94-30324. Food Stamp Program: Asset Accumulation Demonstration Projects  

  • [Federal Register Volume 59, Number 236 (Friday, December 9, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-30324]
    
    
    [[Page Unknown]]
    
    [Federal Register: December 9, 1994]
    
    
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    DEPARTMENT OF AGRICULTURE
    Food and Consumer Service
    RIN 0584-AB80
    
     
    
    Food Stamp Program: Asset Accumulation Demonstration Projects
    
    AGENCY: Food and Consumer Service, USDA.
    
    ACTION: Notice.
    
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    SUMMARY: The Food and Consumer Service is announcing its support for 
    demonstration projects to test the effects of allowing Food Stamp 
    Program participants to accumulate assets for specific purposes related 
    to self-sufficiency. These demonstration projects will operate in 
    accordance with Section 17(k) of the Food Stamp Act of 1977, as 
    amended. The intent of this Notice is to solicit proposals from State 
    and/or local agencies wishing to conduct demonstration projects during 
    the demonstration project period.
    
    DATES: Requests for application packages must be received by January 9, 
    1995. Public comments concerning the terms and conditions of the 
    demonstration projects are welcome but must be received by December 27, 
    1994. Any changes made as a result of comments received shall be 
    incorporated in the application package, which will be mailed to 
    applicants no later than January 13, 1995. Completed applications must 
    be received by C.O.B. February 7, 1995, to ensure consideration for 
    award under this solicitation.
    
    ADDRESSES: Interested agencies should submit a written request for an 
    application package (and include four self- addressed labels) to the 
    address listed below: USDA, Food and Consumer Service, Program 
    Development Division, FSP, Attn: Carol Stobaugh, 3101 Park Center 
    Drive, room 717, Alexandria, Virginia 22302-1594.
    
    FOR FURTHER INFORMATION AND COMMENTS CONTACT: Gary Batko, Supervisor, 
    Legislation and Court Suits Section, Food and Consumer Service, at the 
    address listed above or telephone (703) 305-2790.
    
    SUPPLEMENTARY INFORMATION:
    
    Classification
    
    Executive Order 12866
    
        This Notice has been determined to be significant and was reviewed 
    by the Office of Management and Budget under Executive Order 12866.
    
    Executive Order 12372
    
        The Food Stamp Program is listed in the catalog of Federal Domestic 
    Assistance under No. 10.551. For the reasons set forth in the final 
    rule and related Notice to 7 CFR part 3015, subpart V (48 FR 29115, 
    June 24, 1983), this program is excluded from the scope of Executive 
    Order No. 12372 which requires intergovernmental consultation with 
    State and local officials.
    
    Regulatory Flexibility Act
    
        This Notice has been reviewed with regard to the requirements of 
    the Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612). William 
    Ludwig, Administrator of the Food and Consumer Service (FCS), has 
    certified that the demonstration projects described in this Notice will 
    not have a significant economic impact on a substantial number of small 
    entities because the demonstration projects will be conducted in 
    limited areas. State and local welfare agencies will be affected to the 
    extent that they administer demonstration projects. Those food stamp 
    recipients participating in the demonstration projects will be affected 
    by this action in that the provisions of the Food Stamp Act affecting 
    the recertification eligibility criteria for receipt of benefits may be 
    waived to the extent necessary to permit the implementation of the 
    special eligibility criteria established for these demonstration 
    projects.
    
    Paperwork Reduction Act
    
        This Notice does not contain reporting or recordkeeping 
    requirements subject to approval by the Office of Management and Budget 
    under the Paperwork Reduction Act of 1980.
    
