North Carolina counties are preparing to take on an estimated $52 million in additional administrative costs tied to the Supplemental Nutrition Assistance Program as federal funding for the food-stamp program declines.
SNAP serves roughly 1.4 million people across the state.
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The state and federal government used to split the cost of the program, but beginning in October, the federal reimbursement rate for administrative expenses will decrease from 50% to 25%, meaning states will be responsible for three-quarters of the cost of running the program.
County governments in North Carolina could see their share of the cost grow by about 32% to $69 million annually, according to officials.
Despite the decline in federal funding, North Carolina lawmakers didn’t include additional SNAP administrative funding in the newly passed state budget, leaving counties to absorb the additional expense.
Andrew Blackburn, the government relations manager for the North Carolina Association of County Commissioners said he spent months asking the General Assembly to provide funding to help cover the added costs to prevent counties from having to take money out of local services such as garbage and leaf removal.
“We don't hold it against the state that this additional fee came down,” Blackburn told WRAL in an interview on Tuesday. “We just think we aren't the best equipped to handle it.”
North Carolina lawmakers are pushing policies to cut taxes for North Carolinians. In May, lawmakers passed a constitutional amendment that seeks to restrict how much city and county governments can raise property taxes each year. The largest revenue source for counties is property taxes.
“It’s how we pay for trash pickup,” Blackburn said. “It’s how we pay for public safety. It’s going to be a conversation about whether we limit expenditures in other areas so we don’t have to raise taxes on residents. No county wants to raise taxes, but counties have to pay for this administrative increase.”
Spokespeople for Senate leader Phil Berger and House Speaker Destin Hall didn’t immediately respond to requests for comment.
Leaders of larger counties, such as Wak,e wonder how they will continue to cover the additional costs while maintaining services residents rely on.
“We’re going to ensure that we continue to do everything we can to provide those services for the people of Wake County,” Don Mial, chair of the Wake County Board of Commissioners, said Tuesday. “It’s too important to us as a board to make sure we’re representing the citizens of Wake County and providing those services.”
The state budget does include funding for several SNAP-related improvements, including $70,943 in ongoing funding to update the NC FAST benefits eligibility system to implement federal SNAP changes and help reduce payment errors.
It also provides $2.5 million in one-time funding to modernize NC FAST, including artificial intelligence-assisted eligibility tools and error screening, with up to $1.5 million available for a contract with the North Carolina Government Data Analytics Center.
The budget also provides $2.2 million in recurring funding for 25 positions within the state Department of Health and Human Services’ Division of Child and Family Well-Being to address SNAP payment errors.