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Food, Nutrition, and Consumer Services
Statement of Roberto Salazar, Administrator
Food and Nutrition Service
Before the Subcommittee on Agriculture, Rural Development,
Food and Drug Administration and Related Agencies
March 28, 2006
Thank you, Mr. Chairman, and
members of the Subcommittee for allowing me this opportunity to present
testimony in support of the fiscal year 2007 budget request for the Food
and Nutrition Service (FNS).
FNS is the agency charged with
administering the fifteen Federal nutrition assistance programs which
create the Nation’s nutrition safety net and providing Federal
leadership in America’s ongoing struggle against hunger and poor
nutrition. Our stated mission is to increase food security, reduce
hunger and improve health outcomes in partnership with cooperating
organizations by providing children and low-income people access to
nutritious food and nutrition education in a manner that inspires public
confidence and supports American agriculture. The budget request clearly
demonstrates the President’s continuing commitment to this mission and
our programs as well as strengthens the Federal nutrition assistance
safety net in a time of competing priorities and limited resources.
Balancing program access, good
nutrition, and program integrity, this budget makes tough choices to
meet our key commitments:
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To ensure that low-income
people have access to food by ensuring sufficient funding for the
major nutrition assistance programs.
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To promote healthful diets and
active lifestyles by making nutrition education an integral part of
nutrition assistance programs
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To manage prudently and
efficiently so that every dollar invested has the maximum positive
benefit for those truly in need
A request of $57 billion in new
budget authority is contained within the fiscal year 2007 budget to
fulfill this mission through the FNS nutrition assistance programs.
These critical programs touch the lives of more than 1 in 5 Americans
over the course of a year. Programs funded within this budget request
include the National School Lunch Program (NSLP), which will provide
nutritious school lunches to 30.9 million children each school day, the
WIC Program, which will assist with the nutrition and health care needs
of 8.2 million at risk pregnant and postpartum women, infants and
children each month, and the Food Stamp Program (FSP), which will ensure
access to a nutritious diet each month for an estimated 25.9 million
people. The remaining programs include the School Breakfast Program (SBP),
the Summer Food Service Program (SFSP), the Child and Adult Care Food
Program (CACFP), The Emergency Food Assistance Program (TEFAP), the Food
Distribution Program on Indian Reservations (FDPIR) and the Farmers’
Market Programs.
We are proposing, with this budget
request, the elimination of the Commodity Supplemental Food Program (CSFP).
The priority of the Administration, as reflected in the President’s
budget request, is to ensure the continued integrity of the national
nutrition assistance safety net. CSFP is only available in limited
areas. It operates in parts of 32 States, two Indian Tribal
Organizations, and the District of Columbia. Its benefits and target
populations to a great extent, overlap with two of the largest
nationwide Federal nutrition assistance programs – Food Stamps and WIC.
FNS seeks to serve the children
and low-income households of this Nation. We believe the President’s
budget request, allows us to focus scarce resources on addressing the
diverse ways which hunger and nutrition-related problems present
themselves through the core programs of the nutrition safety net.
The resources we are here to
discuss represent an investment in the health, self-sufficiency, and
productivity of Americans who, at times, find themselves in need of
nutrition assistance. Under Secretary Bost, in his testimony, has
outlined the three critical challenges which the Food, Nutrition and
Consumer Services team has focused on under his leadership: promoting
access and awareness of the Federal nutrition assistance programs;
addressing the growing epidemic of obesity; and, improving the integrity
with which our programs are administered. In addition to these
fundamental priorities specific to our mission, the President’s
Management Agenda provides an ambitious agenda for management
improvement across the Federal government as a whole. I would like to
report on our efforts to address three specific items under this agenda:
reducing improper payments and enhancing the efficiency of program
delivery, building partnerships with faith and community-based
organizations, and systematically planning for the human capital
challenges facing all of the Federal service.