    Background
    
        Section 5(g)(1) of the Food Stamp Act of 1977, as amended (Act) (7 
    U.S.C. 2014(g)(1)), and current food stamp regulations at 7 CFR 
    273.8(b) require that eligible households have no more than $2,000 in 
    countable assets, including both liquid and non-liquid assets, or 
    $3,000 if at least one household member is age 60 or older. Current 
    program provisions, therefore, do not encourage asset accumulation by 
    individuals in food stamp households.
        There is growing interest in ways to promote asset accumulation by 
    public assistance recipients as a way of promoting their long term 
    self-sufficiency. It is presumed that current limits on assets may 
    discourage recipients from investing in their education, job training, 
    and/or improved housing conditions. Several welfare reform projects are 
    currently underway which incorporate some form of increased asset 
    accumulation into their program design. However, these efforts focus on 
    the Department of Health and Human Services' Aid to Families with 
    Dependent Children Program. Congress has mandated the demonstration 
    projects described in this Notice to enable a careful examination of 
    the impact of increasing the asset accumulation threshold in the Food 
    Stamp Program (Program) independent of other reform measures. Section 
    13925 of the Mickey Leland Childhood Hunger Relief Act, Chapter 3, 
    Title XIII of the Omnibus Budget Reconciliation Act of 1993, Pub. L. 
    103-66, amends Section 17 of the Act (7 U.S.C. 2026) to authorize asset 
    accumulation demonstration projects in which a maximum of 11,000 food 
    stamp eligible households are offered the opportunity to accumulate 
    assets up to $10,000 for later expenditure for specified purposes 
    determined to increase potential for self-sufficiency. More 
    specifically, these assets can be used for expenditures directly 
    related to improving the education, training, or employability 
    (including self-employment) of household members, for the purchase of a 
    home for the household, for a change of the household's residence, or 
    for making major repairs to the household's home. Money set aside for 
    these purposes will be excluded from consideration as assets in 
    calculating food stamp eligibility.
        Households participating in the demonstration projects would have 
    to establish separate accounts for assets designated for these specific 
    intentions. Assets not exempted in their entirety under the 
    demonstration projects are subject to the limits as specified in food 
    stamp regulations at 7 CFR 273.8(b). The elevated threshold would not 
    be used when determining initial eligibility for the Program. (That is, 
    new applicant households will still be subject to the existing limit of 
    $2,000, or $3,000 if a household member is elderly).
        This Notice establishes the terms and conditions for the 
    demonstration projects and institutes uniform criteria for evaluating 
    proposals and selecting demonstration project areas. State/local 
    agencies interested in participating in these demonstration projects 
    are invited to request a Demonstration Project Application Package, 
    which contains detailed information and instructions on preparing and 
    submitting demonstration proposals. Local agency proposals must be 
    submitted through and approved by the State agency, which will be 
    responsible for overall control of the demonstration(s) conducted 
    within its boundaries and for coordination with the Department 
    (``Department'' includes the Secretary and the Food and Consumer 
    Service, as may be appropriate). Each proposal must contain signed 
    agreements from the appropriate State officials authorizing the 
    demonstration project in that State. The Department will not negotiate 
    or enter into any agreements with agencies below the State level.
        The demonstration described in this Notice offers the opportunity 
    to test the effects of raising the maximum asset threshold for food 
    stamp households already participating in the Program. Research 
    questions that are of principal interest to the Department include:
        1. How do recipients respond to the assets accumulation provision?
        2. What is the impact of asset accumulation on Food Stamp Program 
    costs?
        3. What is the relationship between asset accumulation and self-
    sufficiency?
        The Department will select an independent contractor to conduct an 
    evaluation that addresses these and other research questions. 
    Demonstration sites are expected to cooperate with the evaluation 
    contractor.
    
    The Food Stamp Program Asset Accumulation Demonstration Projects
    
        Using the authority to operate demonstration projects provided by 
    section 17 of the Act (7 U.S.C. 2026), the Department will authorize 
    asset accumulation demonstration projects totaling no more than 11,000 
    households, for a period not to exceed four years. A county, city, 
    welfare district, or any other political jurisdiction with clearly 
    defined boundaries, or combinations of such entities, may be designated 
    as a demonstration project site.
        In order to obtain demonstration results that represent the 
    different Food Stamp Program populations, the Department will, in the 
    proposal selection process, place special emphasis on choosing sites 
    that are broadly representative of the Program. At a minimum, the 
    Department intends to include one urban and one nonurban or rural site 
    in these demonstration projects. The Department will assess how the 
    applicant's proposed site fits in with this goal in conjunction with 
    the size constraints placed on the demonstration. The Department is 
    also interested in proposals which represent a variety of outreach 
    activity levels. Intervention strategies could vary significantly in 
    terms of intensity, ranging from letters announcing the opportunity to 
    establish self-sufficiency accounts to a more active approach in which 
    households are actively solicited to participate in the demonstration 
    project. Finally, the estimated costs associated with administrative 
    and evaluation responsibilities of the demonstration will also 
    influence site selection.
        To conduct these demonstration projects, the Department is 
    authorized to waive the maximum allowable assets requirements found in 
    subsection 5(g) of the Act (7 U.S.C. 2014(g)). This waiver will permit 
    a participating demonstration project site, with the approval of the 
    State agency, to operate the Program as it normally would except for 
    application of the demonstration project criteria in place of standard 
    Program regulations regarding maximum asset accumulation criteria for 
    recertification purposes. In support of these demonstration projects, 
    the Department of Health and Human Services' Administration for 
    Children and Families has committed to similar asset threshold waivers 
    involving Food Stamp Program households who also receive Aid to 
    Families with Dependent Children benefits.
        Corresponding requirements under the current food stamp regulations 
    at 7 CFR 273.8(b) shall also be waived to the extent necessary to 
    permit participating sites to apply asset accumulation criteria when 
    determining a household's recertification. Current Program regulations 
    for assets which are not modified or otherwise addressed by this 
    Notice, will continue to apply to participating demonstration project 
    sites.
    
