Wow! According to a report issued last week by Pa. State Auditor General Jack Wagner, Pennsylvanians receiving public assistance made $5.2 million in out-of-state purchases or cash withdrawals in May 2010 using Electronic Benefits Transfer (EBT) cards, but his office could not analyze the legality of any of the nearly 95,000 transaction because the Department of Public Welfare (DPW), who issues the EBT card, has refused repeated requests to provide records and supporting documentation.
According to a news release on the auditor general’s website, auditors have requested EBT information from the DPW on Aug. 9, 2010, Sept. 14, 2010, Nov. 15, 2010 and April 21, 2011. All requests have been repeatedly denied even though Wagner has stressed that he would work with the DPW to protect the confidentiality of individual recipients.
EBT or ACCESS cards provide public assistance recipients with electronic access to their benefits. Those benefits come from several state programs including Temporary Assistance for Needy Families, the Supplemental Nutrition Assistance Program, Special Allowances, and general assistance. According to Wagner’s report, in May 2010, approximately 750,000 Pennsylvanians had EBT cards. On average, approximately $200 million is spent monthly using EBT cards.
Recipients are able to use their EBT card to obtain cash benefits through ATMs located throughout the state and make cash purchases and receive cash back through point-of-sale terminals at licensed retailers. Licenses are available through the United States Department of Agriculture.
State law prohibits individuals from using EBT cards to purchase liquor or alcohol but is that enough? Last year California banned EBT card use at adult entertainment businesses, gambling establishments, spas and massage parlors, smoke shops, tattoo and piercing shops, bail bond agencies and on cruise ships.
While many transactions may well be legitimate, Wagner notes one case of obvious fraud where someone used an EBT card to withdraw more than $147,000 from a welfare account in installments of $1,500.
At a time when budgets are cut and funding becomes scarce, it is important for all agencies to open themselves up for review. Sen. Bob Mensch (R-24) has often mentioned his concern over Pennsylvania’s bloated DPW. Wagner’s report solidifies Mensch’s concerns.
Wagner made a number of recommendations to ensure that recipients use EBT cards in a proper manner including: Develop an internal review process to monitor EBT card usage to ensure funds are spent in accordance with the intended purpose of the various assistance programs; Provide proactive leadership and appropriate policies and procedures to senior management overseeing EBT usage to ensure that they are effectively operating various programs and are held accountable for taxpayer dollars; Adequately monitor and resolve inappropriate EBT activity, determining periodically if recipients still reside in Pennsylvania; Remove EBT card access to ATMs and point-of-sale card readers that are located in establishments deemed inconsistent with the intent of the social service programs.
There are too many people out there who truly need this assistance. Allowing abusers to roam free with taxpayers’ money intended to help those in need is a disgrace.
Armed with Wagner’s latest report, it is well past time for state legislators to call officials of the DPW on the carpet and make them accountable for the money they hand out. Pennsylvanians can’t afford a welfare system that is “out of control.”