Already a leader among states in ensuring that needy families have access to federal food benefits, Michigan has improved service delivery in the Food Assistance Program and avoided more than $3 million in federal penalties, according to a new federal report.

The U.S. Department of Agriculture (USDA) released food assistance accuracy data for fiscal year (FY) 2004. Based on the improvement, the USDA waived $3.4 million in penalties incurred but not yet paid from earlier fiscal years and Michigan averted another $1.5 million penalty by meeting federal standards.

"This administration is committed to protecting our families, children and elderly citizens," said Governor Jennifer M. Granholm. "This report shows we are headed in the right direction, but we won't stop working to improve this critical service for the people of Michigan."

The USDA reported Michigan's Food Assistance error rate – the combined rate of overpayments and underpayments in test cases – was 7.19 percent during FY 2004. This is down from 11.1 percent the year before, 14.1 percent in 2002 and more than 17 percent during 1998 and 1999. Michigan incurred federal penalties in prior years for not meeting federal standards.

Of the Michigan counties issuing $10 million in benefits annually, the USDA recognized six- Berrien, Genesee, Saginaw, Kent, Ingham and Muskegon - for achieving program accuracy rates over 94 percent and as high as 98 percent.

"This improvement is the result of dedicated efforts by our employees and managers," said Marianne Udow, director of the Department of Human Services. "Delivering benefits efficiently and accurately means more families, children, and vulnerable adults have food on their tables."

Michigan's Food Assistance Program supplements the food purchasing power of more than one million low-income individuals and families across the state. The U.S. Department of Agriculture pays for 100 percent of program benefits. Department of Human Services' staff persons statewide determine eligibility for applicants.

In Michigan, it is estimated that more than 65 percent of those who qualify for food assistance received it during FY 2002 (the most recent year in the report). This exceeds the national average by 11 points (54 percent). The USDA said earlier this year that Michigan has the largest percentage of families participating in its Food Assistance Program of all states with more than one million persons qualifying for assistance, and is ranked 10th overall in the nation.

Of the other large states, Illinois was estimated to have 59 percent participation, Ohio 56 percent, Pennsylvania 55 percent, Georgia 54 percent and New York 50 percent. California, Texas, North Carolina and Florida all had less than half of qualified persons receiving benefits from the program, according to USDA estimates.

The comparative figures were announced in "Reaching Those In Need: State Food Stamp Participation Rates in 2002" published in March 2005 by Mathematica Policy Research for the Food and Nutrition Service.

In June 2005 there were 1,063,550 persons receiving benefits and almost $93 million in benefits were issued that month. More than $901 million in benefits were issued during FY 2004 in Michigan.