The Challenge of Improper
Payments
Good financial management is at
the center of the President’s Management Agenda. As with any Federal
program, the nutrition assistance programs require sustained attention
to program integrity. We cannot sustain these programs over the long
term without continued public trust in our ability to manage them
effectively. Program integrity is as fundamental to our mission as
program access or healthy eating. Our efforts to minimize improper
program payments focus on 1) working closely with States to improve food
stamp payment accuracy; 2) implementing policy changes and new oversight
efforts to improve school meals certification; and 3) improving
management of CACFP providers and vendors in WIC. We have identified
these 4 programs as ones susceptible to improper payments and will
continue to enhance the efficiency and accuracy with which these
programs are delivered.
I am happy to report that in
fiscal year 2004, the most recent year for which data is available, we
have achieved a record level of food stamp payment accuracy with a
combined payment accuracy rate of 94.12 percent. This is the sixth
consecutive year of improvement, making it the lowest rate in the
history of the program. With this budget request, we will continue our
efforts with our State partners toward continued improvement in the
payment accuracy rate. We will continue efforts to address the issue of
proper certification in the school meals programs in a way that improves
the accuracy of this process without limiting access of eligible
children. Analytical work has begun to better assess the accuracy of
eligibility determinations in the CACFP.
Faith-based and Community
Organizations Outreach
Faith-based and community
organizations have long played an important role in raising community
awareness about program services, assisting individuals who apply for
benefits, and delivering benefits. President Bush has made working with
these organizations an Administration priority, and we intend to
continue our outreach efforts in fiscal year 2007. The partnership of
faith-based and community organizations and FNS programs, including
TEFAP, WIC, CACFP and NSLP is long-established. Significant numbers of
faith-based schools participate in the NSLP and many child care
providers and sponsors are faith-based and community organizations. In
addition, the majority of food pantries and soup kitchens that actually
deliver TEFAP benefits are faith-based and community organizations.
Across the country, faith-based organizations have found over the years
that they can participate in these programs without compromising their
mission or values. They are valued partners in an effort to combat
hunger in America. I am happy to report we have provided eight grant
awards of approximately $2 million to community and faith-based
organizations to test innovative food stamp outreach strategies to reach
underserved, eligible individuals and families.
Human Capital Management
We currently estimate that up to
80 percent of our senior leaders are eligible to retire within five
years, as is nearly 30 percent of our total workforce. FNS must address
this serious challenge by improving the management of the agency’s human
capital, strengthening services provided to employees, and implementing
programs designed to improve the efficiency, diversity, and competency
of the work force. With just nominal increases for basic program
administration in most years, the FNS has reduced its Federal staffing
levels significantly over time.
We have now reached a critical
point within our agency staffing levels; we simply must have the ability
to develop the resources necessary to continue to assure appropriate
access to the agency programs while maintaining stellar integrity
outcomes. While we have compensated in the past by building strong
partnerships with the State and local entities which administer our
programs and taking advantage of technological innovations, the
President’s budget proposes the addition of 40 staff years to perform
fundamental program integrity activities for the Food Stamp Program.
It is also important that we have
the ability to conduct research on our programs and we ask that we not
be prohibited from doing so. We are extremely proud of what we have
accomplished. In order to continue to achieve improvements in program
integrity and program access; I believe full funding of the Nutrition
Program Administration (NPA) request in this budget is vital.
Now, I would like to review some
of the components of our request under each program area.
Food Stamp Program
The President’s budget requests
$37.9 billion for the Food Stamp account including the Food Stamp
Program and its associated nutrition assistance programs. These
resources will serve an estimated 25.9 million people each month
participating in the Food Stamp Program alone. Included in this request
is the continuation of the $3 billion contingency reserve provided for
the program in fiscal year 2006. While we anticipate improvement in the
general economy, the turning point of participation continues to be
challenging to predict.
To better meet this challenge, we
have proposed, as an alternative to the traditional contingency reserve,
indefinite funding authority for program benefits and payments to States
and other non-Federal entities. These contingency resources are
important to not only ensuring the availability of basic program
benefits, but also to ensuring that adequate funds are available in the
event of disasters. The Food Stamp Program is designed to respond, not
only to the economy but also to disaster-related food assistance needs.
