State cautiously enjoys lower welfare figures

Thursday, Feb. 27, 2003 | 9:42 a.m.

CARSON CITY -- The number of welfare recipients in the state dropped to 30,231 in January, the lowest point in more than a year.

Tami Dufresne, coordinator for research and statistics of the state Welfare Division, cautioned that the numbers could rise again.

The situation with the Temporary Assistance for Needy Families program is "still volatile," she said.

Officials said Wednesday that the January figure is the lowest since it reached 26,378 in November 2001. It was the fourth decrease in the past five months, and is 1,316 recipients lower than December 2002 figures.

Gov. Kenny Guinn said the news is encouraging but pointed out that 9,784 more recipients still are receiving cash grants than before the Sept. 11, 2001, terrorist attacks.

"Combined with weak and local national economies and the rise in Nevada's December 2002 unemployment rate (from 4.6 percent to 5 percent), I believe that there is still a real potential for caseload increases in the future," Guinn said.

"Welfare's caseload levels continue to contribute heavily to our budget shortfall."

While there was a decline in welfare numbers, there was an increase in the number of food stamp recipients in December to 105,991, an all-time high.

"It tells me there is still a lot of need out there and we are not out of the woods," Dufresne said.

The former high was 101,556 in March 1995. The program is paid for by the federal government, with the state providing a small part of administrative costs.

Welfare officials said the growth in food stamps may be a result of the increasing population. Additionally, conversion to an electronic benefit transfer system, in which food stamps are now handled via swipe cards, has eliminated the stigma of using the actual coupons to buy food.

The number of recipients of Medicaid, the health system for the poor, fell to 162,720 in January, a decline of 1 percent from December. There are still 37,448 more Nevada residents receiving Medicaid cards each month than there were before Sept. 11, 2001.