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17 <br /> 1 Slide #10 <br /> State Impacts due to SNAP Changes <br /> Impact of Federal Budget.Reconciliation on State of North Carolina <br /> SNAP Benefit Cost Sharing Effective October 1,2027 <br /> State benefit cost share based on Statewide error rates . State administrative cost share <br /> Benefit Cost Share Payment Error date State&National Error Rates will increase by an estimated <br /> for FFY24 $16 annually beginning Oct <br /> 0%Cost Share Less than 6% 8 states 2026. <br /> 5%Cast Share Between 6%and 8% 6 states . State benefit cost share would <br /> 10%Cost Share Between 8%and 10% 16 states be an estimated$420+ million <br /> per year based on 10.21% <br /> 15%Cost Share Over 10%* 20 states; NC rate is 10.21°1 error rate and benefits of over <br /> (National average is%93%) $2.8 billion <br /> Source:NC CHHS Presentation to the Jainl Legislative Dwrsight Committee on Health and Human Services—January 13,2026 <br /> httos:Ilwe6servlces.nclea:oavNlewOocSlteFlle/144981 QRANtjE C(DuNT-Y <br /> 19 NORTI-I CAROLINA <br /> 2 <br /> 3 Commissioner Carter asked what the county-level error rate is for Orange County. <br /> 4 Travis Myren said they are tracking a little above 6% <br /> 5 Chair Hamilton asked for the definition of an error rate. <br /> 6 Travis Myren said it's anything that affects the benefit amount. He said it could be an <br /> 7 overpayment or an underpayment, or someone ineligible for receiving a benefit. He said it is <br /> 8 anything makes that final benefit amount different than what it should be. <br /> 9 Commissioner McKee asked how that is addressed locally. <br /> 10 Travis Myren said it is based on a sample from each county. He said only about eight <br /> 11 cases are pulled for Orange County. He said the way to drive down error rates is to have <br /> 12 employees with a reasonable caseload that are well-trained. He said one issue is that as the <br /> 13 county picks up more SNAP administrative costs, it probably can't afford additional staff. <br /> 14 Commissioner McKee asked how they determine the breaking point between the cost of <br /> 15 additional staff versus the cost of the error rate. He said the error rate would not be perfect, but <br /> 16 that county would be well-served to keep this as low as possible. <br /> 17 Travis Myren said that's reasonable. <br /> 18 Commissioner Bedford clarified that it is based on statewide rates. <br /> 19 Commissioner Carter added that's the case unless the legislature changes it. <br /> 20 Chair Hamilton clarified that the with the error rate, the cost is currently borne by the state. <br /> 21 Travis Myren said yes. He said if the state fails to fund the cost share, the SNAP benefit <br /> 22 goes away. He said the benefit is an entitlement and levels are set by the federal government. <br /> 23 He said if you can't pay for the benefit as required, you can't run the program. <br /> 24 Vice-Chair Fowler asked if it is legal to pull the whole program if it is an entitlement. <br /> 25 Travis Myren said it is a state decision to provide the benefit. He said if they choose to <br /> 26 not fund the cost share, they can't run the program. <br /> 27 Commissioner Bedford asked that this be part of the legislative breakfast agenda. <br /> 28 Commissioner Carter said the state budget process is frozen. She asked what the risk <br /> 29 timeline is to the program if the budget process isn't resolved. <br />