Our recent experience with the Gulf Coast disasters made this very clear
when over $900 million in food stamp benefits have been issued to date
to over 1.9 million households affected by Hurricanes Katrina, Rita and
Wilma in the fall of 2005. In addition, we have made a concerted effort
to encourage working families, senior citizens and legal immigrants to
apply for benefits.
The President’s budget request
contains three legislative proposals for the Food Stamp Program. These
proposals work together to strengthen the national framework of the Food
Stamp Program by setting national standards that better target benefits
to low-income persons. They support the priorities of access and
nutrition assistance for those in need while ensuring integrity in the
program.
The budget proposes to exclude the
value of tax-preferred retirement accounts from the Food Stamp
certification asset test. This exclusion strengthens retirement security
policy and enables low-income people to get nutrition assistance without
depleting their retirement savings. It also simplifies food stamp
resource policy and makes it more equitable because under current law,
some retirement accounts are excluded while others are not. This
proposal is consistent with the President’s Ownership Society
Initiative, by increasing the ability of low-income people to save for
retirement.
Our budget once again proposes to
eliminate categorical Food Stamp eligibility for Temporary Assistance
for Needy Families (TANF) participants who receive only non-cash TANF
services. Fully implemented in fiscal year 2008, this change is
estimated to affect approximately 300,000 individuals and save $658
million over five years. We believe this proposal ensures that food
stamp benefits will go to the individuals with the most need and retains
categorical eligibility for the large number of recipients who receive
cash assistance through TANF, Supplemental Security Income and General
Assistance.
Also included in the budget is a
proposal to add the Food Stamp Program to the list of programs for which
States may access the National Directory of New Hires. Access to this
national repository of employment and unemployment insurance data will
enhance States’ ability to quickly and accurately make eligibility and
benefit level determinations, supporting continued program integrity.
The budget also requests a continuation of a policy included in last
year’s appropriations act to exclude special military pay received by
members of the armed forces serving in combat zones when determining
food stamp benefits for their families back home.
Finally, the Administration
remains committed to proposing a name change for the program to
Congress. We will continue the process that began in 2006 to gather
information related to a proposed name change for Congressional
consideration.
Child Nutrition Programs
The budget requests $13.6 billion
for the Child Nutrition Programs, which provide millions of nutritious
meals to children in schools and in childcare settings every day. This
level of funding will support an increase in daily NSLP participation
from the current 30.2 million children to approximately 30.9 million
children. Requested increases in these programs reflect rising school
enrollment, increases in payment rates to cover inflation, and
proportionately higher levels of meal service among children in the free
and reduced price categories. To ensure that Child Nutrition Programs
respond to unforeseen increases in participation, the request provides
$300 million in contingency funding. This contingency reserve would make
supplemental funding requests unnecessary at times of budgetary
shortfalls. Similar to the Food Stamp Program, such a shortfall could
result from larger than anticipated program participation growth,
responses to natural disasters or other national emergencies.
We are continuing to implement
program changes and new activities resulting from the 2004
reauthorization of these programs including the Fruit and Vegetable
Program. We are also continuing our efforts to promote healthy behaviors
by supporting the implementation of local wellness policies. We created
the HealthierUS Schools Challenge to encourage communities to improve
the foods offered at school and other aspects of a healthy school
nutrition environment and to recognize schools that made improvements.
FNS is continuing to integrate the
2005 Dietary Guidelines for Americans recommendations into the school
meal programs. By law, school meals are required to be consistent with
the Guidelines. Meals in the NSLP must provide one third of the
Recommended Dietary Allowances (RDAs), while meals in the School
Breakfast Program must provide one fourth of the RDAs. An FNS workgroup
is reviewing the new Guidelines as well as the Dietary Reference Intakes
(DRIs) nutrient standards to identify potential changes in the meal
patterns within the existing meal reimbursement structure.
