levels are 156.42 percent higher than the Anchorage TFP, as adjusted.                                  
\5\Adjusted to reflect changes in the cost of food in the 48 States and D.C., which correlate with price changes
  in these areas. Maximum allotments in these areas cannot exceed those in rural II Alaska.                     

    Maximum allotments for the 48 States and D.C. were published in a 
separate notice in the Federal Register. These adjustments were made 
sooner than the adjustments for Alaska, Hawaii, Guam and the Virgin 
Islands because the data to accomplish the update for the 48 States and 
D.C. were available sooner than the data for the other areas covered by 
this notice.
(7 U.S.C. 2011-2032)

    Dated: March 3, 1994.
William E. Ludwig,
Administrator.
[FR Doc. 94-5811 Filed 3-11-94; 8:45 am]
BILLING CODE 3410-30-U