Summary: The President has proposed eliminating the duplication between food stamp and school lunch subsidies. GAO agrees that substantial savings might be possible by eliminating this duplication. Further overlaps and potential savings are available regarding the summer food service, child care feeding, free special milk, and breakfast programs. A 1978 GAO report recommended that the Department of Agriculture study the administrative feasibility of considering child-feeding benefits when determining food stamp eligibility and benefits. Another area of potential savings discussed in that report was the use of individualized food stamp allotments. Because the uniform allotment amounts are based on the needs of an average family, the combination of free food stamps and a reasonable investment of household funds could enable some recipients to receive benefits above their food plan costs and others not enough. GAO recognized that higher administrative costs might be involved and recommended that demonstration projects be established to evaluate the increased administrative cost and error, if any, that would result. The President has proposed calculating eligibility on the basis of household income in the prior period. This retrospective accounting uses actual rather than estimated income information for making benefit determinations; however, it could result in a household receiving benefits after it no longer needs them. In 1977, GAO estimated that the Government was losing over half a billion dollars annually because of errors, misrepresentations, and suspected fraud by recipients and local food stamp offices. Progress is being made in improving controls over domestic food assistance programs. Those responsible for administering the work requirements of the Food Stamp Program seemed to regard them as administrative paperwork rather than as a tool for reducing the Program's size. GAO is currently completing an assessment of the first year's operation of the demonstration project on workfare and will recommend changes to make operation of the concept more effective.
