Monday, October 04, 2010

Gotten angry yet today? If not, this ought to do it.

Compassion for the poor is one thing, but to see the serious problems with our government-run welfare system, you need look no farther than California's, where a recent audit has revealed that more than $69 million in California welfare money, meant to help the needy pay their rent and clothe their children, has been spent or withdrawn outside the state in recent years, including millions in Las Vegas, hundreds of thousands in Hawaii and thousands on cruise ships sailing from Miami.
State-issued aid cards have been used at hotels, shops, restaurants, ATMs and other places in 49 other states, the U.S. Virgin Islands and Guam, according to data obtained by The Times from the California Department of Social Services. Las Vegas drew $11.8 million of the cash benefits, far more than any other destination. The money was accessed from January 2007 through May 2010.

Welfare recipients must prove they can't afford life's necessities without government aid: A single parent with two children generally must earn less than $14,436 a year to qualify for the cash assistance and becomes ineligible once his or her income exceeds about $20,000, said Lizelda Lopez, spokeswoman for the Department of Social Services.

Round-trip flights from Los Angeles to Honolulu on Sunday started at $419 — more than 80% of the average monthly cash benefit for a single parent of two on CalWorks, the state's main aid program.

"How they can go somewhere like Hawaii and be legit on aid … they can't," said Robert Hollenbeck, a fraud investigator for the Fresno County district attorney's office. "This is money for basic subsistence needs."

The $387,908 accessed in Hawaii includes transactions at more than a thousand big-box stores, grocery stores, convenience shops and ATMs on all the major islands. At least $234,000 was accessed on Oahu, $70,626 on Maui, $39,883 on Hawaii and $22,170 on Kauai.

The list includes $12,433 spent at the upscale Ala Moana shopping center, $3,030 spent at a group of gift shops next to Jimmy Buffett's Beachcomber restaurant on Waikiki Beach and $2,146 withdrawn from ATMs on the island of Lanai, home to a pair of Four Seasons resorts and little else.

"If it's on Lanai, that should trigger an investigation," said Jon Coupal, president of the Howard Jarvis Taxpayers Assn. "California taxpayers, who are struggling to keep their own jobs, are subsidizing other people's vacations. That's absurd."

Of the nearly $12 million accessed in Las Vegas, more than $1 million was spent or withdrawn at shops and casino hotels on, or within a few blocks of, the 4.5-mile strip. The list includes $8,968 at the Tropicana, $7,995 at the Venetian and its Grand Canal Shoppes, and $1,332 at Tix 4 Tonight, seller of discount admission for such acts as Cirque du Soleil.

Although many Las Vegas casinos block the use of welfare cards in ATMs on gambling floors, more than $34,700 has been spent or withdrawn from the ATM at a 7-Eleven in the shadow of Steve Wynn's new Encore casino and a couple of blocks south of Circus Circus.

The data show addresses of stores and ATM locations where the cards have been used and the amounts of the transactions by year. They do not reveal the identities of the welfare recipients or show how many users visited a given retailer.
And this of course causes me to ask: "Why the hell not?" Why aren't these so-called "needy" people called into their local welfare office and made to account for the spending, and why isn't their aid turned off until they do so? And why aren't their cards set up to only allow purchase of staple food items at grocery stores?
Of the $1.5 million accessed in Florida, $13,109 was spent or withdrawn in South Beach, most of that at bars and restaurants along trendy Lincoln Road. More than $7,000 was withdrawn from ATMs a few hours north, at Walt Disney World.

The data also show $16,010 withdrawn from 14 cruise ships sailing from ports around the world — Long Beach, Rio de Janeiro, Beijing. Eight sail primarily from Miami.

The out-of-state spending accounts for less than 1% of the $10.8 billion spent by welfare recipients during the period covered, and advocates note that there are legitimate reasons to spend aid money outside of California. From the data provided, it cannot be determined whether any of the expenditures resulted from fraud.

