Recently, I heard of a Supplemental Nutrition Assistance Program recipient who used a month of food stamps on an electronic benefit transfer card to buy $400 worth of two-liter sodas.
The grocer followed the customer around the corner to see where the recipient was going with that many sodas. The customer took the sodas down the street to a mom and pop store to sell them at half price for cash. The store owner received half-priced sodas, the SNAP user received cash, and taxpayers received the bill for this illegal transaction.
Each year, our state and federal governments lose a substantial amount of money to fraudulent activities in SNAP, a program in which nearly one in seven Americans participates. In 2014, the valued cost of food stamps issued in Georgia was $2.8 billion, but due to fraud, fraudulent cases the state lost approximately $36 million. As legislators, we must monitor SNAP to ensure taxpayers’ dollars are not used in a wasteful, abusive or fraudulent manner.
For this reason, state Rep. Greg Morris and I worked on House Bill 772 during the 2014 General Assembly. The bill, signed into law by Gov. Nathan Deal in April, requires all food stamp EBT cards to contain a photo of one or more members of a household. HB 772 aims to reduce fraud by introducing new technologies to monitor, track and investigate those who abuse the system.
By implementing technologies such as photo IDs, we are working to recognize factors of fraud in the SNAP program, which has nearly doubled to 47.3 million recipients — almost 15 percent of the U.S. population — since 2006, according to CBS News.
The ambiguity of how these funds are fraudulently utilized makes it nearly impossible for regulators to track and monitor each instance. The U.S. Department of Agriculture estimates we lose about 1.3 percent annually due to underground food stamp trafficking. That’s down from 4 percent in the 1990s due to the introduction of EBT cards.
Many believe food stamp program fraud is more than 10 percent. If we could cut this rate in half through the implementation of photo EBT cards, this could save the state $60 million per year — an annual savings that more than justifies the $7.7 million one-time cost of the photo ID program.
Last but not least, I am aware a substantial majority of economically disadvantaged Georgians use this program correctly and as a means of temporary relief during hard times. According to benefits.gov, a Georgia family of four can qualify for the SNAP program if they make a maximum yearly income of $31,000. A primary provider can work day and night and still struggle to provide for a family of four on such a low income. Most Georgians registered with the program use these resources to put food on the table for their children and loved ones.
By reducing fraud, we not only ensure our hard-earned taxpayer dollars are spent responsibly, but strengthen the program and reduce the stigma for those who use the food stamp program correctly.
Fraud is an everyday occurrence in our country. Our federal and state governments should continuously work toward a solution to fraud. HB 772 is just one way our state is doing that.
State Sen. Don Balfour, a Republican, represents Georgia District 9.
