By Howard Fischer
Mail | X: @azcapmedia

PHOENIX — Gov. Katie Hobbs is tapping some federal funds she still has left from the 2020 through 2023 COVID outbreak to fix problems that have delayed food stamp and unemployment benefits for Arizonans, with some of these issues going back a year or more.

In a press release, Hobbs said the $7.5 million will address “staffing constraints” at the state Department of Economic Security. That includes everything from hiring 15 temporary workers specifically to expand the capacity of the agency to verify income of applicants.

The governor blamed at least part of the problem on federal budget cuts.
Those dollars are important because the federal government not only pays for benefits — which are untouched — but also picks up part of the cost of running the food stamp program, formally known as the Supplemental Nutrition Assistance Program.

DES officials said earlier this month that the number of workers who review food stamp eligibility dropped by 1,370 in July 2024 to 880 this past July.
And an agency spokesman said it was processing an estimated 54,000 new and renewal applications, of which 18,000 were taking more than 30 days.

As of November — when food stamp payments were delayed in a dispute with the Trump administration — DES estimated about 855,000 Arizonans were getting benefits, roughly one out of every eight people in the state. That includes about 347,000 children.

The average benefit is about $359 per household.

But there’s also another issue that has yet to hit Arizona.

Beginning in 2028, the Big Beautiful Bill approved earlier this year by Congress will make states with error rates higher than 6% pay a greater share of the administrative costs as well as fines. The most recent figure for Arizona puts the error rate here at 8.84%.

Hobbs called that part of “the partisan Washington budget.”

The governor said the additional staffing and improved payment accuracy will reduce that rate, which represents underpayments or overpayments, something she attributed to “miscalculation, typically due to fluctuations in the recipient’s income.”

While Hobbs said she is hoping for improvement, she also noted the national error rate is higher, at 10.93%.

Issues with unemployment benefits are related — but not directly tied — to the cut in federal dollars that are affecting food stamp benefits.
Data for the most recent week from DES shows new claims for benefits at more than 2,600, with another nearly 20,000 with ongoing claims.
But it also shows the agency went from answering more than 7,000 calls per week in September to fewer than 500 this month.

Gubernatorial press aide Christian Slater said the additional $7.5 million will help with that.

Overall, he said that money also will allow the agency to bring on 100 temporary contract workers to handle basic inquiries and complete “routine customer service functions,” freeing up regular DES staffers to handle more complex problems. But Slater had no immediate answer to how long those staffers would be available until the limited dollars run out.

DES did launch a new online platform in September called CACTUS where individuals can file first-time claims for jobless benefits as well as their necessary weekly updates which include things like certifying they have been looking for work.

In a prepared statement, the governor said she understands “the frustration Arizonans feel with these delays.”

“Families deserve stability, and I’m committed to ensuring they can access the support they need when they need it while protecting critical programs from further federal cuts,” her statement reads.