Publication Library

Browse by tag

referendum c state budget tabor fmap recovery act 2010 colorado legislature health reform medical loss ratio taxes jobs and economic security transparency and accountability revenue annual report colorado center on law and policy snap food stamps health coverage health affordability earned income tax credit children health law and policy update child tax credit exempla hospitals colorado benefits management system public benefits weston v hammons election 2010 poverty health insurance work supports self-sufficiency standard jobs and economy unemployment insurance health access mental health high-risk pool health co-ops pre-existing conditions medicaid aiming for the middle gallagher amendment amendment 23 public option 2009 colorado legislature grandfathered health plans cobra health insurance exchange income 2007 colorado legislature arveschoug-bird tobacco securitization federal budget rainy day fund refund anticipation loans 2008 colorado legislature welfare reform colorado works deficit reduction act citizenship referendum d 2010 colorado legislatutre old age pension tax credits tax exemptions tax deductions provider rates state of working colorado government election 2008 education income tax single sales factor state children's health insurance program social security early retiree reinsurance program hospital provider fee insurance access sustainable growth rate formula recission prescription drugs medicare false claims act colorado all-payer health claims database insurance affordability 2011 colorado legislature election 2011 immigration child health plan plus health law and policy refugees family economic security economic self-sufficiency hospital conversion sidebar newsletter elder economic security long-term care accountable care collaborative 2012 colorado legislature

Sign Up

Receive email updates

Thanks To Our
Generous Donors Like:

The Denver Foundation

Increased money for food stamps has helped Colorado families and boosted the economy

In the throes of the Great Recession, the federal Recovery Act of 2009 bolstered food stamps in Colorado with a two-year, $180 million increase in funding. That additional money provides much-needed food to families, as well as a healthy economic boost to local economies. Once spent, the additional $180 million for food will generate an estimated $221 million in economic activity and some 1,508 jobs statewide as dollars spent in grocery stores work their way through other parts of the economy. All this is in addition to normal food stamp benefits.

Food stamps in Colorado
The food stamps program is the nation’s largest and most comprehensive nutrition program. Officially known as the Supplemental Nutritional Assistance Program or SNAP, it helps low-income people buy food. Nationally, SNAP helps almost 40 million people every month. In Colorado, some 400,000 people use food stamps.i That number has increased by 61 percent, or 151,000 people since the national recession began in December 2007.ii (Figure 1.)

 

The American Reinvestment and Recovery Act
The American Reinvestment and Recovery Act, often called the Recovery Act or Stimulus Package, was designed to bolster the economy and insulate families from the recession. Signed in February 2009, the Recovery Act will bring $7.1 billion to Colorado by the end of 2010. Those funds come in the form of tax relief for working families and businesses, direct aid to struggling families, and loans and grants for more than 140 programs.iii

From the total stimulus money for Colorado, $180 million will bolster SNAP,iv a 13.6 percent increase. The additional money will be distributed from April 2009 to December 2010, and amounts to an average monthly increase of $40 in the food budget of a Coloradan using food stamps.v

SNAP stimulus
The additional money for SNAP included in the federal Recovery Act was designed to ease the pain of the recession by providing additional help buying food to families in need and by creating a local economic boost. As the money is spent, dollars circulate through the economy, generating the jobs and output. That or multiplier effect can be estimated using information about the composition and dynamics of a local economy. (See methodology.)

The Colorado Fiscal Policy Institute analyzed the economic effect of additional SNAP funding for the state as a whole and for several Colorado counties. Overall, the Recovery Act’s boost to SNAP will generate an estimated $221 million in economic activity in Colorado and 1,508 jobs. In other words, the additional $180 million for families to buy food translates into $221 million in commerce and an additional 1,580 jobs; first as that food is produced, distributed, and sold, and second as proceeds from sales are re-spent in other areas of the economy. Not surprisingly, the employment generated is concentrated around food supply industries. (Figure 2.)