    A. Basic Operational Requirements
    
        For purposes of these demonstration projects, participating sites 
    shall observe the following steps in determining the treatment of 
    assets for Food Stamp Program eligibility purposes.
        Step 1. Continue to determine Program initial eligibility in 
    accordance with current eligibility criteria.
        Step 2. Once eligibility is determined, households will be randomly 
    assigned to demonstration project and control groups. Those assigned to 
    the demonstration project group have the opportunity to accumulate 
    assets for self-sufficiency purposes, as defined in the demonstration 
    project rules.
        Step 3. Upon redetermination of eligibility, assets which have 
    accumulated in specially designated accounts for self-sufficiency 
    purposes will be excluded in their entirety as assets up to $10,000 for 
    the length of the demonstration project, not to exceed four years.
        Step 4. Assets not excluded in their entirety under Step 3 will be 
    held to the limits as set forth in 7 CFR 273.8(b).
        Step 5. Accounts must be monitored to ensure that assets are used 
    for specially designated purposes.
        Some households that are part of the test will leave the Program 
    and then reapply for food stamps within the demonstration project 
    period. We believe that these applicants should not be penalized 
    because of their participation in these demonstration projects. 
    Accordingly, any savings previously excluded from the asset test under 
    the demonstration projects would continue to be excluded in determining 
    eligibility. There are various reasons why participants leave and 
    subsequently return to the Food Stamp Program. Some may lose 
    eligibility for failing to meet reporting or recertification 
    requirements; others may obtain temporary employment. About one-third 
    of all persons leave the Program and resume participation within one 
    year. The Department is seeking to learn as much as possible about the 
    costs and impacts of this asset exclusion. Therefore, we are proposing 
    to exclude assets in the special accounts for the life of the 
    demonstration projects to enhance our evaluation of various possible 
    time limits on the exclusion.
    
    B. Demonstration Project Sponsors
    
        To participate in these demonstration projects, potential 
    demonstration project sponsors must meet the following requirements:
        1. Be a political subdivision or grouping thereof (i.e., a State or 
    a unit of local government or a combination of local governments). A 
    county, city, welfare district, any other political jurisdiction, 
    subdivision thereof, or combination of such entities with clearly 
    defined boundaries, may be designated as a demonstration project site.
        2. Have the capability for effectively operating and administering 
    a demonstration project under the terms and conditions established in 
    this Notice, the Food Stamp Act, and Program regulations.
        3. Designate a demonstration project site that is representative of 
    the Program nationally in terms of public assistance/non-public 
    assistance caseload. At a minimum, the Department will be selecting two 
    demonstration project areas, one urban and one non-urban or rural site. 
    The total number of recipients invited to participate in the treatment 
    group, including recipients who do not receive food stamps throughout 
    the project, cannot exceed 11,000 for the entire demonstration. 
    Sponsors should specify the size of their site and the underlying 
    assumptions used to determine this selection. Sites can consist of a 
    portion of the jurisdiction (such as an office) or an area defined by 
    grouping smaller project areas together.
        Proposals for these demonstration projects are specifically limited 
    to an asset accumulation initiative. The Department is currently 
    conducting several other demonstration projects which allow households 
    to accumulate substantial assets for self-sufficiency purposes in 
    conjunction with other welfare reform initiatives. Demonstration 
    project areas currently involved in such studies are not eligible to 
    participate in the asset accumulation demonstration project because we 
    believe such participation will affect the results of those studies, 
    and/or, that the studies will affect the outcome of this demonstration 
    project. Asset accumulation demonstration project sites will also be 
    ineligible for welfare reform waivers throughout the course of the 
    demonstration project, unless it can be demonstrated that the waiver(s) 
    would not impact the results of these demonstration projects. States or 
    localities which have approval to operate cash-out or Electronic 
    Benefit Transfer systems in place of traditional food coupon systems 
    are eligible for these demonstration projects.
        The Department is also considering the selection of a site or sites 
    with varying levels of outreach activity designed to encourage 
    households to take advantage of the demonstration project provisions. 
    This would allow the Department to assess the impact of outreach on the 
    overall effects of these demonstration projects.
    
