Food Stamp Program: Characteristics of Households Affected by Limit on
the Shelter Deduction (Letter Report, 05/14/97, GAO/RCED-97-118).

Pursuant to a congressional request, GAO reviewed the legislative
changes to the Food Stamp Program mandated by the 1996 welfare reform
act; focusing on, for fiscal year (FY) 1995, the: (1) characteristics of
households whose food stamp benefits were limited because of the cap on
their deduction for excess shelter expenses; and (2) extent to which
food stamp benefits would have been higher for these households if there
had not been a cap.

GAO noted that: (1) in FY 1995, households whose food stamp benefits
were limited because of the cap on the deduction for excess shelter
expenses differed in several key respects from households not affected
by this cap; (2) nearly all households affected by the cap had children,
while only slightly more than half of households not affected by the cap
had children; (3) moreover, households affected by the cap were more
likely to: (a) be headed by asingle female; (b) have noncitizen members;
(c) have earned income; and (d) live in urban areas; (4) affected
households also typically had more household members and received more
in food stamp benefits than those not affected by the cap; (5)
households affected by the cap tended to be located in the Northeast and
West, while households not affected by the cap tended to be located in
the South; (6) in the absence of the cap on the excess shelter expenses
deduction in FY 1995, the average monthly food stamp benefit for
affected households would have been about 12 percent, or $31, higher;
(7) total federal food stamp expenditures would have increased by 1.9
percent, for a total of $417 million in FY 1995; (8) the largest
increase would have been for households in the Northeast, where average
shelter costs are the highest; (9) nationwide, households in urban areas
would have received larger increases than those in rural areas; and (10)
households in New York and California would have received almost half of
these additional benefits.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  RCED-97-118
     TITLE:  Food Stamp Program: Characteristics of Households Affected 
             by Limit on the Shelter Deduction
      DATE:  05/14/97
   SUBJECT:  Cost of living
             Welfare recipients
             Welfare benefits
             Cost control
             Population statistics
             Eligibility determinations
             Disadvantaged persons
             Public assistance programs
IDENTIFIER:  Food Stamp Program
             Aid to Families with Dependent Children Program
             General Public Assistance Program
             Supplemental Security Income Program
             Social Security Program
             AFDC
             
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Cover
================================================================ COVER


Report to the Ranking Minority Member, Subcommittee on Children and
Families, Committee on Labor and Human Resources, U.S.  Senate

May 1997

FOOD STAMP PROGRAM -
CHARACTERISTICS OF HOUSEHOLDS
AFFECTED BY LIMIT ON THE SHELTER
DEDUCTION

GAO/RCED-97-118

Food Stamp Program

(150268)


Abbreviations
=============================================================== ABBREV

  AFDC - Aid to Families With Dependent Children
  FCS - Food and Consumer Service
  GAO - General Accounting Office
  IQCS - Integrated Quality Control System
  USDA - U.S.  Department of Agriculture

Letter
=============================================================== LETTER


B-276578

May 14, 1997

The Honorable Christopher J.  Dodd
Ranking Minority Member
Subcommittee on Children and Families
Committee on Labor and Human Resources
United States Senate

Dear Senator Dodd: 

The Food Stamp Program, the nation's largest food assistance program,
provided almost $22.5 billion in benefits to a monthly average of
more than 25 million low-income participants in fiscal year 1996.  In
1996, the Congress made changes in the Food Stamp Program that,
according to the Congressional Budget Office, will reduce program
expenditures by a projected total of $23.1 billion for the 6-year
period from fiscal year 1997 through 2002.  These changes were
mandated by the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (P.L.  104-193, Aug.  22, 1996), which
overhauled the nation's welfare system. 

One provision of this act affects how the income of a household that
receives food stamps is considered in determining the dollar value of
the household's monthly food stamp benefit.  Under the Food Stamp
Program, the net monthly income of a household is one of the factors
used to calculate the food stamp benefit.  Net monthly income is
determined by subtracting a number of approved deductions from the
household's gross monthly income.  One of these deductions is for
shelter expenses that exceed 50 percent of a household's income after
other allowable deductions have been taken.  This deduction is known
as the excess shelter expense deduction.  Included among deductible
shelter expenses are rent, mortgage payments, utility bills, property
taxes, and insurance.  The purpose of the excess shelter expense
deduction is to take into consideration the effect of
higher-than-average shelter costs on a low-income household's ability
to purchase an adequate amount of food. 

The welfare reform act retained an existing limit, or cap, on the
amount of excess shelter expenses that can be deducted from income
for households receiving food stamps without elderly or disabled
members.\1 In fiscal year 1995, the cap on excess shelter expenses
that could be deducted from gross income was $231 a month.\2 Under
previous legislation, the cap was scheduled to be removed on January
1, 1997.\3 With the cap maintained, some households without elderly
or disabled members will receive a smaller food stamp benefit than
they would have received if the cap had been removed.  This is
because these households are not allowed to deduct all of their
excess shelter expenses from their income used to calculate their
monthly food stamp benefit. 

In October 1996, you asked us to study several issues related to the
impact of welfare reform on the Food Stamp Program.  This report is
the first in a series addressing the legislative changes to the Food
Stamp Program mandated by the 1996 welfare reform act.  In this
report, we describe, for fiscal year 1995, the (1) characteristics of
households whose food stamp benefits were limited because of the cap
on their deduction for excess shelter expenses and (2) extent to
which food stamp benefits would have been higher for these households
if there had not been a cap. 

To analyze the characteristics of households whose food stamp
benefits were limited by the cap, we used the U.S.  Department of
Agriculture's (USDA) database on the characteristics of food stamp
households for fiscal year 1995, the most current year for which data
are available.  Appendix II contains a description of the USDA
database used in our analysis, information on sampling errors
(margins of error), and further details on our methodology. 


--------------------
\1 Elderly and disabled are defined in 7 CFR section 271.2. 

\2 The cap was $231 a month in the 48 contiguous states and the
District of Columbia, $402 in Alaska, $330 in Hawaii, $280 in Guam,
and $171 in the Virgin Islands. 

\3 Omnibus Budget Reconciliation Act of 1993 (P.L.  103-66, Aug.  10,
1993). 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

In fiscal year 1995, households whose food stamp benefits were
limited because of the cap on the deduction for excess shelter
expenses differed in several key respects from households not
affected by this cap.  Nearly all households affected by the cap had
children, while only slightly more than half of households not
affected by the cap had children.  Moreover, households affected by
the cap were more likely to (1) be headed by a single female, (2)
have noncitizen members, (3) have earned income, and (4) live in
urban areas.  Affected households also typically had more household
members and received more in food stamp benefits than those not
affected by the cap.  Finally, households affected by the cap tended
to be located in the Northeast and West, while households not
affected by the cap tended to be located in the South. 

In the absence of the cap on the excess shelter expense deduction in
fiscal year 1995, the average monthly food stamp benefit for affected
households would have been about 12 percent, or $31, higher.  Total
federal food stamp expenditures would have increased by 1.9 percent,
for a total of $417 million in fiscal year 1995.  The largest
increase would have been for households in the Northeast, where
average shelter costs are the highest.  Nationwide, households in
urban areas would have received larger increases than those in rural
areas.  Households in New York and California would have received
almost half of these additional benefits. 


   BACKGROUND
------------------------------------------------------------ Letter :2

The Food Stamp Program helps low-income individuals and families
obtain a more nutritious diet by supplementing the funds they have to
spend on food with food stamp benefits.  In fiscal year 1995, the
average monthly food stamp benefit was $172 per household.  These
benefits are generally provided through coupons or electronically on
debit cards (similar to a bank card) that may be used to purchase
food at authorized stores. 

The Food Stamp Program is a federal-state partnership, with the
federal government paying the full cost of the food stamp benefits
and approximately half of the states' administrative costs.  USDA's
Food and Consumer Service administers the program at the federal
level.  States' responsibilities include certifying eligible
households, calculating benefit amounts, and issuing benefits to
participants who meet the income and asset standards set by the
Congress. 

After a household is certified as being eligible for food stamps, the
household's monthly food stamp benefit is computed on the basis of
several factors, including the household's net monthly income.  A
household's net monthly income is computed by subtracting six
allowable deductions from the household's gross monthly income:  a
standard deduction, an earned income deduction, a dependent care
deduction, a medical deduction,\4 a child support deduction, and an
excess shelter expense deduction.  A household's monthly food stamp
benefit is computed by subtracting 30 percent of the household's net
income from the maximum allowable food stamp benefit for the
household's size.\5 This last step is based on two assumptions. 
First, the maximum food stamp benefit represents the amount a
household with zero net income would need to purchase food for
nutritious but inexpensive meals each month.  Second, a household is
expected to spend 30 percent of its net income to buy enough food for
a month.  See appendix I for an example of how the net monthly income
and food stamp benefit were calculated for a single female-headed
household with three children in fiscal year 1995. 

In fiscal year 1995, about two-thirds, or about 7.2 million, of the
almost 10.9 million food stamp households took the deduction for
excess shelter expenses.  Of the households taking the deduction,
about 2.3 million were not subject to the deduction cap because they
contained an elderly or disabled person.  Of the remaining households
taking the excess shelter expense deduction and subject to the cap,
about 1.1 million households would have received more in food stamp
benefits in the absence of the cap.  These 1.1 million affected
households, which represent about 10 percent of all food stamp
households, would have received more in food stamp benefits in the
absence of the cap because they (1) had excess shelter expenses they
could not deduct from their income and (2) were not receiving the
maximum allowable food stamp benefit.  In contrast, about 90 percent,
or about 9.8 million households, were not affected by the cap on the
excess shelter expense deduction in fiscal year 1995 because (1) they
did not take the deduction, (2) they had household members who were
elderly or disabled, (3) their excess shelter expenses were lower
than the cap, or (4) they were already receiving the maximum
allowable food stamp benefit even though they had excess shelter
expenses that were greater than the $231 cap.  Table 1 shows the
number and percentage of households taking the excess shelter expense
deduction, and table 2 shows the number and percentage of households
affected and not affected by the cap on the excess shelter expense
deduction in fiscal year 1995. 



