NAP needs $5M more to meet rising food cost

The Department of Community and Cultural Affairs’ Nutrition Assistance Program, which is currently operating on an $8 million annual budget, would need over $13 million this year to meet the rising cost of food in the CNMI.

DCCA acting secretary Melvin L. Faisao said the CNMI Commodity Price Index indicates a staggering 17 percent-plus increase in food costs, cramping the pockets of many families on the island. This is seen to drive more families to avail of food stamp benefits, which would further strain the program’s limited funds.

According to the latest CPI issued by the CNMI Department of Commerce, there was a slight increase in food cost between 1997 to 2007. However, in 2008 alone, food costs increased by roughly over 7 percent.

Faisao explained that the consumer price index indicates that based on 10 years since 1997 to 2007, “there is compounded interest of 12.30 percent increase in food cost while in 2008 alone, there’s a strong indication of more than 7 percent increase to date. By adding both, there is roughly more than 19 percent increase in food cost for the past 10 years.”

He said the last time NAP ever got an increase in federal funding assistance was in 1997. Since then NAP has been providing benefits at $8.22 million and operating at $1.2 million as the budget was capped by the U.S. Office of Management & Budget.

Grim news

The CPI for food has increased faster than in two decades, and it is especially grim news for people who rely on government subsidies.

According to a study conducted by a hunger relief organization, America’s Second Harvest, they found that only 16 percent of food stamp recipients said their allotment has lasted them for an entire month.

Reuben Gist, director of advocacy and outreach for the Capital Area Food Bank in the U.S., said that “food stamps are not meant to supply all of a family’s food. However, for many people it has become a way of life, it’s a struggle to make them last.”

Faisao said that on Jan. 11, 2008, after DCCA presented statistics and indicators for a revision of the current NAP funding, Gov. Benigno R. Fitial wrote to U.S. Department of Agriculture’s Allen Ng for consideration in the budget increase and removal of the cap imposed by the U.S. OMB.

“The DCCA NAP expect a projected increase of roughly around $13 million or more as in the NAP federal assistance program budget, since CPI has increased in voluminous jumps at about 17 percent to date. Besides, this request will be contingently in place upon approval by our counterpart in Region IX,” the DCCA official said.