Government aid programs have flaws? As if we didn’t know that.
A state program that put $200 cash into the hands of low-income parents of school-age children is opening the door for “rampant” fraud and should be suspended, Monroe County Executive Maggie Brooks said Thursday.
The program has caused stores and ATMs to run out of cash and the county’s Human Services Department to be overwhelmed with in-person client visits and calls to its phone system.
Members of Gov. David Paterson’s administration defended the program, saying tales of increased sales of video game equipment and televisions are just anecdotes. The program allows families who couldn’t otherwise afford back-to-school supplies to equip their children for a new year.
What’s clear is that the actual amount of fraud will never be documented because state officials said there is no way for them to see how families are spending the $200-per-child benefit.
The benefit was distributed on Tuesday to families who receive welfare benefits and food stamps, including working families who only receive a limited food stamp benefit. Families with children between the ages of 3 and 17 are eligible, though the children do not need to be enrolled in school.
Wegmans and Tops report that ATMs in their stores ran out of cash on Tuesday, the day the money was deposited to food stamp accounts. The county reports that employees at the Wal-Mart store on Hudson Avenue called the Department of Human Services to say they thought welfare fraud was going on because there was a run on high-end electronics.
The stores received no notice of the program and would have been prepared had they known, spokeswomen from Tops and Wegmans said.
The ATMs first ran out in Syracuse, then the shortage spread to stores around the state, said Jo Natale, director of media relations at Wegmans. By then it was too late to get more cash to the machines, which are run by Wegmans, she said.
Tops reported that people would go through the checkout to purchase a pack of gum in order to get cash back from their food stamp debit card and repeat the process, as only $40 is allowed at a time, said communications manager Katie McKenna. Registers ran out of money.
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“It’s definitely been a problem,” she said.
The county received about four working days notice. Had Monroe County been consulted, it would have recommended a voucher program for supplies, said Human Services Commissioner Kelly Reed.
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Though all the grants may not be used for school supplies, getting cash into the hands of those who don’t have it stimulates the economy faster because they spend the money sooner than wealthy people, said economist and social worker Irwin Garfinkel, a professor at the Columbia University School of Social Work.
“In terms of the stimulus, you couldn’t do better,” Garfinkel said.
The state said 68 percent of the cash went to families who receive food stamps but not other aid, indicating that someone in the home is working but doesn’t earn enough to make ends meet.
The program does not require a share from county property taxpayers or state income tax payers and is funded with $140 million in federal stimulus funds and a matching grant of $35 million from George Soros’ Open Society Institute.
The county reports that its phone system and waiting rooms have been pushed to capacity with people inquiring about the benefit and that someone in the waiting room at the social services office was charged with assault Thursday.
“It’s mayhem,” Reed said. “We are without the means to support this.”
The state will not prosecute families for spending the money on items other than school supplies, said Kristin Proud, deputy director for state operations.
“We have as many examples of people using the dollars for school clothes, school uniforms,” Proud said.
Brooks said children shouldn’t be denied school supplies but said the program is flawed.
“I don’t think it’s important what percentage of people are abusing the system,” she said. “When you create a program that allows for abuse at any level … taxpayer money is being wasted.”
“It’s definitely been a problem,” she said.
The county received about four working days notice. Had Monroe County been consulted, it would have recommended a voucher program for supplies, said Human Services Commissioner Kelly Reed.
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Though all the grants may not be used for school supplies, getting cash into the hands of those who don’t have it stimulates the economy faster because they spend the money sooner than wealthy people, said economist and social worker Irwin Garfinkel, a professor at the Columbia University School of Social Work.
“In terms of the stimulus, you couldn’t do better,” Garfinkel said.
The state said 68 percent of the cash went to families who receive food stamps but not other aid, indicating that someone in the home is working but doesn’t earn enough to make ends meet.
The program does not require a share from county property taxpayers or state income tax payers and is funded with $140 million in federal stimulus funds and a matching grant of $35 million from George Soros’ Open Society Institute.
The county reports that its phone system and waiting rooms have been pushed to capacity with people inquiring about the benefit and that someone in the waiting room at the social services office was charged with assault Thursday.
“It’s mayhem,” Reed said. “We are without the means to support this.”
The state will not prosecute families for spending the money on items other than school supplies, said Kristin Proud, deputy director for state operations.
“We have as many examples of people using the dollars for school clothes, school uniforms,” Proud said.
Brooks said children shouldn’t be denied school supplies but said the program is flawed.
“I don’t think it’s important what percentage of people are abusing the system,” she said. “When you create a program that allows for abuse at any level … taxpayer money is being wasted.”
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