THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, January 8, 1995 TAG: 9501080048
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY LARRY W. BROWN, STAFF WRITER
LENGTH: Medium: 92 lines
Abell Mack's small grocery store near Diggs Town could lose more than half its patrons if the federal government reduces the number of mom-and-pop stores that can accept food stamps.
``It's crazy,'' said Mack, 56, wondering where the poor people in his Chesapeake/Norfolk neighborhood would shop.
``I'm the only store around here, and they have to buy everything to last them for a while,'' he said Friday.
U.S. Agriculture Department officials say the proposal would eliminate black-market trafficking in food stamps by dropping from the program some of the small, independently owned grocery stores. The object is to reduce fraud, estimated at $2 billion a year.
Officials have been discussing the idea since last summer. The issue is more urgent now as the USDA struggles to respond to questions from the Republican-controlled Congress about food stamp fraud and GOP threats to dismantle the $24 billion program and return the money to the states in lump sums.
Investigators say fraud tends to occur in independently owned groceries with low sales or disproportionately high food-stamp redemptions.
Dorothy Brown, who lives in Norfolk's Diggs Town, shops with food stamps at Mack's store, Scott's Grocery, in the 2000 block of Berkley Ave.
``It would be a disaster, particularly in this low-income area. This is our neighborhood store,'' said Brown, 58.
Brown estimated that 95 to 98 percent of her neighbors receive food stamps. If they cannot use their stamps at Mack's store, she said, they would have few alternatives.
``We need this store because we have nothing else around,'' said Brown, who doesn't own a car, and walks to Scott's Grocery.
Most of her neighbors, she said, do not have cars. The nearest supermarket is miles away.
Brown said the government's
plan could mean the death of small community stores.
``This man could be gone,'' she said referring to Abell Mack. ``He might be able to make it without food stamps, but I truly doubt it.''
The federal department has yet to outline how it would cut the number of food-stamp stores.
Herbert Collins, a Norfolk councilman, runs Long's Market in the 1200 block of Ballentine Blvd. About 80 percent of his customers use food stamps, he said.
``I can't imagine them just blanket eliminating mom-and-pop stores across the nation,'' Collins said.
Fraud is usually caused by people involved with drugs, he said. Crooked retailers also might buy food stamps from drug dealers and other traffickers who trade the coupons for cash and contraband.
In a typical trafficking scheme, food stamp recipients sell their coupons for cash to a retailer who pays them less than face value, generally 50 to 70 cents on the dollar. The grocer is then reimbursed the full amount from USDA.
``I can appreciate the elimination of fraud,'' Collins said. ``But to eliminate a segment of the business community . . . I can't understand that.
``It's just so few of us around,'' said Collins, referring to small, neighborhood stores. ``A lot of us couldn't survive without food stamps.''
In South Hampton Roads, 760 stores, small and large, are authorized to accept food stamps. Norfolk leads the region with 231, followed by Virginia Beach, 220; Portsmouth, 125; Chesapeake, 111; and Suffolk, 73.
Since October 1993, five stores - three in Norfolk and one each in Suffolk and Chesapeake - have been disqualified from accepting food stamps, according to the USDA.
By reducing stores that trade in food stamps, said Collins, the government would punish everyone for the actions of a few.
Herbert Ballard, who helps run George's Place located in the 700 block of West 35th St. in Norfolk's Park Place, said his cash register usually has more food stamps than dollar bills.
During the beginning of the month, 90 percent of his business comes from food-stamp recipients. At other times that number hovers between 70 and 75 percent.
``It's an insult to us,'' Ballard said about the plan. ``I think it's outrageous.
Ballard's family-owned store has been open for 5 1/2 years. In that time, Ballard said, it has never been disqualified from the food stamp program.
``We've helped a lot of people on this corner,'' Ballard said. ``We run it like an old-fashioned store. If the government issues food stamps, why shouldn't you be able to spend them anywhere?'' MEMO: The Associated Press contributed to this report. ILLUSTRATION: Color photo
CHRISTOPHER REDDICK/Staff
Abell Mack, co-owner of Scott's Grocery, may have to stop taking
food stamps from patrons such as Dorothy Brown, right.
by CNB