 

The Recovery Act boost to SNAP in select Colorado counties
SNAP funding goes to county programs for distribution to individuals and families who need help buying food. As such, the food assistance program has a truly local effect. Naturally, Recovery Act funding levels vary with the size and need of counties. However, the local employment resulting from additional SNAP funding is notable, even in the smaller counties. (Figure 3.) The top industries affected in each county are largely similar to those listed for the state as a whole, so are not shown. Again, the economic impacts listed are for the Recovery Act’s added funding for SNAP only, and are in addition to the economic activity generated in the normal operation of the program.

 

SNAP in Colorado by the numbers

  • Colorado food stamp households receive, on average, $1.46 per person per meal in SNAP benefits.vii
  • About 80 percent of food stamp benefits go to households with children. Most of the rest go to households with elderly people or people with disabilities.viii
  • Almost 90 percent of food stamp households have income of less than the federal poverty level. The rest have income slightly above the poverty level, but their basic expenses are high enough to make them eligible for a small SNAP benefit.ix
  • 398,862 Coloradans used food stamps to buy food in February 2010. That amounts to 7.9 percent of the people in Colorado.x
  • During the current, Great Recession, SNAP participation in Colorado increased dramatically. Since the onset of the recession in December 2007, enrollment has grown by 151,087 people, or 61 percent.
  • The Recovery Act allocated an additional $180 million for SNAP in Colorado, to be distributed from April 2009 through December 2010. That translates into an average monthly increase of $40 for the food budgets of Colorado families enrolled in SNAP.
  • This $180 million will also generate an estimated $221 million in economic activity and 1,508 jobs in Colorado, as food purchases infuse dollars into local economies.

Contact: Alec Harris
Policy analyst
303-573-5669 ext. 316

 

Methodology and end notes
Estimates for economic output and employment gains from increased SNAP funding are created using IMPLAN (IMpacts for PLANning) economic impact modeling software. The software uses empirically-derived regional input-output accounting to enable modeling of local industry changes. For more information on this software, see the IMPLAN website: http://implan.com/v3/.

Recovery Act funding for SNAP is modeled as an increase in personal consumption expenditures and an increase in state and local government administration. To model these changes, programmatic and administrative funding levels are established for each geography. In cases where complete funding levels are not reported, estimates are derived using to-date consumption of funding. (See note iv.) Results are shown in 2010 dollars.

i Enrollment figures listed are for February 2010. U.S. Department of Agriculture SNAP program data. http://www.fns.usda.gov/

iiAnalysis of U.S. Department of Agriculture SNAP program data. http://www.fns.usda.gov/

iii “The American Recovery and Reinvestment Act: The Colorado Story.” Colorado Governor’s Economic Recovery Team. April 30, 2010. www.colorado.gov/recovery

iv Specifically $179,750,468 for food stamps, and $2,446,293 for food stamp administration. U.S. Department of Agriculture Food and Nutrition Services. http://www.fns.usda.gov/fns/recovery/recovery-snap.htm

v “The Colorado Story,” Colorado Governor’s Economic Recovery Team.

vi Total ARRA SNAP funds represent the sum of programmatic and administrative funds. In each county and in the state as a whole, administrative funds represent less than 2 percent total funding. County Reports, Colorado Governor’s Economic Recovery Team, May 2010. Also: Personal Communication, Colorado Governor’s Economic Recovery Team, May 26, 2010.

vii USDA posts the average monthly benefit by state at: http://www.fns.usda.gov/pd/18SNAPavg$PP.htm. The benefit per meal is arrived at by dividing this number by 90 (90 meals per month).

viii “Characteristics of Food Stamp Households, Fiscal Year 2004,” Table A-1, United States Department of Agriculture, Office of Analysis, Nutrition, and Evaluation, August 2005. http://www.fns.usda.gov/oane/MENU/Published/FSP/FILES/Participation/2004Characteristics.pdf.

ix Ibid.

x “Nearly 39.7 Million Americans Received SNAP/Food Stamps in February 2010.” Current News and Analyses, Food Research and Action Center. February 2010. http://www.frac.org/html/news/fsp/2010.02_FSP.htm.

 

View PDF Document