                                Table 1
                
                  Number and Percentage of Households
                   Taking the Excess Shelter Expense
                     Deduction in Fiscal Year 1995

                                         Number of          Percent of
Type of household                       households          households
------------------------------  ------------------  ------------------
All food stamp households               10,882,782               100.0
Did not take excess shelter              3,636,530                33.4
 expense deduction
Took excess shelter expense              7,246,252                66.6
 deduction
----------------------------------------------------------------------


                                Table 2
                
                  Number and Percentage of Households
                Affected and Not Affected by the Cap on
                    the Deduction for Excess Shelter
                       Expenses, Fiscal Year 1995

                                         Number of          Percent of
Type of household                       households          households
------------------------------  ------------------  ------------------
Benefits affected by cap on              1,115,583                10.3
 excess shelter expense
 deduction
Benefits not affected by the           9,767,199\a                89.7
 cap on excess shelter expense
 deduction
Did not take shelter deduction           3,636,530                33.4
Not subject to cap because of            2,316,844                21.3
 elderly and disabled members
Not affected by the $231 cap             3,049,980                28.0
 because households' excess
 shelter expense deduction was
 less than the cap
Not affected by the $231 cap               763,845                 7.0
 because household was
 receiving maximum benefit
----------------------------------------------------------------------
\a 9,767,199=3,636,530+2,316,844+3,049,980+763,845


--------------------
\4 The medical deduction allows households that contain elderly or
disabled members to deduct all medical costs incurred by the elderly
or disabled person that exceed $35 per month if these expenses are
not paid by insurance or someone else. 

\5 In fiscal year 1995, the maximum food stamp benefit ranged from
$115 for a household of one to $695 for a household of eight.  For
each additional household member after eight, the benefit increased
by $87 in the contiguous United States. 


   CHARACTERISTICS OF HOUSEHOLDS
   AND PARTICIPANTS AFFECTED BY
   THE CAP ON EXCESS SHELTER
   EXPENSE DEDUCTION
------------------------------------------------------------ Letter :3

In fiscal year 1995, the 1.1 million households affected by the cap
on the deduction for excess shelter expenses differed in several
aspects from households not affected by the cap.  Appendix III
provides more detailed information on the characteristics of affected
households.  Below is a description of the characteristics of
households affected by the cap in terms of their composition, income,
shelter expenses, geographic location, and level of food stamp
benefits. 


      HOUSEHOLD COMPOSITION
---------------------------------------------------------- Letter :3.1

In fiscal year 1995, households affected by the excess shelter cap
were more likely than households not affected to (1) contain
children, (2) be headed by a single female,\6 (3) have more members,
and (4) have more noncitizen members.\7

Children were members of about 93 percent of the 1.1 million food
stamp households affected by the excess shelter cap.  In contrast,
children were members of about 56 percent of the food stamp
households not affected by the cap.  See figure 1. 

   Figure 1:  Percent of Affected
   and Not Affected Households
   With Children

   (See figure in printed
   edition.)

In total, affected households contained about 2.3 million children
under the age of 18.  These children represented about 17 percent of
all children receiving food stamp benefits in fiscal year 1995. 
Moreover, slightly more than half of the affected households, 51.4
percent, contained preschool children, while about one-third, 32.2
percent, of households not affected by the cap on the excess shelter
expense deduction contained preschool children.\8

Single females headed almost two-thirds of the food stamp households
affected by the excess shelter cap in fiscal year 1995.  In contrast,
slightly more than one-third of the households not affected by the
cap were headed by single females.  (See fig.  2.)

   Figure 2:  Percent of Affected
   and Not Affected Households
   Headed by a Single Female

   (See figure in printed
   edition.)

The average size of affected households was larger than not affected
households, 3.4 and 2.4 members, respectively (see fig.  3).  The
difference was primarily due to the fact that a greater percentage of
affected households had children. 

   Figure 3:  Average Size of
   Affected and Not Affected
   Households

   (See figure in printed
   edition.)

A higher percent of affected households, 18.2 percent, contained a
noncitizen compared with 9.8 percent of not affected households (see
fig.  4).  Under the 1996 welfare reform act, many noncitizens will
no longer receive food stamp benefits. 

   Figure 4 :  Percent of Affected
   and Not Affected Households
   Containing Noncitizens

   (See figure in printed
   edition.)


--------------------
\6 By definition, a single female-headed household has one adult
female age 18 or older plus one or more children. 

\7 A noncitizen (alien) is anyone not born in the United States or
not a naturalized citizen. 

\8 Households with children less than 5 years old. 


      INCOME
---------------------------------------------------------- Letter :3.2

Households affected by the cap tended to have more income than
households not affected by the cap.\9 In fiscal year 1995, a smaller
percentage of affected households had gross monthly incomes equal to
or below 50 percent of the poverty level than did not affected
households, 34.8 percent and 43.4 percent, respectively.  Figure 5
shows these differences. 

   Figure 5:  Percent of Affected
   and Not Affected Households in
   Relationship to the Poverty
   Level

   (See figure in printed
   edition.)

Households affected by the cap had higher average gross monthly
incomes than households not affected by the cap, $643 and $500,
respectively.  Gross income can include both earned and unearned
income.  The sources of unearned income came from public assistance
programs, such as Aid to Families With Dependent Children (AFDC),\10
General Assistance, Supplemental Security Income, and Social
Security.  A greater percentage of affected households--about
one-third--had earned income than not affected households--about
one-fifth.  (See fig.  6.)

   Figure 6:  Percent of Affected
   and Not Affected Households
   With and Without Earned Income

   (See figure in printed
   edition.)

The percent of households with children having earned income was
comparable for affected and not affected households, 31.3 percent and
29.8 percent, respectively.\11


--------------------
\9 All affected households had gross income.  However, 10.8 percent
(+ or - .8% ) of not affected households had no gross income. 

\10 P.L.  104-193 terminated AFDC and replaced it with block grants
for temporary assistance for needy families (known as TANF). 

\11 There is not a significant difference between the reported
comparison of earned income for affected and not affected households. 


      SHELTER EXPENSES
---------------------------------------------------------- Letter :3.3

Affected households had average shelter expenses more than twice as
high as not affected households, $618 and $254, respectively. 
Affected households with children had average monthly shelter
expenses of $621 compared with $262 for not affected households with
children.  Figure 7 shows the average monthly shelter expenses for
affected and not affected households with and without children. 

   Figure 7:  Average Monthly
   Shelter Expenses for Affected
   and Not Affected Households
   With and Without Children

   (See figure in printed
   edition.)


      GEOGRAPHIC LOCATION
---------------------------------------------------------- Letter :3.4

Households affected by the cap tended to be located in different
parts of the nation than those not affected by the cap.  Affected
households tended to be concentrated in the Northeast, 37.5 percent,
and West, 27.9 percent, while not affected households tended to be
located in the South, 41.5 percent.  However, both affected and not
affected households, 88.8 and 76.4 percent, respectively, tended to
be located in urban areas.  Table 3 shows the differences and
similarities in the location of these households. 



                                Table 3
                
                  Percent of Affected and Not Affected
                         Households by Location

                                        Percent of          Percent of
                                          affected        not affected
Location\a                              households          households
------------------------------  ------------------  ------------------
Northeast                                     37.5                18.3
Midwest\b                                     18.0                21.6
South                                         16.5                41.5
West                                          27.9                18.5
======================================================================
Total\c                                      100.0               100.0
Urban                                         88.8                76.4
Rural                                         11.2                23.6
======================================================================
Total                                        100.0               100.0
----------------------------------------------------------------------
\a The Northeast includes Connecticut, Maine, Massachusetts, New
Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and
Vermont.  The Midwest includes Illinois, Indiana, Iowa, Kansas,
Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South
Dakota, and Wisconsin.  The South includes Alabama, Arkansas,
Delaware, District of Colombia, Florida, Georgia, Kentucky,
Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South
Carolina, Tennessee, Texas, Virginia, and West Virginia.  The West
includes Alaska, Arizona, California, Colorado, Hawaii, Idaho,
Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. 
A household is considered to be located in an urban area if the
county in which its local food stamp agency is located is in a
Metropolitan Statistical Area as defined by the Census Bureau.  A
household is considered to be located in a rural area if the county
in which its local food stamp agency is located is not in a
Metropolitan Statistical Area as defined by the Census Bureau. 

\b There is not a significant difference between the reported
comparison of affected and not affected households in the Midwest. 

\c Totals do not add up to 100 percent due to rounding. 

Over half, 53.9 percent, of food stamp households affected by the
cap, were located in four states--California, Michigan, New York, and
Pennsylvania.  In comparison 26 percent of households not affected by
the cap were located in these four states. 


      FOOD STAMP BENEFIT AMOUNTS
---------------------------------------------------------- Letter :3.5

Affected households had larger monthly food stamp benefits than not
affected households.  The average monthly food stamp benefit for
affected households was $261 compared with an average monthly food
stamp benefit for not affected households of $162.  This was also
true for affected households with children compared with not affected
households with children; $271 and $225 per month in food stamp
benefits, respectively.  Figure 8 shows the average monthly food
stamp benefit for affected and not affected households with and
without children. 

   Figure 8:  Average Monthly Food
   Stamp Benefits for Affected and
   Not Affected Households With
   and Without Children

   (See figure in printed
   edition.)

In fiscal year 1995, almost 70 percent of affected households were
receiving more than 75 percent but less than 100 percent of the
allowable maximum food stamp benefit. 


   FOOD STAMP BENEFIT INCREASES IN
   ABSENCE OF A CAP
------------------------------------------------------------ Letter :4

Food stamp benefits for the 1.1 million households affected by the
cap would have increased by about 12 percent, on average, or about
$31 per month, in absence of the cap in fiscal year 1995.  Appendix
III contains detailed information on the characteristics of food
stamp households that would have received increases in benefits in
the absence of a cap. 

As a result of the increased benefit, an affected household's average
monthly food stamp benefit would have increased from $261 to $292 in
fiscal year 1995.  Food stamp benefits for affected households with
children would have increased from $271 to $303. 