The workgroup will make
recommendations based on its review. USDA will publish a proposed rule
with changes to the meal patterns and actively seek public comment.
Federal, State and local staff will work together to implement the new
requirements, plan improved recipes and menus, modify contracts to
obtain the needed ingredients or modified products, and train staff who
prepare and serve the food.
Special Supplemental Nutrition
Program for Women, Infants and Children (WIC)
The President’s budget request
includes $5.2 billion for the WIC Program. This request will provide
food, nutrition education, and a link to health care to a monthly
average of 8.2 million needy women, infants and children during fiscal
year 2007, including former CSFP participants.
The budget contains a two-part proposal that reflects our commitment to
both support core activities of the WIC Program and reduce Federal
discretionary spending. We are proposing to cap the level of Nutrition
Services and Administration (NSA) funding to no more than 25 percent of
the total WIC State grant amount for fiscal year 2007. We continue to
believe the reduction in NSA funding will not have a significant impact
on the delivery of core WIC services. States will be encouraged to work
with Federal program staff to seek efficiencies in the delivery of the
program to ensure that the reduction in NSA funding does not impact core
services.
Looking forward to fiscal year
2008, the budget proposes to replace this NSA cap with a 20 percent
State match requirement. WIC is currently one of the few Federal
programs that do not require State matching funds for administrative
purposes. The proposal is not effective until fiscal year 2008 so that
States are provided adequate notification to allow their legislatures to
appropriate funds.
The President’s budget request
contains a proposal which limits automatic (adjunctive) eligibility
based on participation in Medicaid to those individuals whose incomes
are below 250 percent of Federal poverty guidelines. In the WIC Program,
applicants can currently receive automatic (adjunctive) eligibility for
benefits based on their participation in other means-tested programs
such as the FSP and Medicaid. However, in some States, Medicaid permits
participation of individuals with incomes higher than those established
for eligibility for WIC (185 percent of the Federal poverty level). This
proposal will better target WIC benefits to those most in need and, if
enacted, the proposal will affect six States (California, Maryland,
Minnesota, Vermont, New Hampshire and Rhode Island).
The $125 million contingency fund
provided in the fiscal year 2003 appropriation and replenished in fiscal
year 2005, continues to be available to the program. We currently do not
anticipate using the reserve in either fiscal year 2006 or 2007, as
available resources in fiscal year 2006 and the President’s budget
request will fully meet our projected program need for those two years.
FNS is continuing its efforts to
review and consider revisions to the WIC food package. In September
2003, FNS contracted with the National Academies of Sciences’ Institute
of Medicine (IOM) to independently review the WIC food packages. The IOM
recommendations on the WIC Food Packages were published in a final
report in April, 2005. FNS has used these recommendations along with
comments received on the public notice soliciting comments on food
package changes to develop a proposed rule to update the WIC food
packages. This proposed rule is in clearance and is expected to be
published in late Spring 2006.
The President’s budget also
requests the continuation of the moratorium on the authorization of new
WIC-only stores. The current moratorium was put in place through the
fiscal year 2006 appropriations bill and will expire at the end of this
year. We believe it is important to continue this moratorium due to the
uncertainty that States encountered concerning the status of our
regulations implementing new management controls on WIC vendor
authorizations. This uncertainty arose as a consequence of a law suit
filed by the National Women, Infants, and Children Grocers Association
and the subsequent Temporary Restraining Order (TRO) issued by the
Federal District Court. Although the law suit was resolved in favor of
the government, States, particularly those covered by the TRO, were
delayed several months in moving ahead with the implementation of new
requirements. Therefore, to give States reasonable opportunity to put
into place approved plans effecting these new cost control requirements,
we believe continuation of the moratorium is prudent.
