PHOENIX — Gov. Katie Hobbs is tapping some federal funds she still has left from the 2020-23 COVID pandemic to fix problems that have delayed food stamp and unemployment benefits for Arizonans.
Hobbs said the $7.5 million will address "staffing constraints'' at the state Department of Economic Security, including by hiring 15 temporary workers specifically to expand capacity to verify applicants' incomes.Â
Some of these issues go back a year or more. The governor blamed at least part of the problem on federal budget cuts.
The federal government not only pays for benefits — which are untouched by cuts — but also picks up part of the cost of running the food stamp program, formally known as the Supplemental Nutrition Assistance Program.
DES said earlier this month that the number of workers who review food stamp eligibility dropped by 1,370 in July 2024 to 880 this past July.
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And a spokesman said the department was processing an estimated 54,000 new and renewal applications, of which 18,000 were taking more than 30 days.
As of November — when food stamp payments were delayed in a dispute with the Trump administration — DES estimated that about 855,000 Arizonans were getting benefits, roughly one out of every eight people in the state. That includes about 347,000 children.
Gov. Katie Hobbs
The average benefit is about $359 per household.
There's also another issue that has yet to hit Arizona.
Beginning in 2028, the Big Beautiful Bill approved earlier this year by Congress will make states with payment error rates higher than 6% pay a greater share of the administrative costs as well as fines. The most recent figure for Arizona puts the error rate here at 8.84%.
The Democratic governor called that part of "the partisan Washington budget.''
Hobbs said the additional staffing and improved payment accuracy will reduce that rate, which represents underpayments or overpayments, something she attributed to "miscalculation, typically due to fluctuations in the recipient's income.'' While Hobbs said she is hoping for improvement, she also noted the national error rate is higher, at 10.93%.
Issues with unemployment benefits are related to — but not directly tied to — the cut in federal dollars that is affecting food stamp benefits.
Data for the most recent week from DES shows new claims for benefits at more than 2,600, with another nearly 20,000 ongoing claims.
But it also shows the department went from answering more than 7,000 calls per week in September to fewer than 500 this month.
Gubernatorial press aide Christian Slater said the additional $7.5 million will also help with that.
Overall, he said the money will allow the department to bring on 100 temporary contract workers to handle basic inquiries and complete "routine customer service functions,'' freeing up regular DES staffers to handle more complex problems. He had no immediate answer to how long those staffers would be available until the limited dollars run out.
DES launched a new online platform in September called CACTUS (Comprehensive Arizona Claims Tracking and Unemployment Insurance System), where individuals can file first-time claims for jobless benefits as well as their necessary weekly updates, which include things like certifying they've been looking for work.
In a prepared statement, the governor said she understands "the frustration Arizonans feel with these delays.''
"Families deserve stability, and I'm committed to ensuring they can access the support they need when they need it while protecting critical programs from further federal cuts,'' she said.Â
Howard Fischer is a veteran journalist who has been reporting since 1970 and covering state politics and the Legislature since 1982. Follow him on X,  and Threads at @azcapmedia or email azcapmedia@gmail.com.

