[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.

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                      Criteria Assigned                          Weight 
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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