Commodity Supplemental Food
Program (CSFP)
CSFP serves elderly persons and at
risk low-income pregnant and post-partum and breastfeeding women,
infants and children up to age six. The budget does not request funding
for this program which is not available nationwide and duplicates two of
the Nations’ largest Federal nutrition assistance programs – Food Stamps
and WIC. This program operates in selected areas in just 32 States, the
District of Columbia, and two Indian Tribal Organizations. The
populations served by CSFP are eligible to receive similar benefits
through other Federal nutrition assistance programs that offer them
flexibility to meet their individual needs. The Administration has
proposed this change to better target limited resources to those major
programs that are available nationwide, promoting equity and
effectiveness.
The President’s budget does
include a request for funds to support the transition of CSFP
participants to nationally available FNS nutrition assistance programs
such as WIC and FSP. USDA will work closely with CSFP State agencies to
ensure that any negative effects on program participants are minimized.
We plan to implement a transition strategy to encourage those women,
infants and children that are eligible for WIC to apply for that
program, and to encourage elderly CSFP recipients to apply for the Food
Stamp Program.
The budget request includes $2
million to provide outreach and to assist individuals enrolling in the
FSP. Elderly participants who are leaving the CSFP upon the termination
of its funding and who are not already receiving FSP benefits will be
eligible to receive a transitional benefit of $20 per month. This
transition benefit will end in the first month following enrollment in
the FSP under normal program rules, or in 6 months, whichever occurs
first. CSFP women, infants, and children participants who are eligible
for WIC benefits will be referred to that program. Commodities obtained
under agriculture support programs that would be used to support CSFP
will be donated for use in other nutrition assistance programs, such as
TEFAP.
The Emergency Food Assistance
Program (TEFAP)
As provided for in the Farm Bill,
the budget requests $140 million for commodities in this important
program. Our request for States’ storage and distribution costs,
critical support for the Nation’s food banks, is $50 million. The Food
and Nutrition Service is committed to ensuring the continuing flow of
resources to the food bank community including directly purchased
commodities, administrative funding, and surplus commodities from USDA
market support activities. Much of this funding is provided, at the
local level, to faith-based organizations. Surplus commodity donations
significantly increase the amount of commodities available to the food
bank community from Federal sources.
Seniors’ Farmers Market
Nutrition Program (SFMNP)
The President’s budget request
includes two provisions that improve the value of the SFMNP benefits.
The first provision prohibits farmers selling eligible foods under the
SFMNP from charging sales tax on fresh fruits and vegetables that are
purchased using SFMNP checks or coupons, or that are provided to
eligible recipients through community supported agriculture. The second
provision ensures that the value of benefits provided to eligible
recipients is not considered as income in the process of determining
eligibility for any other Federal or State programs, such as food
stamps, TANF, energy assistance, and housing assistance. It would also
ensure that the value of the SFMNP benefit would not be considered as
income in calculating the recipients’ Federal or State tax obligations.
These proposals are consistent with the way benefits are treated in all
other Federal nutrition assistance programs.
Nutrition Programs
Administration (NPA)
We are requesting $160.4 million
in this account, an increase of $18.6 million over our fiscal year 2006
level. This increase will partially offset personnel-related costs of
the FNS workforce in fiscal year 2007. Our request for Federal
administrative resources is needed to sustain the program management and
support activities of our employees nationwide. The NPA account supports
both FNS’ administration of the nutrition assistance programs and CNPP’s
nutrition policy development and promotion activities targeted at the
general population. Specific requests for this account include $2
million to support continuing work on MyPyramid; $4 million to support
initiatives to improve program integrity within the Food Stamp Program
and $3 million to improve the coordination of nutrition education
efforts across all of the our programs.
Our request for $6 million to fund
critical research and evaluation activities examining program integrity
issues and ways to improve the delivery of program services is essential
to the management of our programs, as is the $3.5 million request to
fund FNS’ participation in Office of Management and Budget’s initiative
to modernize and better integrate financial management system across the
government. I firmly believe we need this increase in NPA funding in
order to maintain accountability for our $57 billion portfolio and to
assist States to effectively manage the programs and provide access to
all eligible people.
Thank you for the opportunity to
present this written testimony. |