By geographic location, affected households in the Northeast, where
average shelter costs for households receiving food stamps were the
highest at $688, would have received the largest average monthly
increase, $41.  Households in urban areas would have received larger
average monthly increases, $32, than in rural areas, $25.  Figure 9
shows the average monthly increase in food stamp benefits by state in
absence of a cap on the excess shelter expense deduction in fiscal
year 1995. 

   Figure 9:  Average Monthly
   Increase in Food Stamp Benefits
   by State in Absence of the Cap
   in Fiscal Year 1995

   (See figure in printed
   edition.)

In the absence of the cap, total federal food stamp expenditures
would have increased by approximately 1.9 percent, or $34.7 million
monthly, for a total of $417 million, in fiscal year 1995.  More than
95 percent, or $400 million, of the total increase would have gone to
households with children.  Almost 80 percent of all additional
benefits would have gone to households in 10 states.  Of these 10
states, California and New York would have received almost half of
these additional benefits.  Table 4 shows the 10 states that would
have received the largest percentage share of the increases in
benefits in absence of the cap in fiscal year 1995 and the percentage
of food stamp benefits provided to those states in that fiscal year. 



                                Table 4
                
                     The 10 States With the Largest
                  Percentage Share of the Increase in
                 Benefits in the Absence of the Cap on
                 the Excess Shelter Expense Deduction,
                   Compared to States' Share of Total
                       Fiscal Year 1995 Benefits

                                  Percent of total    Percent of total
                                       increase in          food stamp
                                          benefits            benefits
                                 in absence of the         received in
State                                          cap    fiscal year 1995
------------------------------  ------------------  ------------------
New York                                      32.3                 8.5
California                                    17.2                11.1
Michigan                                       5.4                 3.7
Massachusetts                                  4.7                 1.5
Pennsylvania                                   4.2                 4.4
Washington                                     3.9                 1.9
Texas                                          3.3                10.2
New Jersey                                     3.2                 2.2
Florida                                        3.1                 5.6
Connecticut                                    2.7                 0.8
----------------------------------------------------------------------

   AGENCY COMMENTS
------------------------------------------------------------ Letter :5

We provided copies of this report to USDA for its review and comment. 
We met with officials of the Department, including the Director of
Family Programs Staff, Office of Analysis and Evaluation, Food and
Consumer Service, who agreed with the data as presented in this
report. 

We conducted our review from December 1996 through April 1997 under
generally accepted government auditing standards.  However, we not
did verify the accuracy and reliability of the data from USDA's
database on households receiving food stamps in fiscal year 1995. 


---------------------------------------------------------- Letter :5.1

As arranged with your office, unless you publicly announce its
contents earlier, we plan no further distribution of this report
until 7 days from the date of this letter.  At that time, we will
send copies of this report to the Senate Committee on Agriculture,
Nutrition, and Forestry; the House Committee on Agriculture; other
interested congressional committees; and the Secretary of
Agriculture.  We will also make copies available upon request. 

If you have any questions about this report, I can be reached at
(202) 512-5138.  Major contributors to this report are listed in
appendix IV. 

Sincerely yours,

Robert A.  Robinson
Director, Food and
 Agriculture Issues


EXAMPLE OF CALCULATION OF FOOD
STAMP BENEFIT
=========================================================== Appendix I

The following illustrates how the food stamp benefit was calculated
in fiscal year 1995 for a single female-headed household with three
children with monthly shelter expenses of $668.  This household had a
(1) gross monthly income of $1,168 per month (of which $1,115 was
earned income), (2) standard deduction of $134, (3) dependent care
deduction of $131, (4) earned income deduction of $223, and (5)
shelter deduction of $231.  This household was subject to the cap on
the excess shelter expense deduction because none of the household
members was disabled or elderly. 



                         Table I.1
          
            Example of Calculation of Food Stamp
                          Benefit

Type of factor considered                 Resulting amount
----------------------------  ----------------------------
Step 1: Determine adjusted gross month income before
excess shelter expense
ded
----------------------------------------------------------
Monthly income, including                           $1,168
 $1,115 in earned income
Standard deduction,                                   -134
 available to all households
Dependent care deduction for                          -131
 expenses incurred in caring
 for children while
 household member worked
Earned income deduction                               -223
 equal to 20% of household's
 monthly earnings (.20 x
 $1,115 = $223)
Adjusted gross monthly                                $680
 income before excess
 shelter expense deduction

Step 2: Determine excess shelter expen deduction
----------------------------------------------------------
Household's monthly shelter                           $668
 expenses, including rent
 and utilities
Less 50% of adjusted gross                            -340
 monthly income from step 1
 (.50 x $680 = $340)
Shelter expenses in excess                            $328
 of 50% of adjusted gross
 monthly income that would
 qualify for deduction in
 absence of the cap

Step 3: Determine household's net mont income
----------------------------------------------------------
Adjusted gross monthly                                $680
 income from step 1
Capped allowable excess                               -231
 shelter expense deduction.
 This deduction is less than
 the excess shelter expense
 calculated in step 2
 because of the cap.
Household's net monthly                               $449
 income counted in
 determining food stamp
 benefit

Step 4: Calculate monthly food stamp b on the basis of net
income
----------------------------------------------------------
Maximum monthly food stamp                            $386
 benefit for household of 4
 in 1995
Amount of household's income                          -135
 available for food. Based
 on 30% of net monthly
 income ($449 x .30 = $135)
Household's monthly food                              $251
 stamp benefit
----------------------------------------------------------

METHODOLOGY
========================================================== Appendix II

This appendix presents information on the database we used to
identify the characteristics of households receiving food stamps
whose benefits were limited because of the cap on the deduction for
excess shelter expenses.  This appendix also provides information on
the methodology we used to develop estimates. 


   USDA'S DATABASE ON HOUSEHOLDS
   RECEIVING FOOD STAMPS
-------------------------------------------------------- Appendix II:1

To analyze the characteristics of households whose food stamp
benefits were limited by the cap on the deduction for excess shelter
expenses, we used the U.S.  Department of Agriculture's (USDA)
database on the characteristics of food stamp households for fiscal
year 1995, the most current year for which data are available.  The
USDA database we used contains a representative sample of more than
50,000 food stamp households nationwide.  Therefore, the estimates
presented in this report, which are based on USDA's data, are
representative of the approximately 10.9 million participating food
stamp households in an average month in fiscal year 1995.  For our
analyses, we compared the characteristics of households whose
benefits were limited by the cap with those households whose benefits
were not affected by the cap.  All reported differences (except where
noted) between households whose benefits were affected by the cap and
households not affected by the cap are statistically significant.\1
To determine the extent to which food stamp benefits would have been
higher in the absence of the cap, we recalculated the benefits that
affected food stamp households would have received with no cap in
place.  We conducted our review between December 1996 and April 1997
under generally accepted government auditing standards; however, we
did not verify the accuracy of the USDA's data. 


--------------------
\1 A statistically significant difference means that the difference
between households affected by the cap and those not affected by the
cap are too large to be attributed to chance.  We applied a standard
t-test at the p = .05 level for all comparisons. 


      OVERVIEW OF UNIVERSE
------------------------------------------------------ Appendix II:1.1

To track changes in the characteristics and level of food stamp
participation, USDA's Food and Consumer Service (FCS) relies on data
from the Food Stamp Program's Integrated Quality Control System
(IQCS) database.  The IQCS database contains a nationally
representative sample of over 50,000 food stamp units\2 and is used
to assess the accuracy of eligibility determinations and benefit
calculations for a state's caseload for the Food Stamp Program. 


--------------------
\2 A food stamp unit refers to the persons in a household who
together are certified for and receive food stamps; for purposes of
this report, a food stamp unit is a household that receives food
stamps. 


      WEIGHTING AND SAMPLING
      DESIGN
------------------------------------------------------ Appendix II:1.2

The database is a national sample of participating units and is
stratified by month and by the 50 states and the District of
Columbia, Guam, and the U.S.  Virgin Islands.  All results are based
on weighted analyses, which take into account the fact that
individual food stamp units are sampled with a known non-zero and
unequal probability of selection.  These weights allow us to make
inferences to the entire universe of active food stamp units. 
Certain active cases are excluded from being sampled.  These include
cases in which participants died or moved outside the state, received
benefits by a disaster certification authorized by the FCS, received
benefits under a 60-day continuation of certification, were under
investigation for Food Stamp Program fraud, were appealing a notice
of adverse action and the review date falls within the period covered
by the continued participation pending a hearing, or received
restored benefits in accordance with the FCS-approved state manual
but were otherwise ineligible. 


   ESTIMATING BENEFITS IN ABSENCE
   OF THE CAP ON THE EXCESS
   SHELTER EXPENSE DEDUCTION
-------------------------------------------------------- Appendix II:2

We used the following procedure to identify those sampled households
whose benefits were affected by the cap and calculate what their
monthly food stamp benefit would have been in the absence of the cap. 
First, we identified those households in the database that met two
criteria:  The household (1) had deductible monthly excess shelter
expenses that exceeded the cap and (2) was not already receiving the
maximum monthly food stamp benefit.  Second, for each of these
households, we recalculated the household's monthly net income using
the household's actual excess shelter expense deduction instead of
the $231 cap.  Third, for each selected household, we recalculated
the household's monthly food stamp benefit using the adjusted net
income.  In performing the second and third steps, we used existing
USDA formulas. 


      SAMPLING ERRORS
------------------------------------------------------ Appendix II:2.1

Because we used a sample of 51,229 food stamp units to develop our
estimates, each estimate has a measurable precision, or sampling
error, that may be expressed as a plus or minus figure.  A sampling
error indicates how closely we can reproduce from a sample the
results that we would obtain if we were to take a complete count of
the universe using the same measurement methods.  By adding the
sampling error to and subtracting it from the estimate, we can
develop upper and lower bounds for each estimate.  This range is
called a confidence interval.  Sampling errors and confidence
intervals are stated at a certain confidence level--in this case, 95
percent.  For example, at the 95-percent confidence level, in 95 out
of 100 instances, the sampling procedure we used would produce a
confidence interval containing the universe values we are estimating. 
Standard formulas for the standard errors of estimates based on a
simple random sample do not necessarily apply to estimates derived
from more complex samples, such as the stratified sample of the IQCS. 
To adjust for the complex sampling design of the IQCS, we used an
adjustment factor, also known as a design effect, that inflates the
sampling error by a factor of two.  The factor of two was based on
the maximum design effect presented by FCS in its technical
appendix.\3

Tables II.1 to II.4 show the sampling errors for the numbers
presented in this report. 



