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County staff warn new state and federal rules could expose Mecklenburg to millions in SNAP cost-sharing penalties
Summary
Budget staff outlined provisions of the recently adopted state budget and HR1 federal changes that shift SNAP administrative and penalty risk to counties; illustrative estimates showed a potential $30–$42 million annualized impact to Mecklenburg if the state triggers a 5% penalty match.
County budget staff gave a detailed briefing on the recently adopted North Carolina Appropriations Act and the portions that affect counties. Intergovernmental affairs manager Lisette Nimmons and budget director Adrian Cox walked the board through funding allocations and legislative language, emphasizing changes with direct county impact: reallocated administrative costs for SNAP, potential penalties tied to statewide payment-error rates under HR1, and STIP/transportation language that could create local reimbursement liabilities.
Adrian Cox gave a tiered explanation of payment-error penalties and an illustrative range of impacts to counties if the state triggers cost-share penalties. Cox said a 5% benefit-match scenario would cost the state roughly $150,000,000 and estimated the county-level annualized impact to Mecklenburg "would likely be between 30,000,000 and 42,000,000." Cox and other staff urged advocacy for a delay or state coverage of any penalties and described internal quality-improvement steps county divisions are taking to reduce error rates.