"I think when somebody hears it's in a fancy hotel in Hawaii or Vegas, it's too easy to assume the [welfare recipient] is visiting that place and it wasn't somebody who stole their card," said Jessica Bartholow, a legislative advocate for the Western Center on Law and Poverty.
Yeah, right. Someone stole all those cards--and the PIN numbers needed to use those cards. Uh-huh. Sure. But I can't blame them for trying to gull us with that one, since we were dumb enough to set up welfare programs like this and then trust that people who applied for it wouldn't tear the ass out of it like Michael Jackson in a daycare center. But knowing what's going on, it's a no-brainer that the government has put some investigators on the job who are diligently tracking down abusers, right?

There is no rule preventing welfare recipients from leaving California, as long as they get clearance from their county case worker to be absent from the program's 32-hour-a-week job training requirement. County investigators, who state authorities say are responsible for rooting out fraud and abuse, typically don't question a recipient's whereabouts until transactions on a welfare card show that he or she has been gone for more than 30 days.

"If it's a one-time thing in Miami, we would never check that out," said John Haley, commander of the financial crimes division of the San Diego County district attorney's office, who said 24% of all new welfare applications in his jurisdiction contain some form of fraud. "We look for patterns of abuse."

In Los Angeles County, investigators hadn't been checking until a recipient was gone for three months, said Department of Public Social Services Director Philip Browning. The inability to do more was "really just a resource issue," he said.

Following questions from The Times, Browning said investigators would start inquiring once the data show that a recipient has been gone for more than 30 days.

An anti-fraud unit in Orange County, which won praise from state officials last year for saving the state millions, has since had to slash its budget and lay off 15 investigators, said Paul Bartlett, commander of the county district attorney's Bureau of Investigation.

Those cuts saved $900,000 in operating expenses but allowed "an estimated $9.6 million in suspected fraud payments out the door," according to an Orange County Grand Jury report released in May.

A state audit last year found that none of California's 58 counties was adequately following up on information that could help root out fraud, including monthly computer matches that list clients who are receiving duplicate aid from other states, those who are ineligible because they're in prison and others who have died.
And remember folks--California gets much of that money not from it's own citizens, but from my paycheck and yours, due in large part to that state's massive over-representation in Congress. (See why the census shouldn't count illegal aliens when determining allocation of congressional seats now? See why states like California demand that they be counted?)

This is why I'd like to see us go back to the old Pre-FDR/LBJ days when charity assistance was given out by private charities and churches instead of the government. At least then, there was usually some oversight, and cheaters could be--and were--turned away without recourse. But we can't have the big government that the Democrats want without a large core of dependent voters, and nothing creates such a pool of reliable supporters like a government-run free-cheese store...especially one that lets the "poor" and "downtrodden" take cruises and trips to Hawaii on our money.

California needs to hire a lot more investigators, even if they have to cut benefits to pay for them. And those gold-plated "aid" cards need to be reprogrammed to insure that they are only used by someone showing a California state ID card in the name of the person that it was issued to and even then they should not work outside of the state.


  1. This kind of thing is just one of the many reasons I'm seriously considering moving out of this state permanently.

    And remember, the whole ATM style payment system was supposed to stop all the fraud and waste.

  2. Pehaps if our gov't was not wasting valuable time voting on BS bills that "unanimously" require TV stations and cable companies to keep commercials at the same volume!!!!! .....they might have some friekin' time to see that our tax dollars are being funneled out right before our eyes.

    I must be doing something wrong here...I have never even been to Hawaii!

  3. Anonymous10:38 AM

    @#$# outrageous

  4. Can anyone explain to me why the working citizens of CA are not protesting at the capital to have this system shut down?? Paying able-bodied adults to not work is ridiculous, but this is absolutely beyond the pale. The entire system needs to go.

  5. Well, it IS Kalifornia... They are cutting fire/police/EMS to keep the welfare going...