    C. Responsibilities
    
        The Department shall be responsible for:
        1. Providing funding, as specified in Section D of this Notice.
        2. Providing training and technical assistance, as necessary and as 
    agreed to by the Department.
        3. Monitoring demonstration project operations through normal Food 
    Stamp Program review activities, and special reviews and audits.
        4. Securing an independent evaluator to evaluate these 
    demonstration projects using evaluation criteria identified under this 
    Notice.
        5. Approving requests from the evaluation contractor for data from 
    the State.
        6. Approving changes to the demonstration projects. The State and/
    or local agency shall be responsible for:
        (1) Establishing a procedure within the Food Stamp Program and the 
    eligibility redetermination process for applying demonstration project 
    procedures outlined in this Notice.
        (2) Calculating participation using both current law and 
    demonstration project rules regarding maximum asset accumulation (in 
    order to determine whether participants would be disqualified without 
    the demonstration project changes).
        (3) Training caseworkers and other staff concerning all aspects of 
    the demonstration project and demonstration project procedures.
        (4) Reporting to the Department as required under Section E of this 
    Notice, including preparing and submitting a Status Report.
        (5) Reporting to the evaluation contractor as required under 
    Section E of this Notice.
        (6) Cooperating with all evaluation activities connected with the 
    demonstration project under the sponsorship of the Department. This 
    includes establishing and maintaining a procedure to randomly assign 
    households to demonstration project and control groups. The proportion 
    of households assigned to the demonstration project group may be larger 
    than 50 percent.
        (7) Maintaining an accessible database of participant 
    characteristics and demonstration project participation for evaluation 
    purposes. For each household in the demonstration project group, this 
    information shall be linked to data on savings.
        (8) Notifying recipients of the termination of the demonstration 
    project, if appropriate, in accordance with 7 CFR 273.13.
        (9) Obtaining approval from the Department prior to the release of 
    information related to the results of these demonstration projects.
    
    D. Funding
    
        The Department will make available funds to support these 
    demonstration projects. As part of the application process, sponsors 
    will submit a budget which estimates their administrative costs for 
    participation and implementation of demonstration project rules. To the 
    extent that funds are available, costs attributed to participation in 
    these demonstration projects will be covered 100%. Funds are also 
    available to help defray the costs of implementing these demonstration 
    projects on a 50/50 match basis. Benefit/coupon costs will be paid 
    under current program funding procedures. The Department is not 
    obligated to award the entire amount of funds made available. The 
    amount awarded under any one agreement shall be determined by the 
    Department based on the scope and size of the demonstration project 
    sites proposed.
        Specific procedures for reimbursement of eligible demonstration 
    project-related costs will be detailed in the application packages.
    
    E. Recordkeeping and Reporting
    
        The data collection effort is designed to answer research questions 
    in a manner that balances methodological rigor and operational 
    feasibility. An overview of the kinds of information needed from States 
    is described below. A more specific implementation plan will be 
    developed under the evaluation contract in consultation with State 
    agencies.
        Special Demonstration Project Reporting Requirements: The 
    Department will require that reports be submitted for demonstration 
    project activity as follows:
        1. Describe the implementation of assets accumulation:
        a. Provide copies of all written materials that pertain to the 
    plans, implementation, and operation of the demonstration project. Such 
    materials will include, at a minimum: meeting minutes, written planning 
    and implementation documents, any new reporting forms, notices to 
    recipients, and other public communications. These documents shall be 
    provided as an attachment to each monthly demonstration project 
    progress report.
        b. Participate in periodic interviews conducted by the evaluation 
    contractor. These are likely to be a combination of in-person and 
    telephone contacts that occur 3-4 times over the length of the 
    demonstration project. Contacts with key State and local agency staff 
    will be included in each round of interviews.
        c. Allow the evaluation contractor and Department staff to observe 
    key planning or implementation meetings conducted by State and/or local 
    agency staff.
        2. Assess recipient response to assets accumulation: Provide hard 
    copy or automated data that identifies relevant characteristics and 
    behavior of each household. Since the evaluation is looking at behavior 
    over time either a longitudinal file will need to be set up for each 
    household or a common household identifier used to link different data 
    sources.
        a. Relevant characteristics data for households in both the 
    demonstration project and control groups include:
    
