According to the Pittsburgh Tribune-Review, Pennsylvania will increase asset limits for residents to continue receiving benefits under the supplemental nutritional assistance plan (SNAP), more commonly known as food stamps. The decision to raise the threshold was made by Pennsylvania Gov. Tom Corbett and the state Welfare Department.
The PA Independent reported that the Department of Public Welfare is implementing the asset test after a 50 percent increase in the number of people receiving benefits over the last five years. As the Pittsburgh Post-Gazette reported, the preliminary levels required by the asset test came under fire from a number of groups including former Pennsylvania Governor Ed Rendell.
What were the limits when the asset test was first proposed?
The PA Independent reported the original limits for the asset test were listed at $2,000 for people under the age of 60 and $3,250 for anyone over 60. Although, as Philly.com reports, houses and retirement incomes were exempt from the asset test under both plans, items like savings accounts, stocks, and lump sum payments would be counted.
What are the new thresholds for the asset test?
According to a report from the Associated Press, Corbett's officials are going to increase the thresholds to $5,500 for residents under the age of 60 and increase the level for anyone 60 and older or with a disability to $9,000. The previous lower limits would have put Pennsylvania in line with the limits of federal law.
Why the change?
A report from the Pittsburgh Post-Gazette indicates that the levels were raised to account for inflation and cost of living. In addition, the lower levels presented a challenge because the $2,000 and $3,250 level represented property tax and incomes payments held in savings accounts for many people receiving food stamps. Plus, the Post-Gazette article reported that Just Harvest brought up the issue of people on food stamps losing benefits if they managed to save $2,000 would be counterproductive to getting folks off of the program.
How many other states have asset tests?
The Tribune-Review article mentions that 35 states do not impose an asset test on recipients of food stamps. The article also points out that Food Research and Action Center found that four states raised the minimum allowable amount to $5,000, which puts Pennsylvania a bit above the average.
Jason Gallagher is a long-time Pennsylvania resident. He has experiences in trends and developments in many regions from having lived in many parts of the Keystone State, and currently resides in the Pittsburgh Area.
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