FY 2005 Allocations of 15% Exemptions for ABAWDs and Reporting Guidance

For FY 2005, we are providing you with 2 lists of 15 percent ABAWD exemptions. We are also providing guidance on reporting procedures for the FNS-583 form for the portion dedicated to ABAWD information.

FY 2005 15 Percent ABAWD Exemptions (unadjusted):

Attachment A is a list of state-by-state 15 percent ABAWD exemptions for FY 2005. 7 CFR 273.24 authorizes the Food and Nutrition Service to adjust the number of 15 percent exemptions allocated to each State at the beginning of the fiscal year to reflect changes in the States’ caseloads and our estimate of changes in the proportion of food stamp recipients covered by waivers.

We are no longer providing the charts that showed the allowable per case-month exemptions by State and the number of persons that can be exempted if no time limit was placed on exemptions; if a three-month time limit was placed on exemptions; and if a 6-month time limit was placed on exemptions. We believe these charts caused confusion and were not widely understood or used by States.

FY 2005 15 Percent ABAWD Exemptions (adjusted for FY 2004 carryover):

Attachment B is the list of adjusted FY 2005 adjusted case-month exemptions. These figures include the number of 15 percent exemptions used by States that were reported in their final FY 2004 FNS-583 reports.

Based on our calculations, four states [Arizona, Illinois, Kansas, and South Carolina] used more exemptions than they were allotted in FY 2004. When we added their negative numbers from FY 2004 to the FY 2005 exemptions, the adjusted amounts were a negative number. Therefore, these states have no 15 percent exemptions for FY 2005. Please notify these states that they must immediately cease granting ABAWD exemptions in areas that are not exempt by an ABAWD waiver.

The following states have not submitted their final FY 2004 FNS 583 reports: California, Idaho, Montana, Nevada, and Oklahoma. As soon as we receive these reports we will send you an updated 15 percent exemption list.

FNS-583 Report Guidance

We are taking this opportunity to provide guidance to States regarding the quarterly FNS-583 report. There seems to be some confusion over the 15 percent ABAWD exemptions and how to report them on the quarterly FNS-583 report. We believe the regulation is very clear - “The State agency will track the number of exemptions used each month and report this number to the regional office on a quarterly basis as an addendum to the quarterly Employment and Training Report (Form FNS-583) required by 7 CFR 273.7(c)(8).” [7 CFR 273.24(i)] The intent of the regulation is that States monitor their monthly usage of 15 percent exemptions and report this information to FNS on a regular basis.

Background

The Food Stamp Act of 1977 (FSA), as amended, allows States to exempt up to 15 percent of unemployed ABAWDS from the 3-month time limit. The FSA grants FNS the authority to determine the number of yearly exemptions for each State. If, by the end of a fiscal year, a State did not use all its ABAWD exemptions, it may carry over the balance into the next fiscal year. If more exemptions are used than authorized in a fiscal year, the State’s allocation for the next fiscal year will be reduced.

When we implemented the 15 percent exemptions, we stressed that the ABAWD population is dynamic; its members will cycle on and off the Program, and/or in and out of ABAWD status for a variety of reasons. Based on FNS analysis of the longitudinal data from the Survey of Income and Program Participation (SIPP), we created a statistical model that determined the average ABAWD who reaches the 3-month time limit would likely remain on the Program an additional 2.66 months if granted an exemption. However, the 2.66 month estimate is just that – an estimate. The actual amount of time an average ABAWD may remain on the Program may vary according to State conditions and State policy choices. Therefore, when a State agency makes a determination that an ABAWD qualifies for a 15 percent exemption, it must also take into account the total number of months the individual will participate under the exemption.

For example, a State is allocated 1,200 case months for a fiscal year. In October, the State grants exemptions to 100 ABAWDS who reach the 3-month time limit in that month and who are not otherwise eligible to continue participation in the Program. These ABAWDS will, on average, need that exemption for three months – October, November, and December.

When the State sends in its quarterly FNS-583 report, it should report that it used 100 exemptions for October, 100 exemptions for November, and 100 exemptions for December. However, some States would report this situation differently; they would report using 100 exemptions for October and then zero exemptions for November and December. They incorrectly believe they must report the number of actions taken in a month because the State agency acted to exempt 100 ABAWDS in October for 3 months. This is an incorrect interpretation of the FNS-583 reporting requirements. The State agency is actually
under-reporting the number of 15 percent exemptions used. Moreover, the State agency is applying a 15 percent exemption to a month the individual is already exempt.

Current situation of 15 percent exemption usage:

In the first quarter of the current fiscal year, the Certification Policy Branch (CPB) sends out a list of 15 percent case month exemptions allocated to each State for that year. This list is meant to guide States in planning how many ABAWDS they can exempt in a year. This list is in no way a substitute for the requirement that State agencies track actual use of the 15 percent exemptions.

We are hearing from Regions that a growing number of States are using up their case month exemptions in the first quarter of the fiscal year. We must emphasize again that State agencies must ration their case month exemptions so there are enough exemptions available to use in each month of the fiscal year. Once a State uses up its annual allocation, we ask that they cease from granting additional exemptions. If a State decides to continue to exempt ABAWDS after reaching its annual exemption allocation, we will deduct any “overage” from the next fiscal year’s allocation.

We suggest States visit the ABAWD section of our website to review the various memorandums posted there. The website is http://www.fns.usda.gov/fsp/rules/memo/PRWORA/abawds/ABAWDsPage.htm .

We also ask that you continue to work with your States in this important program area.

Please contact Patricia Maggi (703) 305-2468 if you have any questions.


/s/

Patrick Waldron
Chief
Certification Policy Branch
Program Development Division

 

Attachments
  -- FY 2005 Allowable per Case-Month Exemptions by State
  -- FY 2005 ADJUSTED CASE-MONTH EXEMPTIONS BY STATE

Attachment A

FY 2005 Allowable per Case-Month Exemptions by State
UNADJUSTED FOR CARRY-OVER

*   Average monthly case-months allowed.
** Assumes the dynamic of a typical ABAWD FSP recipient remaining on program for 2.66 months with no time limit.

For planning purposes ONLY. States need to count their exempted case months.
96 CWEP Adj. does not take into account states providing work opportunities through the E&T program

Attachment B

FY 2005 ADJUSTED CASE-MONTH EXEMPTIONS BY STATE
(Includes FY 2004 carryover)

** No 4th quarter data.

Last modified: 11/21/2008