More than 305K SC households rely on this system. Why does DSS want to replace it?
More than 305,000 South Carolina households a month rely on a 34-year-old system to receive food assistance benefits. But the antiquated system badly needs to be replaced, the state Department Social Services says.
DSS uses an outdated mainframe system to determine Supplemental Nutrition Assistance Program, or SNAP, and Temporary Assistance for Needy Families eligibility in the state and to process payments to retailers when SNAP recipients buy groceries.
Because of the age of the system, which processes about $1.8 billion worth of SNAP payments each year, DSS cannot make updates or improvements, which poses “major risks to the state.”
“The outdated technology required to maintain the current legacy system no longer meets modern business (and) operational needs,” DSS wrote in its new state budget request.
DSS said upkeep for the current system is expensive and the programmers needed to maintain the mainframe are often not available.
In its budget request for the 2023-24 fiscal year, DSS asked for $8.7 million to start developing a new economic services system to process the SNAP and TANF benefits. By committing the state money to the project, DSS would get access to an additional $8.2 million of federal money to help start the work. More money would be needed in following years, as the project is expected to last until the 2025-26 fiscal year.
The total cost of replacing the current antiquated system is expected to be $60 million to $80 million, DSS said.
Updating the system will “improve client experience, operational efficiency, providing benefits in a more timely manner and improving overall program integrity measures,” DSS Director Michael Leach said in a statement.
A nationwide outage earlier this year highlighted what could happen in South Carolina if the state had a similar issue with its own system.
In August, a nationwide SNAP/EBT outage prevented SNAP recipients from using their EBT cards to pay for groceries.
The issue was caused by a “third party processor outage,” which affected programs in multiple states, including South Carolina DSS said.
The system was eventually restored hours later.
“It could be detrimental to people or families in need” if South Carolina had a problem with its system, said Sue Berkowitz, the director of Appleseed Legal Justice Center. “It helps the people who are going hungry, but it also helps our grocery stores. It allows them to have that foundation of knowing they are going to get paid.”
For several years, DSS has requested money to go pay for upgrades to its SNAP benefits system. The agency was in line to receive money for the project in the 2020-21 budget, but the COVID-19 pandemic wreaked havoc on the economy and revenue to the state. New spending was put on hold, as state lawmakers only agreed to give state agencies they amount of money they received the previous year.
DSS encourages SNAP recipients to buy fruits, vegetables
In addition to making sure SNAP recipients are able to use their benefits, DSS wants to incentivize low-income people to buy more fresh fruits and vegetables by continuing a program expected to run out of money in June.
DSS, in its budget request, asked for $5 million to continue its Healthy Bucks program, which helps provides access to fresh fruits and vegetables. The usage of the program increased since it started in 2014 and jumped significantly during the COVID-19 pandemic.
Under the program, SNAP recipients who use $5 in SNAP benefits to purchase fresh fruits and vegetables at participating vendors can get a coupon for an additional $15 in fruits and vegetables. The program is available in 30 counties at 49 farmers markets, roadside stands and bulk-buying co-ops. While helping low-income people eat healthier, the program supports farmers who grow produce in the state.
“In an agricultural state, that’s important,” said Meg Stanley, the executive director for Wholespire, a statewide organization that advocates for policies to increase access to healthier choices in communities.
The Healthy Bucks program started with $1.9 million federal money through a proviso pushed by now Senate President Thomas Alexander, R-Oconee, and the late state Sen. Clementa Pinckney.
Healthy Bucks usage
The number of clients and dollars spent in South Carolina’s Healthy Bucks program increased through 2021.
Number of Healthy Bucks Clients
2019: 12,170 clients
2020: 21,731 clients
2021: 43,031 clients
2022: 19,678 clients (As of Sept. 12)
Healthy Bucks money spent
2014: $3,432
2015: $31,089
2016: $47,262
2017: $62,160
2018: $81,860
2019: $121,700
2020: $264,985
2021: $500,750
2022: $196,780 (includes partial expenditures for August)
Source: Department of Social Services
This story was originally published November 30, 2022 at 10:10 AM.
