Smart cards a smart decision for food stamps
Arnold R. Tompkins
Smart cards -- cards embedded with computer chips -- have caught the attention of credit card companies, universities and governments as a way to streamline delivery of services and reduce administrative costs.
Ohio has been a leader in this effort, having operated an 11,000-household smart card pilot program since 1992.
Now the state is pushing forward with the design and implementation of a statewide, offline electronic benefits transfer system in place of the current paper food-stamp program.
Gov. Voinovich's state fiscal year 1998-99 budget includes an investment in the smart-card system to serve an estimated 227,000 households.
To convert Ohio's food stamp program to a paperless system, more than 12,000 checkout lanes at 6,600 retainers will be equipped with point-of-sale devices.
Over the next five years, all of Ohio's 400,000 food stamp households will receive approximately $66 million a month in food stamp benefits through the EBT system.
The 1992 pilot program in Montgomery County (Dayton) was well received
by recipients, retailers and local human services agencies.
Ohio chose offline technology because it offers many advantages in terms of cost, convenience and security. The cards reduce the time and effort retailers face at the registers and relieves the burden of counting and bundling food stamps
Smart cards also are easier for the population to use, and take away some of the stigma of welfare.
Finally, the state has found that more of the benefits are used for food items as intended by the federal food stamp program.
The state has contracted with Citibank EBT Services to help design, implement and operate the statewide system. According to the U.S. Department of Agriculture, Ohio is the largest state to proceed with an offline system.
Most states using EBT systems have opted for magnetic-stripe cards or online technology. Ohio's decision to use offline technology was partly driven by the limitations of the mag-stripe cards.
The state is researching the possibility of using smart cards for the federal Women Infants and Children program as well as other cash benefit programs.
In addition, the card could double as a driver's license and could allow Ohioans to renew automobile registrations or even make reservations at state parks and campgrounds.
Arnold R. Tompkins is director of the Ohio Department of Human Services.
1997, Business First
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