Food Stamp Penalty

The JBC just approved a $2.8 million penalty payment to the U.S. Dept. of Agriculture. It's hurts, but it's also a relief.

When the state suddenly switched to a new, and unfinished, computer system in 2004, a lot of people lost benefits to which they were entitled. It led to outrage, a lawsuit, and an overcorrection.

The computer system was the infamous CBMS -- the Colorado Benefits Management System. Years in the making, years in the fixing, and years in the mopping up after all of the trouble.

Back in ought-4, Stung by the criticism, the state erred on the side of generosity and, when in doubt, handed out food stamps. That led to people getting benefits who weren't entitled to them.

When the U.S. Dept. of Agriculture later audited us, it stuck to the rules and imposed sanctions. To date, we've handed over nearly $10.5 million in repayments for overpayments and interest. The JBC today OKed another $2.8 million in repayments. It should mark the end of our penance to the USDA.