Scrambling for creative ways to find revenue and help Hawai'i residents during the recession, state Senate Democrats want to relax state eligibility requirements for the federal food stamp program so more people can qualify.

Senate Democrats believe the eligibility requirements are too stringent and the application process too lengthy, discouraging people from applying. Even if the eligibility standards are not relaxed, Democrats say, increasing participation in the program from the existing 72 percent of those eligible to 90 percent would bring in an estimated $45 million in new federal money a year.

Lillian Koller, the director of the state Department of Human Services, which administers the program, said the state's participation rate is among the best in the nation and the department has been aggressive about getting those eligible to apply. She warns, however, that a substantial increase in the caseload would add to the state's administrative costs, which are split with the federal government, and would come at a time when the state has no extra money.

"There's no question in my mind that it's well worth it," said state Senate Majority Leader Gary Hooser, D-7th (Kaua'i, Ni'ihau), who got the idea from the Kaua'i Food Bank. "To me, it's just helping people at minimal cost to the state."

Koller said the idea "is well-intentioned but has several problems."

In Hawai'i, the number of people in the Supplemental Nutrition Assistance Program — formerly known as the food stamp program — has gone up over the past few years and is now the highest since 2000. Statewide, 54,669 households — covering 104,203 people — are enrolled.

Nationally, the program serves about 26.5 million people at a cost of $30 billion.

Low-income residents who qualify receive coupons that can be used at grocery stores to buy food. Alcohol, tobacco, lunch-counter food, vitamins, medicine and pet food are not covered by the coupons. The average monthly stipend in Hawai'i is about $145 per person.

PARTICIPATION LIMITS

In an effort to ensure that help is given to the most needy, the program sets asset and income thresholds. Households can only have $2,000 in assets — $3,000 if one person in the household is 60 or older or disabled — although the value of the home or lot is not counted. The gross monthly income limit is 130 percent of the federal poverty level. Adults who are able-bodied are also expected to meet work requirements.

The federal poverty level varies by family size. For a family of two in Hawai'i, for example, the level is $16,760; for a family of four, it is $25,360.

The bill offered by Senate Democrats would remove the asset test and set the gross monthly limit at 185 percent of the federal poverty level. The bill would also let people apply for the program by fax and allow telephone interviews instead of face-to-face interviews. It would limit the application form to no more than four pages.

State Sen. Suzanne Chun Oakland, D-13th (Kalihi, Nu'uanu), the chairwoman of the Senate Human Services Committee, said the state should build capacity to serve low-income residents through the program and try to pull in more federal money, which would be spent in local stores.

But Chun Oakland also acknowledged Koller's concern about increasing the state's administrative costs when state revenues are declining. "We'd have to find that money," she said.

Koller, in a statement yesterday, said doing away with the asset test and the in-person interviews could violate federal guidelines intended to target the program to the neediest and to prevent fraud. The department can already waive in-person interviews due to hardship, such as disabilities that limit travel or conflicts with childcare.

The bill stipulates that any provision would be void if found to be in conflict with federal requirements that could jeopardize federal money to the state.

Koller said shortening the application form may interfere with the comprehensive form the department now uses to determine eligibility for several programs, including food stamps, welfare and Medicaid, the federal medical insurance program for the poor and disabled.

Koller also said the bill does not address why people who are already eligible for food stamps do not apply. Hooser and other lawmakers counter that changes to the application and interview process would remove some of the existing barriers.

"We continue to expand our efforts to overcome this dilemma," Koller said, "and strongly encourage anyone in need of food aid to apply for this important benefit."

Last month, the Congressional Budget Office director said increasing unemployment insurance assistance or expanding food stamps in the economic stimulus package could have a significant impact on gross domestic product. Last year, an analyst for Moody's Economy.com, a subsidiary of Moody's Corp., the economic research firm, said extending unemployment insurance and expanding food stamps are among "the most effective ways to prime the economy's pump."

GROUPS ENDORSE BILL

Many social-services providers support the bill as a strategy to attract more federal aid and help the poor get through the recession.

"Any program that enables us to draw down more federal dollars in the situation we're in right now has got to be a positive for the community," said Norm Baker, vice president of community building for Aloha United Way.

During the last quarter of 2008, Baker said, the number of calls to Aloha United Way's 211 information service increased by 38 percent, the requests for food pantry assistance increased by 66 percent, and questions about the Women, Infants and Children nutrition program increased 125 percent.

Debbie Shimizu, executive director of the National Association of Social Workers Hawai'i chapter, said the group supports "anything that will help people with their basic human needs, especially in this time.

"If we can get help to more people, then it's good."