    --Demographic characteristics
    --Household composition
    --Income amount and sources
    --Benefit allotment size by program by month
    --Value of assets at the time the asset accumulation option is made 
    available
    --Start date for current Food Stamp Program certification period
    --Program participation status by month and reason for termination 
    during the course of the demonstration project
    --Value of assets at the time of the most recent certification/
    recertification
    
        b. Relevant household behavior/knowledge data for households in the 
    demonstration project group include:
    
    --Initial response to the demonstration project
    --Knowledge of the demonstration project at the time of the most recent 
    Food Stamp Program application
    --Influence of the demonstration project on the most recent decision to 
    apply for Food Stamp Program benefits
    --Date the earmarked savings account was established
    --Value of savings by month
    --Stated purpose of the savings account
    
        3. Estimate impacts on Program costs:
    
        a. Track administrative costs associated with assets accumulation. 
    At a minimum, these will include labor and other direct costs of 
    informing households about the demonstration project and monitoring 
    household savings.
        b. Note that the site information needed to estimate benefit costs, 
    Program participation, and Program applications is already described as 
    part of Objective 2 reporting requirements.
        4. Examine the impact on household self-sufficiency:
        a. Provide a hard copy or automated file with identification 
    (including addresses and phone numbers) of current Program participants 
    and indicators of whether or not they are part of the demonstration 
    project population, as well as whether or not they have established 
    earmarked savings accounts. This information will be used to generate 
    sampling frames for the evaluation contractor's recipient interviews.
    
    F. Site Selection Criteria
    
        Criteria for Evaluating Demonstration Proposals: The Department 
    will evaluate each proposal using a two-step process. First, the 
    technical aspects will be evaluated by a technical review panel 
    (panel). The panel will evaluate the technical merit of each proposal 
    according to the evaluation criteria listed below (with relative 
    weights shown in parentheses). Panel members will evaluate each 
    proposal independently and assign it a numerical score for each 
    evaluation criterion. The panel will average the scores assigned to 
    each proposal and rank the proposals on their technical merit according 
    to their mean scores. Based on this technical review, the panel will 
    recommend a competitive range for proposals. That is the range in which 
    proposals have a reasonable chance of being selected for negotiation of 
    an agreement under the terms of this Notice. The Department may conduct 
    negotiations with applicants in the competitive range, and after 
    negotiations, may ask for ``best and final offers.'' The Department 
    does, however, reserve the right to enter into an agreement with the 
    applicant based on the original proposal and its evaluation.
        Second, the Department will consider the proposed administrative 
    costs associated with each proposal in the competitive range. The cost 
    will be reviewed independently from the technical evaluation.
        The Department will give the technical merit of proposals primary 
    consideration. However, cost (both administrative and benefit), 
    geographic characteristics, and outreach activity levels may serve as 
    tiebreakers when decisions must be made among proposals that are 
    similar or equal in technical merit. Awards will be made in such 
    situations to those applicants whose offers are most financially 
    advantageous to the Department and whose proposals provide the most 
    diversity to the overall demonstration project, such as urban, rural or 
    suburban demographic characteristics and the level of proposed outreach 
    activity (or lack thereof). Therefore, proposals submitted in response 
    to this Notice should be on the most favorable terms from both 
    technical and cost standpoints.
    
    Technical Evaluation Criteria
    
        The following criteria will be used in the evaluation of technical 
    proposals submitted in response to this Notice. The numbers assigned 
    indicate the maximum score available for each factor and its relative 
    importance.
    