                                        Table II.1
                         
                          Sampling Errors for Number and Percent
                                   by Type of Household

                                                                        Percent
                                                     Number             of food
                                                         of               stamp
                                         Reported  househol  Sampling  househol  Sampling
Type of household                        in              ds     error        ds     error
---------------------------------------  --------  --------  --------  --------  --------
Did not take excess shelter expense      Tables    3,636,53    81,421     33.4%       .8%
 deduction                                1               0
                                          and 2
Took excess shelter expense deduction    Table 1   7,246,25    90,721     66.6%       .8%
                                                          2
Benefits affected by cap on excess       Table 2   1,115,58    58,337     10.3%       .5%
 shelter expense deduction                                3
Benefits not affected by cap on excess   Table 2   9,767,19    58,377     89.7%        5%
 shelter expense deduction                                9
Not subject to cap because of elderly    Table 2   2,316,84    70,660     21.3%       .7%
 and disabled                                             4
 members
Benefits not affected by the cap         Table 2   3,049,98    77,525     28.0%       .8%
 because households' excess shelter                       0
 expense deduction was less than $231
 cap
Benefits not affected by the $231 cap    Table 2    763,845    44,097      7.0%       .5%
 because household was receiving
 maximum benefit
-----------------------------------------------------------------------------------------



                                        Table II.2
                         
                          Sampling Errors for Estimates Reported
                           Concerning Affected and Not Affected
                                        Households

                                       Households affected by  Households not affected by
                                              the cap                   the cap
                                       ----------------------  --------------------------
                             Reported                Sampling                    Sampling
Measure                      in           Value         error         Value         error
---------------------------  --------  --------  ------------  ------------  ------------
Children
Percent of households with   Fig. 1       93.3%          1.5%         55.8%           .9%
 children
Percent of households        Fig. 1        6.7%          1.5%         44.2%           .9%
 without children
Number of children in        Text      2,330,04        89,247    11,552,633       390,688
 households                                   1
Percent of households with   Text         51.4%          3.0%         32.2%           .9%
 preschool children
Head of household
Percent of households with   Fig. 2       63.4%          2.9%         36.7%          .09%
 children and single female
 head
Average household size       Fig. 3         3.4           .08           2.4           .04
Citizenship
Percent of households with   Fig. 4       18.2%          2.3%          9.8%          <.5%
 noncitizen member
Percent of households        Fig. 4       81.8%          2.3%         90.2%          <.5%
 without noncitizen member
Income
Percent of households with   Fig. 5       34.8%          2.8%         43.4%          <.9%
 gross income 50% of
 poverty level or less
Percent of households with   Fig. 5       65.2%          2.8%         56.6%          <.9%
 gross income over 50% of
 poverty level
Average monthly gross        Text          $643        $13.30          $500         $6.56
 income
Percent of households with   Fig. 6       32.4%          2.8%         20.2%          <.7%
 earned income
Percent of households        Fig. 6       67.6%          2.8%         79.8%          <.7%
 without earned income
Percent of households with   Text         31.3%          2.8%         29.8%          1.1%
 earned income with
 children
Shelter expenses
Average monthly shelter      Fig. 7        $618         $8.56          $254         $3.56
 expense
Average monthly shelter      Fig. 7        $621         $8.88          $262         $4.56
 expense--households with
 children
Average monthly shelter      Fig. 7        $568        $30.40          $245         $5.68
 expense--households
 without children
Average monthly shelter      Text          $688        $16.16            \a            \a
 costs--Northeast
Geographic location
Northeast                    Table 3      37.5%          2.9%         18.3%           <1%
Midwest                      Table 3      18.0%          2.3%         21.6%           <1%
South                        Table 3      16.5%          2.2%         41.5%           <1%
West                         Table 3      27.9%          2.7%         18.5%           <1%
Urban                        Table 3      88.8%          1.9%         76.4%           <1%
Rural                        Table 3      11.2%          1.9%         23.6%           <1%
Food stamp benefit--amount
Average monthly benefit      Fig. 8        $261         $5.88          $162         $2.12
Average monthly benefit--    Fig. 8        $271         $5.72          $225         $2.68
 households with children
Average monthly benefit--    Fig. 8        $121        $14.32           $81         $1.48
 households without
 children
Food stamp benefit--level
Percent of households        Text         69.0%          2.7%            \a            \a
 receiving more than 75% of
 maximum benefit but less
 than 100%
-----------------------------------------------------------------------------------------
\a Not applicable. 




                                        Table II.3
                         
                             Sampling Errors for Estimates of
                         Reported Food Stamp Benefit Increases in
                                  the Absence of the Cap

                                         Reported
Measure of benefit increase              in                     Value      Sampling error
---------------------------------------  --------  ------------------  ------------------
Average percent of monthly increase in   Text                   11.9%                1.2%
 benefits for affected households in
 absence of cap
Average monthly increase in food stamp   Text                     $31               $6.12
 benefit for affected households in
 absence of cap
Average monthly food stamp benefit in    Text                    $292               $6.12
 absence of cap for affected households
Average monthly food stamp benefit in    Text                    $303               $5.92
 absence of cap for affected households
 with children
Average monthly food stamp benefit in    Text                    $140              $14.64
 absence of cap for affected households
 without children
Average monthly increase in food stamp   Text                     $41               $3.28
 benefit in the absence of the cap for
 affected households in the Northeast
Average monthly increase in food stamp   Text                     $32               $1.76
 benefits in the absence of the cap for
 affected urban households
Average monthly increase in food stamp   Text                     $25               $2.84
 benefits in the absence of the cap for
 affected rural households
Percent of affected food stamp           Text                   53.9%                4.4%
 households located in four states--
 California, Michigan, New York, and
 Pennsylvania
Percent of food stamp households not     Text                   26.0%                1.6%
 affected by the cap in four states--
 California, Michigan, New York, and
 Pennsylvania
Average monthly increase in food stamp   Fig. 9          See app. III        See app. III
 benefits in the absence of cap for
 affected households by state
Average percent increase in total food   Text                    1.9%                 .4%
 stamp benefits for fiscal year 1995 in
 absence of the cap
Average monthly increase in total value  Text           $34.7 million        $6.8 million
 of food stamp benefits for fiscal year
 1995 in absence of the cap
Total increase in value of food stamp    Text            $417 million       $81.6 million
 benefit for fiscal year 1995 in
 absence of the cap
Increase in value of food stamp benefit  Text            $400 million       $1.66 million
 for fiscal year 1995 in absence of the
 cap for households with children
Percent increase to affected households  Text                   95.9%                2.0%
 with children
Percent of additional benefits that      Text                   80.0%                3.2%
 would have gone to 10 states
Percent of additional benefits going to
 each of 10 states with largest share
 of increase in benefits in absence of
 cap
New York                                 Table 4                32.3%                7.6%
California                               Table 4                17.2%                6.0%
Michigan                                 Table 4                 5.4%                1.6%
Massachusetts                            Table 4                 4.7%                1.6%
Pennsylvania                             Table 4                 4.2%                2.0%
Washington                               Table 4                 3.9%                1.2%
Texas                                    Table 4                 3.3%                2.4%
New Jersey                               Table 4                 3.2%                1.2%
Florida                                  Table 4                 3.1%                1.6%
Connecticut                              Table 4                 2.7%                0.8%
-----------------------------------------------------------------------------------------


                                        Table II.4
                         
                            Sampling Errors for Other Reported
                                        Estimates

                                         Reported
Measure                                  in                  Estimate      Sampling error
---------------------------------------  --------  ------------------  ------------------
Average monthly food stamp benefit       Text                    $172               $2.00
Percent of all children receiving food   Text                   17.0%                1.6%
 stamps living in households affected
 by the excess shelter expense
 deduction cap
Percent of total food stamp benefits
 provided in each of 10 states in table
 4
New York                                 Table 4                 8.5%                1.2%
California                               Table 4                11.1%                1.6%
Michigan                                 Table 4                 3.7%                0.4%
Massachusetts                            Table 4                 1.5%                0.4%
Pennsylvania                             Table 4                 4.4%                0.8%
Washington                               Table 4                 1.9%                0.4%
Texas                                    Table 4                10.2%                1.2%
New Jersey                               Table 4                 2.2%                0.4%
Florida                                  Table 4                 5.6%                0.8%
Connecticut                              Table 4                 0.8%               <0.1%
-----------------------------------------------------------------------------------------

--------------------
\3 Characteristics of Food Stamp Households Summer 1994, Apr.  29,
1996, Mathematica Policy Research, Inc. 


