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DCF reports falling SNAP error rate and new administrative costs; officials warn of potential $20M annual state liability if rates remain above federal trigger
Summary
The Department for Children and Families told the council it has reduced SNAP payment‑error rates from double digits toward the federal target, but officials warned that a rate above 6% could shift roughly $20 million in annual benefit costs to the state; members pressed DCF on verification, front‑end application accuracy and contingency planning.
Secretary Howard told the State Finance Council that Kansas is making progress lowering its SNAP payment‑error rate but that volatility in monthly quality‑control samples makes the October 2026 federal target uncertain.
Howard outlined administrative spending in SNAP ("just over $61,200,000" total) and noted a federal policy change means states will pay a greater share of administrative costs beginning in October 2026. That change increases the state share of administrative costs by about $12,100,000, she said, and the appropriation put $12,000,000 of SNAP administrative funds before the council for review. Howard said much of the state's administrative costs are for regional eligibility staff, quality‑control staff and IT/EBT contracts.
On payment accuracy, Howard presented a multi‑year trend: fiscal year 2023 at 12.1%, FY24 about 10%, FY25 9.2%, and the first four months of federal FY26 averaged about 7.5% (based on the data available). She described sampling volatility (about 92 case reviews per month), noted some months were under 6% while other months were bumped by outlier errors, and said DCF has implemented additional verifications, joined the National Accuracy Clearinghouse for cross‑state verification and added a comprehensive interview tool.
Howard recited federal penalty bands for benefit‑cost sharing if error rates exceed thresholds: under 6% states pay nothing; 6–8% results in a 5% state share; 8–10% a 10% state share; and 10% or higher a 15% share of benefit costs. She said an error rate above the 6% threshold could produce roughly a $20,000,000 annual state liability unless federal policy changes.
Council members pressed for clarity and mitigation plans. Senator Ty raised an apparent discrepancy between earlier reported FY26 numbers and the packet figures; Howard said monthly sampling variance can cause temporary divergence and that DCF is taking steps to stabilize rates but could not guarantee meeting the federal 6% threshold by October 2026. Senator Billinger emphasized preventing front‑end errors in initial applications; Howard said new training, supervisory reviews and targeted tools have been implemented to reduce those errors.
Senator Chase asked who would pay the $20 million if penalties apply and how the impact would be felt by Kansas families; Howard said states would be responsible for the share and timing of confirmed obligations will lag until early next year as federal quality‑control reporting catches up.
Senator Sykes moved and Representative Woodard seconded approval of the DCF report; the council voted unanimously to accept the report.
