From the Detroit News – http://www.detnews.com/apps/pbcs.dll/article?AID=2007702120364

Record 1 in 9 seek food stamps, other assistance

Charlie Cain / Detroit News Lansing Bureau

LANSING — A record 1.19 million Michiganians — nearly one of every nine residents — are getting government help in putting food on their tables, as a result of the state’s anemic economy and the massive downsizing of the domestic auto industry.

That’s the most recipients here in the program’s 40-year history and more than in all but five states. The cost of providing the food for struggling Michigan families soared to $1.24 billion last year, up 145 percent from just five years earlier.

And the government estimates that more than 300,000 additional Michiganians who are not receiving assistance would probably qualify for it, if they applied.

“We’ve seen a pretty steady climb since December 2000 and it’s gone up by a few thousand cases each and every month,” said Maureen Sorbet, spokeswoman for the Michigan Department of Human Services, which administers the program. “There must be a time when we reach the saturation point, but it’s difficult to determine when that will be.”

While food stamp use mushrooms, the number of people relying on nongovernment food banks, pantries and shelters for nutritional needs also is rising.

The Food Bank Council of Michigan says more than 1 million people got in excess of 75 million pounds of free food from charitable and religious groups last year.

Jane Marshall, the council’s executive director and a seasoned soldier in the war on hunger, said the situation is bleak.

“Our agencies say there is more demand, more working-poor families and more people who are coming in for the first time ever,” Marshall said.

“This year, I think demand could go up dramatically, and in places like Macomb County, Livingston County and other areas you wouldn’t think would have issues with resources. I don’t like doom and gloom, but things are getting worse.”

State Sen. Jason Allen, R-Traverse City, introduced legislation in Lansing recently to extend tax credits to people donating food to pantries and shelters. Currently, a taxpayer can receive a tax credit of up to $100 for cash contributions, but receives no credit for donating food items. Similar legislation failed to win approval last year and, given the state’s budget difficulties, the measure faces an uncertain future.

The federal government funds the food stamp program 100 percent and pays half the administrative costs. The remainder is covered by the states. In Michigan, that amounted to $93 million last year.

Last year, it cost more than $29 billion to feed 26 million people across the nation. Michigan trails just Texas, California, New York, Illinois and Florida in terms of both households and individuals receiving food stamps. Michigan ranks seventh in total cost.

Aid boost appreciated

Marilynn Hardin, an 81-year-old Detroit widow, swallowed her pride in November and applied for food assistance. She now gets a monthly allotment of $126.

“I didn’t want to put in for it at first, thinking ‘I’m managing.’ That’s what a lot of seniors do. We hate to feel we’re getting aid,” she said.

When told she was approved, Hardin was “surprised and very appreciative. I’m not a heavy eater, so it’s enough for me. I still use my coupons out of the newspaper.

“And with the help, instead of buying two cartons of yogurt, I can buy the whole eight-pack. It’s really made a difference.”

Belinda Dawson, a 42-year-old Detroiter, has been receiving food assistance for almost a year following open heart surgery. Her $200 monthly allotment was trimmed to $60 after she started to collect an $800 monthly disability check in August.

She said the food money isn’t enough to cover the entire bill; she dips into money that should be paying for her many medications to buy food.

“The food assistance helps because you don’t have to go into your pocket so much,” Dawson said. “But it’s still tough.”

Varied reasons for rise in use

Janet Cushman, food assistance program director in Michigan, said the food stamp program is intended to supplement rather than cover all food costs. The growth in recipients is the result of a number of factors, she said.

Michigan’s wobbly economy is a major factor, of course. The state’s December jobless rate of 7.1 percent trailed only Mississippi at 7.5 percent. Nationally, the unemployment rate was 4.5 percent.

But rule changes have also increased participation. For instance, Michigan got a waiver from the federal government three years ago to allow able-bodied adults without children to receive food assistance without time restrictions. Previously, the limit was three months.

While people call them food stamps, those getting assistance actually receive a “bridge card,” which resembles a credit card.

“That helped to eliminate some of the stigma where a person had to pay with coupons at the supermarket checkout line,” Cushman said.

A rule change in 2000 allowed people making up to 200 percent of the poverty level to receive food assistance. The old rule was 130 percent. Under 2007 U.S. Department of Health and Human Services poverty guidelines, that figure is $20,650 for a family of four.

Other changes dealt with assets and deductions.

For instance, owning a home and car are not factored in when deciding how much assistance a person can receive. And costs for health care, child support, shelter, utilities and medical expenses can be deducted from a family’s income when applying for help. Changes under consideration in Washington would not count an individual’s retirement and savings accounts as assets when determining food stamp eligibility.

Cushman said a family of four with a net monthly income of $800 after deductions could receive $278 in monthly food assistance. A family of four with a net monthly income of $1,500 could receive $68 a month. A homeless person with no income could get $155 a month.

Cushman said the state continues with outreach programs to encourage people to apply for food assistance. The federal government estimates that only 66 percent of those eligible in Michigan are actually receiving benefits.

“So there’s still a lot of room for growth” in recipients, she said.

You can reach Charlie Cain at (517) 371-3660 or ccain@detnews.com.