DETAILED INFORMATION ON HOUSEHOLDS
RECEIVING FOOD STAMPS AFFECTED BY
THE CAP ON EXCESS SHELTER EXPENSE
DEDUCTION
========================================================= Appendix III



                                                                                     Table III.1
                                                                       
                                                                           Characteristics of All Affected
                                                                             Households, Fiscal Year 1995

                                                                                                                             Average         Average
                                                                Average           Average    Average         Average         monthly         monthly         Average           Total
                             Number           Percent           monthly           monthly    monthly         monthly            food      food stamp         monthly         monthly
Type of                          of                of             gross               net     earned         shelter           stamp         benefit        increase        increase
household                households        households            income            income     income            cost         benefit       if no cap       if no cap       if no cap
-----------------  ----------------  ----------------  ----------------  ----------------  ---------  --------------  --------------  --------------  --------------  --------------
====================================================================================================================================================================================
All                       1,115,583             100.0              $643              $225       $219            $618            $261            $292             $31     $34,756,405
With children             1,041,022              93.3              $651              $233       $214            $621            $271            $303             $32     $33,353,695
With children               572,957              51.4              $653              $235       $207            $615            $280            $311             $31     $17,907,630
 under age 5
Headed by single            707,497              63.4              $616              $204       $168            $608            $256            $287             $31     $22,231,131
 female with
 children
One member                   50,848               4.6              $506               $92       $249            $574             $88            $104             $17        $843,637
Two members                 267,139              23.9              $548              $139       $175            $587            $170            $195             $25      $6,633,540
Three members               330,347              29.6              $617              $200       $202            $606            $245            $276             $31     $10,316,071
Four members                266,613              23.9              $691              $269       $226            $635            $306            $342             $36      $9,594,907
Five or more                200,636              18.0              $784              $355       $291            $668            $394            $431             $37      $7,368,250
 members
With noncitizens            203,158              18.2              $711              $292       $238            $678            $273            $314             $40      $8,220,108
With earned                 361,623              32.4              $813              $286       $677            $617            $245            $274             $29     $10,590,368
 income
With gross income         1,115,583             100.0              $643              $225       $219            $618            $261            $292             $31     $34,756,405
With net income           1,115,583             100.0              $643              $225       $219            $618            $261            $292             $31     $34,756,405
 Geographic
 location
Northeast                   418,346              37.5              $613              $215       $146            $688            $243            $284             $41     $17,296,018
Midwest                     201,254              18.0              $604              $181       $218            $556            $286            $309             $23      $4,553,028
South                       184,173              16.5              $720              $231       $514            $566            $286            $309             $23      $4,250,349
West                        311,811              28.0              $664              $263       $144            $595            $255            $283             $28      $8,657,010
Rural                       124,883              11.2              $629              $191       $301            $565            $280            $305             $25      $3,149,607
Urban                       990,419              88.8              $645              $229       $209            $624            $259            $291             $32     $31,596,511
Unknown urban/                  282               0.0              $672              $228       $347            $596            $301            $338             $36         $10,287
 rural

Benefit level
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
25% or less than              2,680               0.2            $1,096              $653       $388            $870             $48            $104             $55        $147,943
 maximum
25% to 50% of                53,028               4.8            $1,035              $519       $725            $739            $113            $151             $38      $2,004,789
 maximum
50% to 75% of               281,674              25.2              $845              $394       $367            $687            $241            $281             $40     $11,334,275
 maximum
Above 75% of                778,202              69.8              $542              $142       $131            $584            $279            $307             $27     $21,269,397
 maximum

Gross income as percentage of poverty
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
25% or less of                2,220               0.2              $427               $51        $60            $422            $602            $609              $7         $15,684
 poverty level
25% to 50% of               386,170              34.6              $510              $132        $64            $577            $337            $364             $26     $10,127,107
 poverty level
50% to 75% of               518,676              46.5              $631              $234       $142            $628            $241            $274             $33     $17,302,894
 poverty level
Above 75% of                208,517              18.7              $922              $377       $701            $669            $167            $202             $35      $7,310,719
 poverty level
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                                     Table III.2
                                                                       
                                                                           Characteristics of All Affected
                                                                        Households with Children, Fiscal Year
                                                                                         1995

                                                                                                                             Average         Average
                                                                Average           Average    Average         Average         monthly         monthly         Average           Total
                             Number           Percent           monthly           monthly    monthly         monthly            food      food stamp         monthly         monthly
Type of                          of                of             gross               net     earned         shelter           stamp         benefit        increase        increase
household                households        households            income            income     income            cost         benefit       if no cap       if no cap       if no cap
-----------------  ----------------  ----------------  ----------------  ----------------  ---------  --------------  --------------  --------------  --------------  --------------
====================================================================================================================================================================================
All                       1,041,022             100.0              $651              $233       $214            $621            $271            $303             $32     $33,353,695
With children               572,957              55.0              $653              $235       $207            $615            $280            $311             $31     $17,907,630
 under age 5
Headed by single            707,497              67.9              $616              $204       $168            $608            $256            $287             $31     $22,231,131
 female with
 children
One member                    4,582               0.4              $499              $118        $92            $626             $82            $103             $20         $92,041
Two members                 242,128              23.3              $544              $138       $160            $588            $171            $196             $25      $6,041,468
Three members               327,063              31.4              $617              $200       $199            $607            $244            $276             $31     $10,257,030
Four members                266,613              25.6              $691              $269       $226            $635            $306            $342             $36      $9,594,907
Five or more                200,636              19.3              $784              $355       $291            $668            $394            $431             $37      $7,368,250
 members
With noncitizen             193,656              18.6              $719              $301       $234            $684            $279            $320             $41      $8,026,132
With earned                 326,046              31.3              $832              $300       $684            $625            $259            $289             $30      $9,836,745
 income
With gross income         1,041,022             100.0              $651              $233       $214            $621            $271            $303             $32     $33,353,695
With net income           1,041,022             100.0              $651              $233       $214            $621            $271            $303             $32     $33,353,695

Geographic location
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Northeast                   379,729              36.5              $626              $228       $144            $695            $255            $299             $44     $16,613,212
Midwest                     192,910              18.5              $605              $183       $210            $558            $293            $316             $23      $4,382,935
South                       169,535              16.3              $729              $237       $524            $569            $300            $324             $23      $3,973,650
West                        298,848              28.7              $667              $269       $130            $599            $261            $289             $28      $8,383,898
Rural                       115,887              11.1              $632              $195       $292            $568            $293            $318             $26      $2,964,570
Urban                       924,853              88.8              $653              $238       $204            $628            $269            $301             $33     $30,378,839
Unknown urban/                  282               0.0              $672              $228       $347            $596            $301            $338             $36         $10,287
 rural

Benefit level
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
25% or less than              2,680               0.3            $1,096              $653       $388            $870             $48            $104             $55        $147,943
 maximum
25% to 50% of                43,549               4.2            $1,084              $568       $722            $772            $124            $165             $41      $1,766,731
 maximum
50% to 75% of               264,590              25.4              $860              $408       $367            $696            $250            $292             $41     $10,892,036
 maximum
Above 75% of                730,202              70.1              $547              $148       $128            $585            $288            $316             $28     $20,546,985
 maximum

Gross income as percentage of poverty
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
25% or less of                2,220               0.2              $427               $51        $60            $422            $602            $609              $7         $15,684
 poverty level
25% to 50% of               381,968              36.7              $511              $133        $65            $579            $339            $365             $26     $10,077,374
 poverty level
50% to 75% of               483,690              46.5              $644              $246       $145            $630            $248            $283             $35     $16,757,229
 poverty level
Above 75% of                173,144              16.6              $979              $418       $740            $693            $183            $220             $38      $6,503,408
 poverty level
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                                     Table III.3
                                                                       
                                                                           Characteristics of All Affected
                                                                        Households, by State, Fiscal Year 1995