    ------------------------------------------------------------------------
                          Criteria Assigned                          Weight 
    ------------------------------------------------------------------------
    1. Understanding of the purpose and objectives of the                   
     demonstration project.......................................         50
    2. The demonstration project's scope, proposed procedures for           
     implementing asset accumulation policies and complying with            
     demonstration project requirements, and its evaluation......        350
    3. Adequacy of the demonstration project work plan, including           
     dates, tasks/activities, reporting interface, etc...........        250
    4. Plans for demonstration project management including staff           
     responsibilities, monitoring, problem resolution, ongoing              
     involvement of key management personnel, and an                        
     organizational chart for the demonstration project..........        175
    5. Organizational and staff capabilities and resources                  
     committed to the demonstration project, including time                 
     commitment of individual staff members......................        175
    ------------------------------------------------------------------------
    
    G. Applications
    
        Applications shall be submitted in an original and four copies to 
    the Deputy Administrator, Food Stamp Program, Food and Consumer 
    Service, USDA, Room 710, Park Office Center Building, 3101 Park Center 
    Drive, Alexandria, Virginia 22302. Applications must be signed by the 
    representative of the State agency having the authority to commit the 
    proposed political subdivision to the demonstration project.
        Prospective demonstration project sponsors shall submit a 
    demonstration project proposal containing specific information 
    regarding their planned demonstration project. Applicants should 
    include in their proposals any additional information which they feel 
    would enhance their prospects for approval. Complete instructions for 
    preparing and submitting demonstration project proposals will be made 
    available through the application packages described above. 
    Applications will be submitted via completion of a Form AD-424, 
    available in each application package. It is anticipated that, at a 
    minimum, each demonstration project proposal will be required to 
    include the following:
        1. A complete description of the site in which the demonstration 
    project shall be carried out. This description shall include an 
    estimate of the total number of households currently participating in 
    the Food Stamp Program (by Public Assistance (PA) and Nonpublic 
    Assistance (NPA) category) and any other information useful for 
    understanding the nature of the jurisdiction in which the demonstration 
    project would be conducted, including complete geographic information 
    relevant to the demographic situation of the area proposed 
    (unemployment rate, distance to shopping, welfare offices, industrial 
    areas, urban/rural/suburban category, etc.). Participation/caseload 
    data submitted with proposals should be for the most recent available 
    month. States combining rural and urban areas into one proposed 
    demonstration project site should provide estimates of the proportion 
    of the demonstration project site PA and NPA caseloads living in rural 
    areas.
        2. A complete description of how the State agency will meet the 
    basic requirements for demonstration project operations (as outlined in 
    this Notice). This description should include a discussion of the 
    mechanics of establishing self-sufficiency accounts and how account use 
    will be monitored. Any access restrictions on the accounts or penalties 
    for misuse should be detailed as well.
        3. Demonstration project proposals must incorporate a detailed work 
    plan for the demonstration project, including a timetable for 
    implementation, the length of operation, and demonstration project 
    termination activities. The workplan must incorporate task statements, 
    milestones, and methodology to be used in completing the tasks within 
    prescribed timeframes.
        4. A proposed budget for both demonstration project administrative 
    costs and evaluation costs.
        5. A description of the number and qualifications of key staff, 
    including a demonstration project director, key demonstration project 
    staff, support staff and management staff, which will be used in 
    carrying out the demonstration project, plus the percentage of time to 
    be allotted by the staff.
        6. The State agency's methodology for cooperating with the 
    Department's evaluator and meeting the random assignment procedures and 
    the data collection requirements described earlier in this Notice. This 
    description should identify person(s) responsible for evaluation 
    activities and the amount of time set aside.
        7. A plan for terminating the demonstration project procedures and 
    returning to the use of existing food stamp eligibility criteria.
        Any changes made as a result of comments received in response to 
    this Notice will be reflected in the application packages. In the event 
    of inconsistencies, information and instructions in the application 
    packages shall take precedence over this Notice.
    
