Unclear how many tax dollars used inappropriately
Updated: Friday, 21 Jun 2013, 6:26 PM EDT
Published : Friday, 21 Jun 2013, 6:21 PM EDT
Published : Friday, 21 Jun 2013, 6:21 PM EDT
- Al Vaughters
- Posted by: Eli George
ALBANY, N.Y. (WIVB) - The State Senate wants to end the ability of those on welfare who receive cash assistance to use that money to pay for things like lottery tickets, cigarettes gambling, strip clubs, drugs and alcohol.
The money comes from your tax dollars and is withdrawn from EBT (Electronic Benefit Transfer) cards. But some lawmakers to do not support a proposed law that would restrict how that money can be used.
EBT cards are loaded up each month with benefits, including those for food stamps and Medicaid. Food stamps are tightly regulated by the federal government and the EBT cards are used much like a debit card, allowing officials to see how the money is spent. But in New York State, cash assistance, which comes from Medicaid, can be used for just about anything once it's withdrawn from an EBT card.
Most of the cash assistance is used the way its supposed to be - on food, like at the Broadway Market, or on rent, utility payments, and the like. Shopkeepers at the Broadway Market gladly accept the cards. But many do not agree with cash assistance being used to pay for beer, lottery tickets, or cigarettes.
Scott MacCallum, who works at Camellia's Meats, says, "It is something you just should not do. That money is there provided for food stamps, and it should not be provided for anything else, other than that."
The problem is, in New York, food stamp recipients who also receive cash assistance can withdraw that money from their EBT card and use it on just about anything - even strip clubs or drugs.
Senator Mark Grisanti said, "The money on those cards are being used to buy alcohol, tobacco, lottery tickets. They are being used at the casino, lap dances."
State lawmakers are trying stop that with the Public Assistance Integrity Act and limit the use of cash assistance to general necessities.
"The cash money is supposed to be used to pay your electric bill, your gas bill, your rent, buy clothing, buy toilet paper," Sen. Grisanti argued.
Lawmakers in the State Senate have passed measures in the last two years that would crack down on abuse of cash assistance. Last year, that bill died in the Assembly, and this year it could meet the same fate.
Critics of the measure, mostly downstate Democrats, say limiting what someone on public assistance can buy reduces them to second class citizens. But even if the bill passes, it would only prevent someone with an EBT card from withdrawing cash assistance inside liquor stores, casinos and any "adult-oriented" entertainment facilities, which means all a welfare recipient would need to do is stop at another ATM before visiting one of those establishments and using their cash assistance.
If the state doesn't act by February, New York stands to lose $120 million in federal funding.
Right now, the Senate is working with banks to develop technology that would block the purchases of non-essentials when a social services debit card is used at the point of sale. Monitoring cash withdrawals from ATMs will be tougher.
The Assembly is considering restricting the use of cash by regulation through the Office of Temporary Disability Assistance. After that, a spokesman for Assembly Speaker Sheldon Silver says the Assembly will consider legislation.
Republicans speculate as much as $4 million in cash assistance is used inappropriately, largely because it is withdrawn between the hours of midnight and 6 a.m., when they argue it is unlikely recipients will be using the money for groceries or to pay bills.
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