                                                                                                              Averag
                                                                                                      Averag       e                               Average
                                                                                                           e  monthl                               monthly
                                                               Number                                 monthl       y     Average         Total        food
             Number   Percent    Number   Average                  of   Average   Average    Average       y  shelte     monthly       monthly       stamp     Average         Total
                 of        of        of  househol    Number  children   monthly   monthly    monthly  shelte       r        food          food     benefit     monthly       monthly
           househol  househol  individu         d        of     under     gross       net     earned       r  deduct       stamp         stamp          if    increase      increase
State            ds        ds       als      size  children     age 5    income    income     income    cost     ion     benefit       benefit      no cap   if no cap     if no cap
---------  --------  --------  --------  --------  --------  --------  --------  --------  ---------  ------  ------  ----------  ------------  ----------  ----------  ------------
====================================================================================================================================================================================
All        1,115,58     100.0  3,744,57       3.4  2,330,04   797,274      $643      $225       $219    $618    $231        $261  $291,397,717        $292         $31   $34,756,405
                  3                   2                   1
Alabama       6,148       0.6    22,678       3.7    14,717     4,326      $757      $228       $625    $533    $231        $289    $1,776,184        $305         $16       $98,620
Alaska          632       0.1     1,749       2.8     1,017       441      $871      $227        $65    $802    $402        $289      $182,990        $309         $20       $12,551
Arizona      11,536       1.0    48,033       4.2    32,496    11,206      $669      $214       $403    $581    $231        $331    $3,815,751        $354         $23      $267,245
Arkansas      2,132       0.2     6,865       3.2     3,922       972      $676      $169       $554    $506    $231        $268      $572,201        $284         $15       $32,629
Californi   214,685      19.2   710,751       3.3   450,100   144,775      $667      $284        $75    $592    $231        $239   $51,324,086        $267         $28    $5,986,991
 a
Colorado      9,743       0.9    36,231       3.7    23,716     8,035      $749      $251       $546    $609    $231        $285    $2,778,736        $313         $28      $270,914
Connectic    21,598       1.9    64,749       3.0    41,451    15,816      $665      $279        $98    $667    $231        $216    $4,656,798        $258         $43      $923,053
 ut
Delaware      1,517       0.1     5,872       3.9     3,830     1,206      $723      $258       $478    $626    $231        $293      $444,547        $320         $27       $41,331
District      1,834       0.2     6,633       3.6     4,563     2,483      $551      $176        $51    $514    $231        $296      $543,223        $315         $19       $33,974
 of
 Columbia
Florida      41,296       3.7   152,809       3.7    95,653    27,229      $762      $270       $533    $603    $231        $275   $11,348,593        $301         $26    $1,083,373
Georgia      19,446       1.7    65,262       3.4    41,045    13,148      $648      $200       $337    $551    $231        $268    $5,206,482        $291         $23      $446,423
Guam             80       0.0       368       4.6       256        62    $1,121      $363       $841    $798    $280        $525       $41,930        $577         $53        $4,207
Hawaii        2,472       0.2     8,281       3.3     5,053     1,958      $831      $263       $244    $745    $330        $471    $1,164,905        $501         $29       $72,700
Idaho         2,109       0.2     7,296       3.5     4,400     1,234      $657      $198       $407    $538    $231        $276      $582,037        $297         $21       $43,299
Illinois     21,225       1.9    84,466       4.0    57,443    14,807      $574      $162       $243    $550    $231        $332    $7,048,842        $351         $19      $395,348
Indiana       7,895       0.7    32,969       4.2    21,706     7,216      $729      $202       $493    $565    $231        $335    $2,644,983        $360         $25      $194,940
Iowa          6,100       0.5    19,793       3.2    11,974     3,837      $621      $182       $278    $530    $231        $266    $1,621,420        $285         $20      $119,371
Kansas        6,527       0.6    24,403       3.7    15,783     5,233      $580      $156       $269    $523    $231        $314    $2,050,159        $333         $18      $120,390
Kentucky      2,312       0.2     9,085       3.9     5,102     1,411      $575      $143       $337    $471    $231        $334      $771,179        $349         $16       $35,949
Louisiana     7,064       0.6    25,199       3.6    15,444     4,441      $644      $187       $405    $543    $231        $291    $2,052,433        $309         $18      $130,323
Maine         9,461       0.8    30,836       3.3    18,227     5,864      $656      $225       $274    $649    $231        $253    $2,396,657        $292         $39      $367,614
Maryland     10,966       1.0    41,928       3.8    27,178     7,942      $592      $162       $265    $547    $231        $319    $3,499,573        $341         $22      $236,749
Massachus    36,209       3.2   113,366       3.1    73,129    30,839      $643      $255       $103    $679    $231        $234    $8,471,913        $279         $45    $1,635,446
 etts
Michigan     84,502       7.6   271,395       3.2   169,763    62,802      $584      $173       $156    $557    $231        $265   $22,361,451        $287         $22    $1,866,148
Minnesota    18,648       1.7    61,289       3.3    39,433    13,987      $669      $241       $224    $593    $231        $250    $4,659,329        $280         $30      $561,812
Mississip     3,278       0.3     9,833       3.0     5,773     2,174      $704      $162       $514    $496    $231        $251      $821,125        $268         $17       $57,299
 pi
Missouri      9,507       0.9    33,806       3.6    21,026     7,089      $645      $175       $434    $537    $231        $291    $2,762,213        $311         $20      $192,840
Montana       2,470       0.2     8,792       3.6     5,183     1,400      $636      $206       $249    $546    $231        $282      $697,605        $305         $23       $56,027
Nebraska      2,337       0.2     8,125       3.5     5,040     1,581      $600      $151       $318    $508    $231        $295      $689,384        $314         $19       $43,328
Nevada        3,648       0.3    13,670       3.7     8,657     3,508      $767      $275       $472    $654    $231        $278    $1,014,321        $312         $34      $124,862
New           2,281       0.2     6,988       3.1     4,248     1,507      $585      $189       $159    $514    $231        $247      $563,713        $267         $19       $44,298
 Hampshire
New          32,913       3.0   125,570       3.8    81,947    22,760      $602      $188       $232    $649    $231        $311   $10,250,705        $345         $34    $1,118,531
 Jersey
New           3,457       0.3    12,610       3.6     7,428     2,878      $614      $170       $331    $533    $231        $304    $1,049,517        $322         $18       $63,829
 Mexico
New York    247,847      22.2   723,503       2.9   424,153   166,415      $607      $214       $122    $725    $231        $227   $56,191,311        $272         $45   $11,233,878
North         6,043       0.5    21,702       3.6    12,131     5,300      $682      $217       $495    $548    $231        $285    $1,721,418        $302         $18      $106,296
 Carolina
North         1,559       0.1     5,758       3.7     3,491     1,312      $767      $276       $639    $594    $231        $272      $423,696        $300         $29       $44,497
 Dakota
Ohio         23,887       2.1    99,336       4.2    67,432    16,749      $562      $151       $191    $544    $231        $348    $8,324,503        $371         $22      $528,494
Oklahoma      7,049       0.6    25,198       3.6    15,123     4,677      $646      $178       $418    $504    $231        $294    $2,075,047        $309         $15      $102,269
Oregon       10,384       0.9    37,105       3.6    21,989     8,500      $712      $254       $428    $591    $231        $270    $2,804,815        $294         $24      $252,894
Pennsylva    54,343       4.9   192,104       3.5   116,720    39,785      $596      $179       $223    $583    $231        $289   $15,725,088        $316         $27    $1,471,359
 nia
Rhode         7,280       0.7    23,004       3.2    14,661     5,715      $561      $168       $110    $591    $231        $262    $1,910,511        $292         $29      $214,254
 Island
South         2,815       0.3     9,487       3.4     5,745     1,383      $670      $185       $535    $503    $231        $273      $767,435        $289         $16       $45,676
 Carolina
South         1,120       0.1     3,724       3.3     2,359       930      $733      $234       $516    $578    $231        $255      $285,194        $280         $26       $28,640
 Dakota
Tennessee    13,785       1.2    49,784       3.6    32,149    10,703      $721      $226       $473    $550    $231        $283    $3,897,302        $305         $23      $312,550
Texas        45,632       4.1   179,847       3.9   111,378    32,526      $784      $259       $688    $577    $231        $299   $13,634,542        $324         $25    $1,142,593
Utah          4,168       0.4    16,003       3.8     9,974     3,768      $745      $272       $482    $591    $231        $288    $1,199,443        $314         $26      $109,534
Vermont       6,415       0.6    19,828       3.1    11,315     4,432      $709      $300       $216    $673    $231        $217    $1,389,066        $261         $45      $287,584
U.S.            453       0.0     1,653       3.7     1,002       453      $786      $317       $640    $526    $171        $360      $162,892        $390         $31       $13,853
 Virgin
 Islands
Virginia     10,730       1.0    38,333       3.6    23,558     6,670      $739      $244       $530    $600    $231        $272    $2,915,693        $299         $28      $295,927
Washingto    45,098       4.0   155,623       3.5    94,625    36,926      $592      $197       $148    $606    $231        $278   $12,517,278        $308         $30    $1,361,459
 n
West          2,124       0.2     7,384       3.5     4,449       622      $670      $202       $494    $546    $231        $277      $588,843        $300         $23       $48,368
 Virginia
Wisconsin    17,946       1.6    60,320       3.4    39,007    15,519      $632      $216       $173    $562    $231        $264    $4,746,181        $290         $25      $457,221
Wyoming         876       0.1     3,178       3.6     2,075       716      $691      $210       $475    $533    $231        $288      $252,475        $307         $19       $16,645
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                                     Table III.4
                                                                       
                                                                           Characteristics of All Affected
                                                                         Households with Children, by State,
                                                                                   Fiscal Year 1995