    H. Monitoring and Evaluation
    
        The Department shall monitor the operation of demonstration 
    projects implemented under this Notice. This monitoring activity does 
    not, in any way, decrease the State agency's responsibility for 
    oversight of the demonstration project's operation. At a minimum, 
    monitoring shall include assessment of the demonstration project 
    sponsor's compliance with the provisions of this Notice, the governing 
    agreement between the State and the Department, and any other 
    applicable rules and procedural requirements.
        A comprehensive evaluation of the effects of these demonstration 
    projects will be carried out for the Department by an independent 
    contractor. State and local welfare agency staff involved in these 
    demonstration projects are required to work closely with and supply 
    information to the evaluation contractor and cooperate fully in the 
    evaluation. The evaluation shall be structured to assess the extent to 
    which the establishment of an asset accumulation account affects 
    household self-sufficiency. To achieve this objective, it will be 
    necessary for demonstration project sponsors to calculate measures of 
    self-sufficiency both under the demonstration project rules and under 
    current Program rules. Specific evaluation specifications will be 
    finalized and a contract awarded prior to implementation of these 
    demonstration projects. At a minimum, the evaluation is expected to 
    address the following questions:
        1. How is the demonstration project implemented? What are the 
    characteristics and size of the Program population that is targeted? 
    How is the opportunity to participate in the demonstration project 
    communicated? What requirements or constraints are imposed on 
    recipients?
        2. How do recipients respond to the demonstration project? Among 
    those who are eligible to accumulate assets, what percentage initially 
    respond, actually set up accounts, and establish savings? What are the 
    distinguishing characteristics of those who respond compared to the 
    targeted population and general Program population, with respect to:
    
    --Demographic characteristics
    --Household composition
    --Income amount and sources (including EITC)
    --Food stamp allotment size
    --Assets at time of last certification
    
        How much is saved over what period of time? How much variation in 
    savings patterns is observed? What are the budget strategies used by 
    those who are successful and unsuccessful at saving? What are the 
    sources of savings? Do new sources of income affect savings success? 
    What are recipients' goals with respect to amount and purpose of 
    savings? How much is actually used and for what purpose? Is the actual 
    purpose the same or different from original intentions?
        3. What is the impact of asset accumulation on Food Stamp Program 
    costs? How do administrative costs change with the introduction of 
    assets accumulation with respect to recipient instructions and 
    reporting requirements? How much does asset accumulation increase 
    benefits? That is, what is the incremental allotment value for every 
    month households have more than $2000 accumulated? How does the pattern 
    of Program participation for households who accumulate assets compare 
    to the pattern for similar households who do not save? Does the 
    introduction of an asset accumulation provision for Program 
    participants affect the number or characteristics of general 
    applicants/applicants who get certified? What are the likely 
    administrative and benefit costs if asset accumulation is implemented 
    nationwide? How sensitive are these estimates to variations in asset 
    accumulation requirements?
        4. What is the relationship between asset accumulation and self-
    sufficiency? (Questions here overlap with those identified for 
    Objectives 2 and 3). To what extent are households able to save the 
    amount intended and to what degree are savings used for the purpose 
    planned? Does the opportunity to accumulate assets affect households' 
    sense of well-being or empowerment? Do households who accumulate assets 
    participate in public assistance programs for shorter periods of time 
    than households with comparable characteristics who do not have the 
    opportunity to save/who have the opportunity but do not save? Are there 
    unintended consequences associated with accumulating assets?
    
    Scope of Demonstration Projects
    
        This Notice will result in the negotiation of agreements between 
    the Department and participating State agencies for the design, 
    development, implementation, and operation of these demonstration 
    projects. Such agreements shall be incorporated into each participating 
    State's Food Stamp Plan of Operation. The Department envisions working 
    closely with the participating State agencies in the development and 
    oversight of these demonstration projects. Participating State agencies 
    must contribute funds (as detailed in the Funding section of this 
    Notice), manpower, facilities, and/or other resources to these 
    demonstration projects.
        After selecting the demonstration project participants, the 
    Department will provide technical assistance to each demonstration 
    project area through existing Program staff and/or through an 
    independent contractor. Demonstration project operators will have 
    access to the technical assistance on an as needed basis to obtain 
    assistance in developing and implementing their demonstration projects. 
    The purpose of this technical assistance is to ensure the continuity, 
    consistency, and reliability of evaluation information collected from 
    all demonstration project participants.
    
    Public Notification
    
        Those sites selected to participate in these demonstration projects 
    must make their proposals available to the general public in order to 
    provide adequate notice of potential changes in Food Stamp Program 
    procedures.
    
        Dated: November 29, 1994.
    Ellen Haas,
    Under Secretary for Food, Nutrition, and Consumer Services.
    [FR Doc. 94-30324 Filed 12-8-94; 8:45 am]
    BILLING CODE 3410-30-U