Methods to Standardize State Standard Utility Allowances

116 Pages·2017·4.66 MB·English

by  Alex Thackeray

Methods to Standardize State

Standard Utility Allowances

Nutrition Assistance Program Report August 2017
Food and Nutrition Service
Office of Policy Support
USDA is an equal opportunity provider and employer.
Food and Nutrition Service, Office of Policy Support August 2017

Methods to Standardize State

Standard Utility Allowances

Authors:
Chris Holleyman
Timothy Beggs
Alan Fox

Submitted by: Submitted to:
Econometrica, Inc. Office of Policy Support
7475 Wisconsin Avenue Food and Nutrition Service
Suite 1000 3101 Park Center Drive
Bethesda, MD 20814 Alexandria, VA 22302-1500

Project Directors: Project Officer:
Chuck Hanson Barbara Murphy
Project Manager:
Chris Holleyman

This study was conducted under Contract number AG-3198-C-13-0005 with the Food and Nutrition
Service, United States Department of Agriculture.

This report is available on the Food and Nutrition website: http://www.fns.usda.gov

Suggested Citation:
Holleyman, Chris, Timothy Beggs, and Alan Fox. Methods to Standardize State Standard Utility
Allowances. Prepared by Econometrica for the U.S. Department of Agriculture, Food and Nutrition
Service, August 2017.

This report was prepared for the U.S. Department of Agriculture, Food and Nutrition Service
(FNS), Office of Research and Analysis by Econometrica. We would like to thank Alan Fox,
who made important contributions to the study, as well as Barbara Murphy of FNS for her
guidance and support.

Econometrica Project Director: Charles Hanson
Econometrica Project Manager: Chris Holleyman

Econometrica Project Number: 2402-000

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Methods to Standardize State Standard Utility Allowances Econometrica, Inc.
CONTENTS
ACKNOWLEDGEMENTS •.••.••.••.••.••.••.••.••.••.••.••.••.••.••.•••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.•• 111
CoNTENTS ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• v
EXECUTIVE SUMMARY ••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.•••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••.••. XIII
Introduction ....................................................................................................... xiii
Review of Relevant Data Sources ......................................................................... xiii
Modeling Alternatives ......................................................................................... xiv
Findings and Recommendations ......................................................................... xiv
Development of SUAs .......................................................................................... xv
Updating SUAs ..................................................................................................... xv
Implementation ................................................................................................... xv
I. INTRODUCTION ..................................................................................................................................... 1
I.A. Overview of SNAP ............................................................................................ 1
l.B. Standard Utility Allowances .............................................................................. 2
l.C. Implementation of SUAs by States ................................................................... 3
l.D. Study Objectives .............................................................................................. 4
II. REVIEW OF RELEVANT DATA SOURCES ...••....••.....••....••....••....••....••....••....••....••....••....••....••....••....••... 7
II .A. Residential Energy Consumption Survey .......................................................... 8
11.B. American Community Survey (ACS) ................................................................. 9
11.C. State Energy Data System (SEDS) ................................................................... 11
11.D. American Housing Survey (AHS) .................................................................... 12
11.E. National Economic Accounts ......................................................................... 13
11.F. Telephone Data Sources ................................................................................ 14
11.G. Consumer Expenditure Survey ...................................................................... 14
11.H. Short Term Energy Outlook (STE0) ................................................................ 14
II .I. Consumer Price Index (CPI) ............................................................................ 15
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Methods to Standardize State Standard Utility Allowances Econometrica, Inc.
11.J. Data Review Summary .................................................................................... 16
11.K. Review of Federal Methodologies .................................................................. 16
Ill. SELECTION OF FINAL MODELING ALTERNATIVES ...••....••.....••....••....••....••....••....••....••....••....••....••. 18
IV. METHODOLOGIES FOR DEVELOPING SUAS .••....••....•••....••....••....••....••....••....••....••....••....••....••....••. 20
IV.A. Computation of Electricity and Natural Gas/Other Fuels SUSs ...................... 21
IV.B. Water, Sewage, and Trash ............................................................................ 24
IV.C. Telephone ...................................................................................................2 5
IV.D. LUAs ...........................................................................................................2 7
IV.E. Computation of HCSUAs .............................................................................. 28
IV.F. Adjustments to SUAs ....................................................................................3 0
IV.G. Validation and Testing of Methods to Develop Base-Year SUAs .................... 31
IV.G. Implementation of Base-Year SUAs .............................................................. 36
V. METHODOLOGIES FOR UPDATING SUAS ••....••....•••....••....••....••....••....••....••....••....••....••....••....••....••. 38
V.A. Short-Term Energy Outlook (STE0) ............................................................... 38
V.B. Consumer Price Index ...................................................................................3 9
V.C. Optional Adjustment for Household Growth Rate ......................................... .41
V.D. Validation and Testing of Methods to Update Base-Year SUAs ..................... .41
VI. FINDINGS AND RECOMMENDATIONS •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 45
VI.A. Recommended Data Sources ........................................................................ 45
Vl.B. Estimation Results ....................................................................................... 46
Vl.C. Implementation ........................................................................................... 47
APPENDIX A: IDENTIFICATION AND REVIEW OF OTHER DATA SOURCES AND MODELS THAT
WERE CONSIDERED ....••....••....••....••....••....••....••....•••....••....••....••....••....••....••....••....••....••....••....••....••.... A-1
APPENDIX B: PRELIMINARY ALTERNATIVES •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• B-1
APPENDIX C: HOUSEHOLD UTILITY EXPENDITURES AND COMPONENT GROWTH RATES .••.••.••. C-1
APPENDIX D: PROCEDURES USED TO EXTRAPOLATE BASE YEAR SUAS TO TARGET YEAR ••••• D-1
APPENDIX E: PROJECTED NUMBER OF LOW-INCOME HOUSEHOLDS BY STATE ••.••.••.••.••.••.••.••.••. E-1
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