                                                                                                              Averag
                                                                                                      Averag       e
                                                                                                           e  monthl
                                                               Number                                 monthl       y     Average         Total
             Number   Percent    Number   Average                  of   Average   Average    Average       y  shelte     monthly       monthly     Average     Average         Total
                 of        of        of  househol    Number  children   monthly   monthly    monthly  shelte       r        food          food     monthly     monthly       monthly
           househol  househol  individu         d        of     under     gross       net     earned       r  deduct       stamp         stamp     benefit    increase      increase
State            ds        ds       als      size  children     age 5    income    income     income    cost     ion     benefit       benefit   if no cap   if no cap     if no cap
---------  --------  --------  --------  --------  --------  --------  --------  --------  ---------  ------  ------  ----------  ------------  ----------  ----------  ------------
====================================================================================================================================================================================
All        1,041,02     100.0  3,638,43       3.5  2,330,04   797,274      $651      $233       $214    $621    $231        $271  $282,351,404        $303         $32   $33,353,695
                  2                   1                   1
Alabama       6,148       0.6    22,678       3.7    14,717     4,326      $757      $228       $625    $533    $231        $289    $1,776,184        $305         $16       $98,620
Alaska          632       0.1     1,749       2.8     1,017       441      $871      $227        $65    $802    $402        $289      $182,990        $309         $20       $12,551
Arizona      11,238       1.1    47,593       4.2    32,496    11,206      $670      $216       $397    $581    $231        $336    $3,780,609        $360         $23      $261,609
Arkansas      1,958       0.2     6,516       3.3     3,922       972      $675      $162       $568    $508    $231        $280      $548,226        $296         $16       $31,846
Californi   205,694      19.8   697,920       3.4   450,100   144,775      $671      $291        $60    $597    $231        $244   $50,243,381        $272         $28    $5,805,267
 a
Colorado      9,608       0.9    35,961       3.7    23,716     8,035      $750      $252       $544    $609    $231        $287    $2,757,318        $315         $28      $265,391
Connectic    21,296       2.1    64,340       3.0    41,451    15,816      $666      $281        $99    $667    $231        $217    $4,628,330        $260         $43      $912,440
 ut
Delaware      1,395       0.1     5,628       4.0     3,830     1,206      $720      $260       $454    $634    $231        $306      $427,501        $334         $28       $38,888
District      1,511       0.2     6,177       4.1     4,563     2,483      $557      $192         $0    $521    $231        $333      $503,058        $353         $20       $30,723
 of
 Columbia
Florida      37,021       3.6   147,305       4.0    95,653    27,229      $788      $288       $563    $611    $231        $294   $10,885,674        $321         $27    $1,003,661
Georgia      16,794       1.6    61,819       3.7    41,045    13,148      $652      $203       $325    $555    $231        $296    $4,966,461        $319         $23      $384,233
Guam             80       0.0       368       4.6       256        62    $1,121      $363       $841    $798    $280        $525       $41,930        $577         $53        $4,207
Hawaii        2,359       0.2     8,055       3.4     5,053     1,958      $827      $264       $222    $744    $330        $480    $1,132,964        $510         $29       $69,450
Idaho         1,901       0.2     7,089       3.7     4,400     1,234      $672      $211       $403    $550    $231        $296      $562,636        $317         $21       $40,822
Illinois     20,938       2.0    83,894       4.0    57,443    14,807      $573      $163       $240    $551    $231        $334    $7,000,169        $353         $19      $392,771
Indiana       7,719       0.7    32,793       4.2    21,706     7,216      $729      $202       $488    $565    $231        $341    $2,635,123        $366         $24      $188,602
Iowa          5,577       0.4    19,010       3.4    11,974     3,837      $624      $187       $254    $536    $231        $279    $1,554,764        $299         $20      $112,211
Kansas        6,203       0.6    24,011       3.9    15,783     5,233      $577      $156       $248    $524    $231        $326    $2,020,946        $344         $18      $112,695
Kentucky      2,312       0.2     9,085       3.9     5,102     1,411      $575      $143       $337    $471    $231        $334      $771,179        $349         $16       $35,949
Louisiana     6,174       0.6    23,630       3.8    15,444     4,441      $664      $202       $421    $542    $231        $309    $1,905,874        $327         $18      $110,867
Maine         8,637       0.8    29,562       3.4    18,227     5,864      $661      $230       $264    $652    $231        $266    $2,299,925        $306         $40      $343,143
Maryland     10,278       1.0    40,552       3.9    27,178     7,942      $591      $159       $269    $546    $231        $330    $3,396,126        $352         $21      $220,269
Massachus    35,844       3.4   112,816       3.1    73,129    30,839      $645      $256       $104    $679    $231        $235    $8,426,272        $280         $45    $1,621,235
 etts
Michigan     82,389       7.9   266,867       3.2   169,763    62,802      $585      $174       $156    $558    $231        $267   $21,976,708        $289         $22    $1,811,955
Minnesota    18,256       1.8    60,640       3.3    39,433    13,987      $667      $241       $213    $594    $231        $253    $4,617,413        $283         $30      $552,330
Mississip     2,803       0.3     9,200       3.3     5,773     2,174      $734      $175       $536    $507    $231        $273      $764,212        $291         $18       $51,443
 pi
Missouri      7,895       0.8    31,981       4.1    21,026     7,089      $662      $191       $421    $549    $231        $330    $2,603,343        $352         $23      $178,039
Montana       2,421       0.2     8,693       3.6     5,183     1,400      $637      $208       $243    $543    $231        $284      $688,603        $307         $23       $54,543
Nebraska      2,190       0.2     7,878       3.6     5,040     1,581      $602      $151       $322    $509    $231        $306      $669,111        $324         $18       $39,743
Nevada        3,367       0.3    13,317       4.0     8,657     3,508      $776      $281       $473    $660    $231        $295      $992,168        $328         $34      $113,804
New           2,223       0.2     6,931       3.1     4,248     1,507      $588      $191       $164    $511    $231        $251      $558,938        $270         $19       $42,457
 Hampshire
New          32,265       3.1   124,716       3.9    81,947    22,760      $601      $188       $228    $646    $231        $316   $10,189,816        $349         $34    $1,085,007
 Jersey
New           3,025       0.3    11,747       3.9     7,428     2,878      $622      $182       $299    $544    $231        $320      $969,369        $339         $19       $57,456
 Mexico
New York    216,690      20.8   682,551       3.1   424,153   166,415      $629      $235       $125    $740    $231        $241   $52,290,706        $291         $50   $10,761,978
North         5,793       0.6    21,202       3.7    12,131     5,300      $691      $225       $496    $552    $231        $288    $1,670,619        $306         $18      $104,044
 Carolina
North         1,441       0.1     5,605       3.9     3,491     1,312      $772      $278       $652    $596    $231        $288      $415,377        $317         $28       $40,817
 Dakota
Ohio         21,898       2.0    96,385       4.4    67,432    16,749      $558      $152       $166    $545    $231        $369    $8,088,932        $391         $22      $475,087
Oklahoma      6,545       0.6    24,075       3.7    15,123     4,677      $650      $179       $425    $506    $231        $303    $1,983,393        $317         $14       $93,923
Oregon        9,179       0.9    35,510       3.9    21,989     8,500      $717      $263       $407    $599    $231        $294    $2,697,522        $319         $25      $228,392
Pennsylva    49,793       4.8   186,055       3.7   116,720    39,785      $591      $180       $193    $586    $231        $307   $15,291,657        $334         $27    $1,363,036
 nia
Rhode         7,070       0.7    22,794       3.2    14,661     5,715      $562      $167       $113    $589    $231        $268    $1,897,543        $297         $29      $202,978
 Island
South         2,292       0.2     8,689       3.8     5,745     1,383      $678      $195       $513    $505    $231        $307      $703,073        $323         $16       $37,267
 Carolina
South         1,074       0.1     3,678       3.4     2,359       930      $738      $239       $512    $582    $231        $262      $281,636        $288         $26       $27,751
 Dakota
Tennessee    12,554       1.2    47,927       3.8    32,149    10,703      $724      $225       $476    $552    $231        $301    $3,782,846        $324         $23      $290,602
Texas        44,417       4.3   176,762       4.0   111,378    32,526      $783      $257       $690    $577    $231        $303   $13,437,650        $328         $25    $1,122,915
Utah          3,997       0.4    15,775       3.9     9,974     3,768      $749      $276       $480    $596    $231        $296    $1,183,590        $323         $27      $107,535
Vermont       5,911       0.6    19,046       3.2    11,315     4,432      $726      $317       $208    $685    $231        $223    $1,318,345        $271         $48      $280,940
U.S.            426       0.0     1,573       3.7     1,002       453      $800      $327       $645    $537    $171        $361      $153,731        $393         $32       $13,746
 Virgin
 Islands
Virginia      9,560       0.9    36,695       3.8    23,558     6,670      $742      $249       $508    $605    $231        $294    $2,808,825        $322         $28      $271,498
Washingto    44,073       4.2   153,833       3.5    94,625    36,926      $592      $198       $140    $605    $231        $281   $12,368,256        $311         $30    $1,332,868
 n
West          1,978       0.2     7,238       3.7     4,449       622      $678      $211       $489    $555    $231        $291      $575,651        $315         $24       $46,902
 Virginia
Wisconsin    17,331       1.7    59,368       3.4    39,007    15,519      $634      $218       $172    $565    $231        $270    $4,674,521        $296         $26      $450,935
Wyoming         846       0.1     3,148       3.7     2,075       716      $694      $213       $470    $536    $231        $296      $250,210        $315         $19       $16,258
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



                                       Table III.5
                         
                          Sampling Errors for Selected Monetary
                         Amounts Presented in Table III.1 for All
                          Affected Households, Fiscal Year 1995

                                                                                  Average
                                                                                  monthly
                  Average     Average     Average     Average       Average    food stamp
Type              monthly     monthly     monthly     monthly       monthly    benefit if
of                  gross         net      earned     shelter    food stamp            no
household          income      income      income        cost       benefit           cap
-------------  ----------  ----------  ----------  ----------  ------------  ------------
=========================================================================================
All                 13.32       10.32       21.96        8.56          5.88          6.12
With children       13.80       10.68       22.68        8.88          5.72          5.92
With children       18.44       14.08       30.36       11.88          7.76          8.04
 under age 5
Headed by           14.44       10.72       23.56       10.56          6.24          6.40
 single
 female with
 children
One member          42.48       27.56      106.36       37.96          7.88          6.80
Two members         20.36       14.12       38.48       18.24          4.32          3.60
Three members       20.32       14.04       37.12       14.52          4.36          4.28
Four members        27.56       20.88       46.36       16.84          6.44          6.60
Five or more        35.92       29.12       61.64       20.72         11.24         11.56
 members
With                44.28       35.20       74.56       28.84         18.00         18.80
 noncitizens
With earned         24.56       19.40       32.60       13.52         10.24         10.44
 income
With gross          13.32       10.32       21.96        8.56          5.88          6.12
 income
With net            13.32       10.32       21.96        8.56          5.88          6.12
 income

Geographic location
-----------------------------------------------------------------------------------------
Northeast           22.60       18.00       34.88       16.16          9.92         10.88
Midwest             24.96       17.92       39.44       12.64         11.08         11.40
South               39.44       28.28       64.88       19.32         17.84         18.04
West                24.20       20.40       36.56       14.56         10.40         11.12
Rural               28.44       20.00       50.68       16.72         14.20         14.44
Urban               14.96       11.68       24.36        9.64          6.48          6.80
Unknown            366.48      261.60      825.28      222.04        139.04        162.12
 urban/rural

Benefit level
-----------------------------------------------------------------------------------------
25% or less        279.72      255.64      399.48      150.80         24.96         60.88
 than maximum
25% to 50% of       73.48       57.64      145.40       39.96         12.72         14.84
 maximum
50% to 75% of       24.76       18.16       57.76       16.72         10.68         11.56
 maximum
Above 75% of         9.16        6.64       18.24        9.28          6.64          7.04
 maximum

Gross income as percentage of poverty
-----------------------------------------------------------------------------------------
25% or less         58.28       47.08      162.04       75.12         96.88         99.64
 of poverty
 level
25% to 50% of       10.88       10.44       17.08       12.64          7.56          8.24
 poverty
 level
50% to 75% of       16.00       14.36       27.16       13.32          6.88          7.88
 poverty
 level
Above 75% of        33.24       27.32       56.00       19.92          9.52         10.24
 povery level
-----------------------------------------------------------------------------------------



                                       Table III.6
                         
                          Sampling Errors for Selected Monetary
                         Amounts Presented in Table III.2 For All
                            Affected Households with Children,
                                     Fiscal Year 1995

                                                                                  Average
                  Average     Average     Average     Average       Average       monthly
Type              monthly     monthly     monthly     monthly       monthly    food stamp
of                  gross         net      earned     shelter    food stamp       benefit
household          income      income      income        cost       benefit     if no cap
-------------  ----------  ----------  ----------  ----------  ------------  ------------
=========================================================================================
All                 13.80       10.68       22.68        8.88          5.72          5.92
With children       18.44       14.08       30.36       11.88          7.76          8.04
 under age 5
Headed by           14.44       10.72       23.56       10.56          6.24          6.40
 single
 female with
 children
One member         175.32      154.36      347.64      133.48         34.00         33.64
Two members         21.32       14.76       39.44       19.40          4.52          3.68
Three members       20.36       14.04       37.08       14.56          4.36          4.28
Four members        27.56       20.88       46.36       16.84          6.44          6.60
Five or more        35.92       29.12       61.64       20.72         11.24         11.56
 members
With                45.52       35.92       76.96       29.24         18.00         18.60
 noncitizens
With earned         25.96       20.52       35.32       14.28         10.12         10.24
 income
With gross          13.80       10.68       22.68        8.88          5.72          5.92
 income
With net            13.80       10.68       22.68        8.88          5.72          5.92
 income

