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DSS briefs committee on SNAP cost shift, error‑rate mitigation and expanded Healthy Bucks
Summary
Department of Social Services Director Tony Catone presented a FY2027 request emphasizing child and family supports, foster care rate increases, SNAP administrative cost exposure from federal HR1, and expansion of the Healthy Bucks fresh‑produce incentive. He warned the state's SNAP administrative share will rise from 50% to 75% and outlined staffing and tech steps to lower the error rate.
Tony Catone, state director of the Department of Social Services, presented DSS’s FY2027 budget priorities and warned of a federal change that will shift more SNAP administrative costs to the state.
Catone described seven priorities. Priority 1 focuses on children and families: increased foster‑care and kinship rates tied to USDA Southeast cost estimates, expansion of therapeutic foster care and structured small homes, transitional day services and welcome centers for youth with behavioral health needs, and funding to continue a workload salary plan (Catone asked for the remaining ~$9.7 million previously requested to sustain retention improvements).
Priority 2 addressed SNAP. Catone said the federal HR1 reconciliation law will increase the state’s share of SNAP administrative costs from 50% to 75% beginning in federal FY2027, obligating an estimated $22 million to maintain current program operations. He said the change is federal policy, not a performance penalty, and outlined short‑ and medium‑term mitigation steps already underway and planned: a real‑time interface with the Social Security Administration, monthly accuracy trainings for eligibility staff, a rotating interview schedule to allow more processing time, IT notices to SNAP households explaining verification options, targeted case reviews, employment and wage verification tools, and additional investigative staff to align with heightened federal fraud priorities. Catone warned that without corrective actions the state could face a $70 million–$200 million state cost‑share exposure in FY2028.
Catone also described Priority 6 (Healthy Bucks), a nutrition incentive program that doubles purchasing power for fresh fruits and vegetables at participating vendors. He said Healthy Bucks began in 2014, has expanded through local farm‑stand and nonprofit participation (FoodShare South Carolina and other vendors), and that recent nonrecurring general‑fund support is keeping the program running because federal funds cannot be used for this purpose.
On questions, Catone said preliminary internal data show SNAP payment error rates are trending down after reforms and that DSS will continue to invest in staff and technology to reduce error rates. He said most Healthy Bucks vendors are local farm stands and nonprofits, not large grocery chains, keeping incentives largely in‑state.
Ending: Catone closed by reiterating the governor’s recommended funding covered most items and asking for the committee’s support for priority investments.