 Geographic
 location
Northeast           23.44       18.56       36.36       16.72          9.56         10.24
Midwest             25.88       18.56       40.24       13.04         10.80         11.12
South               41.68       29.92       68.24       20.48         17.44         17.60
West                25.04       20.96       36.64       14.88         10.16         10.88
Rural               30.08       21.04       52.76       17.28         13.60         13.80
Urban               15.48       12.04       25.12        9.96          6.28          6.56
Unknown            366.48      261.60      825.28      222.04        139.04        162.12
 urban/rural

Benefit level
-----------------------------------------------------------------------------------------
25% or less        279.72      255.64      399.48      150.80         24.96         60.88
 than maximum
25% to 50% of       79.64       58.04      174.28       39.12         12.32         13.92
 maximum
50% to 75% of       24.92       17.68       60.72       16.92         10.20         10.96
 maximum
Above 75% of         9.40        6.76       18.64        9.56          6.44          6.80
 maximum

Gross income as percentage of poverty
-----------------------------------------------------------------------------------------
25% or less         58.28       47.08      162.04       75.12         96.88         99.64
 of poverty
 level
25% to 50% of       10.96       10.48       17.24       12.68          7.52          8.20
 poverty
 level
50% to 75% of       16.16       14.48       28.32       13.72          6.64          7.60
 poverty
 level
Above 75% of        32.80       28.16       62.28       21.16          9.60         10.08
 poverty
-----------------------------------------------------------------------------------------



                                       Table III.7
                         
                          Sampling Errors for Selected Monetary
                          Amounts of All Affected Households, by
                         State, Presented in Table III.3, Fiscal
                                        Year 1995

                                                                                  Average
                    Average       Average         Average         Average         monthly
                    monthly       monthly         monthly         monthly      food stamp
                      gross           net          earned         shelter         benefit
State                income        income          income            cost       if no cap
-------------  ------------  ------------  --------------  --------------  --------------
=========================================================================================
All                   13.32         10.32           21.96            8.56            5.88
Alabama              190.28        127.84          295.20           67.84           91.88
Alaska               105.64        115.92          266.36           85.32           90.80
Arizona              116.36         80.08          202.04           53.88           51.60
Arkansas             168.20        112.80          255.92           69.92           69.72
California            57.96         52.72           68.84           37.80           23.88
Colorado             104.68         71.92          179.52           48.72           38.76
Connecticut           54.12         44.96           73.08           35.92           18.44
Delaware             261.12        192.68          355.80          101.08           92.92
District of           96.80        108.68          159.60           86.60          119.60
 Columbia
Florida              117.28         82.64          184.80           55.52           51.68
Georgia              107.12         76.04          183.20           57.08           56.84
Guam                 507.00        287.44          899.52          245.64          142.76
Hawaii               130.84        100.76          261.56           83.36           66.04
Idaho                134.68        107.64          214.68           66.84           71.88
Illinois             123.80         99.84          194.32           77.60           48.16
Indiana              155.84         81.16          265.88           73.88           75.28
Iowa                  88.04         60.84          143.20           40.80           39.64
Kansas                88.28         64.76          149.20           42.12           46.16
Kentucky             125.36         99.40          290.56           81.80           97.68
Louisiana            127.24        118.36          223.88           69.08           73.00
Maine                 72.60         51.36          125.80           43.28           31.64
Maryland             118.84         78.64          194.24           61.84           56.48
Massachusetts         50.20         40.96           81.52           39.48           20.40
Michigan              46.60         33.52           67.16           21.48           17.48
Minnesota             77.72         58.28          123.16           38.36           28.00
Mississippi          213.12        104.48          328.56           64.20           94.40
Missouri             153.08         99.60          252.00           72.48           83.84
Montana              116.84         87.80          203.96           66.96           57.76
Nebraska             123.24         63.36          223.16           46.36           47.96
Nevada               171.68        118.96          311.52           75.72           67.36
New Hampshire         67.12         49.12          178.12           49.96           62.92
New Jersey            79.28         56.16          130.84           44.76           32.92
New Mexico           134.96         99.12          232.00           62.56           71.48
New York              54.56         44.12           79.20           38.08           21.80
North                216.72        157.60          342.52          108.48           68.68
 Carolina
North Dakota         202.28        139.88          399.04           95.44           89.60
Ohio                 123.32         90.44          189.64           72.60           64.60
Oklahoma             129.40         83.96          217.28           51.72           62.76
Oregon               104.72         77.24          165.40           48.32           41.68
Pennsylvania          78.24         60.12          135.92           47.20           40.24
Rhode Island          58.80         46.00           92.64           41.96           32.52
South                167.60         95.60          297.72           59.56          125.00
 Carolina
South Dakota         237.20        152.40          378.36          121.24           88.92
Tennessee            134.80         91.64          247.60           52.64           63.44
Texas                124.08         95.44          189.92           65.64           53.28
Utah                 122.28         89.48          204.64           59.08           50.28
Vermont               84.92         65.40          141.24           50.96           28.80
U.S. Virgin          247.88        191.56          388.16          124.76          110.60
 Islands
Virginia             151.12        120.84          244.44           79.04           75.04
Washington            46.40         36.84           70.08           28.96           17.68
West Virginia        225.44        192.60          329.08          139.88          119.04
Wisconsin             42.72         31.24           68.04           21.96           17.76
Wyoming              149.20        110.52          266.12           69.72           95.92
-----------------------------------------------------------------------------------------



                                       Table III.8
                         
                          Sampling Errors for Selected Monetary
                         Amounts of All Affected Households With
                          Children, by State, Presented in Table
                                 III.4, Fiscal Year 1995

                                                                                  Average
                    Average       Average         Average         Average         monthly
                    monthly       monthly         monthly         monthly      food stamp
                      gross           net          earned         shelter         benefit
State                income        income          income            cost       if no cap
-------------  ------------  ------------  --------------  --------------  --------------
=========================================================================================
All                   13.80         10.68           22.68            8.88            5.72
Alabama              190.28        127.84          295.20           67.84           91.88
Alaska               105.64        115.92          266.36           85.32           90.80
Arizona              118.88         81.48          206.44           55.32           50.32
Arkansas             182.16        121.32          257.04           76.12           67.32
California            59.96         53.80           65.24           38.60           23.04
Colorado             105.84         72.68          181.48           49.24           38.80
Connecticut           54.40         45.12           74.04           36.32           18.28
Delaware             276.92        203.56          375.16          101.48           92.12
District of          111.96        111.96            0.00          100.48           99.52
 Columbia
Florida              123.20         87.12          194.84           58.68           51.04
Georgia              121.24         85.68          200.20           63.76           53.00
Guam                 507.00        287.44          899.52          245.64          142.76
Hawaii               136.44        104.56          266.48           87.32           63.72
Idaho                145.48        115.76          233.56           69.96           70.12
Illinois             125.56        101.28          196.56           78.48           47.96
Indiana              159.48         83.04          271.36           75.64           72.44
Iowa                  94.16         64.36          148.92           42.92           38.00
Kansas                92.68         68.04          152.08           43.76           43.24
Kentucky             125.36         99.40          290.56           81.80           97.68
Louisiana            134.96        130.00          238.08           75.80           72.68
Maine                 77.48         54.32          132.64           45.24           30.72
Maryland             124.84         80.04          205.36           64.24           55.04
Massachusetts         50.56         41.20           82.28           39.80           20.32
Michigan              47.64         34.28           68.28           21.92           17.44
Minnesota             78.68         59.00          122.56           38.84           27.64
Mississippi          236.56        117.48          365.12           69.52           94.20
Missouri             181.92        116.84          297.88           81.48           79.68
Montana              119.20         89.20          206.32           67.20           58.36
Nebraska             129.72         66.84          231.56           46.20           43.96
Nevada               183.64        127.36          333.72           75.00           63.80
New Hampshire         67.80         49.64          181.92           50.36           62.20
New Jersey            80.72         57.24          132.64           44.72           31.96
New Mexico           153.32        110.88          258.92           68.00           75.32
New York              58.88         46.96           87.72           40.28           21.64
North                223.72        161.04          357.68          111.56           70.16
 Carolina
North Dakota         215.92        149.64          424.32          102.48           87.40
Ohio                 132.92         97.88          193.08           78.92           54.56
Oklahoma             137.92         89.44          227.64           55.44           64.12
Oregon               113.12         83.12          175.84           50.12           37.20
Pennsylvania          83.28         64.64          137.56           49.60           35.76
Rhode Island          60.36         47.16           95.24           42.04           31.12
South                200.56        109.88          360.48           70.44          131.48
 Carolina
South Dakota         247.12        158.20          395.16          125.40           86.84
Tennessee            141.52         96.84          257.12           55.00           57.12
Texas                124.80         96.44          189.64           67.36           53.56
Utah                 125.52         92.00          210.12           60.56           48.44
Vermont               87.52         65.72          148.00           52.68           29.16
U.S. Virgin          256.92        199.48          411.92          124.52          117.44
 Islands
Virginia             166.40        132.84          269.40           84.76           72.72
Washington            47.28         37.52           70.36           29.48           17.40
West Virginia        239.16        203.24          351.72          145.36          115.16
Wisconsin             43.76         31.88           69.40           22.24           17.04
Wyoming              154.40        114.04          275.24           71.40           94.08
-----------------------------------------------------------------------------------------

MAJOR CONTRIBUTORS TO THIS REPORT
========================================================== Appendix IV

Thomas E.  Slomba, Assistant Director
Andrea Wamstad Brown, Project Leader
Mitchell B.  Karpman
Carol Herrnstadt Shulman


*** End of document. ***