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CLT UPDATE
Friday, May 31, 2013

The state EBT Card Scandal expands


Maybe we needed the long weekend to recover from last week on Beacon Hill.

Lt. Gov. Tim Murray, the personification of the nonessential state worker, announces he is decamping to his native Worcester, taking with him the real story of his 108-mph, predawn crash in his state car.

State Rep. John Fresolo, a fellow Democrat and Worcesterite, abruptly quits amid reports he is the target of a House Ethics Committee investigation for unspecified Statehouse shenanigans.

Stephen W. Doran, the former chairman of the aforementioned Ethics Committee, is arrested as he leaves the Boston school where he now teaches on charges of trafficking in methamphetamine.

Did we miss anyone? Never mind. The real skulduggery on Beacon Hill last week was being committed both in plain sight and behind closed doors as the Legislature pushed ahead with a juggernaut $34 billion budget and accompanying $500 million tax increase.

A Salem News editorial
Wednesday, May 29, 2013
State's investment strategy: Take more of our money


Republican lawmakers who have repeatedly pressed for welfare system and EBT card reforms hope news the state welfare agency was paying benefits to dead people will be the “straw that broke the camel’s back” to force changes.

Rep. Shaunna O’Connell, a Taunton Republican, said a state auditor’s report released Tuesday proves the need for reforms in a system “infested with abuse.” She called the Department of Transitional Assistance - which oversees $1.7 billion in state and federal benefits - a “runaway train.” ...

Rep. James Miceli, the only Democrat who stood with Republicans at the press conference, said his Democratic colleagues are “getting restless,” and the latest news about welfare fraud could push lawmakers to pass reforms.

“A lot of Democrats are really upset with this, and I think you are going to see it reflected in some votes down the road,” said Miceli, who has served in the House since 1977.

Miceli (D-Wilmington) called the state’s welfare system a “disaster” that wastes millions of dollars.

“Bottom-line the system isn’t working, and it is a horrible system,” he said.

State House News Service
Wednesday, May 29, 2013
Dems "getting restless" as GOP renews call for welfare reforms


A proposed state Senate welfare reform bill will target, among other things, the growing number of waivers that litter the state welfare system and undercut the true intent of public assistance, Senate President Therese Murray said today.

Murray, poised to release what she’s touted as comprehensive legislation in the coming weeks, said “very glaring” problems in the waiver system have allowed people to latch on and stay on the dole long past what officials, including herself, envisioned when they passed welfare reform in the mid-1990s....

Murray’s comments, the first public details she’s provided on the scope of the bill, come a day after state Auditor Suzanne Bump released a scathing report detailing how DTA, over a two-year span, gave $2.4 million in welfare benefits to more than 1,160 people who were dead.

But Murray defended the agency, saying that under interim commissioner Stacey Monahan it has already begun addressing many of the issues the audit highlights.

“She’s already taken this ball and run with it, and has already closed down a lot of the activities that were taking place,” she said.

The Boston Herald
Wednesday, May 29, 2013
State Senate president airs proposed welfare reforms


Massachusetts officials are investigating whether to pursue criminal or civil charges against hundreds of people identified in a new state audit who may have fraudulently collected welfare or illegally sold food benefits for cash.

The report Tuesday by state Auditor Suzanne Bump found $18 million in suspicious welfare payments, including money sent to more than 1,160 recipients listed as dead, and signs that some participants may have sold their electronic benefit cards, which is illegal.

Bump said Wednesday that she sent a copy of the audit to the attorney general’s office and referred the findings to the Bureau of Special Investigations, the unit in her office charged with investigating public assistance fraud and identifying cases for potential prosecution....

“We have requested access to all of the cases mentioned in the audit, so we can conduct a full review of each case, said Department of Transitional Assistance spokesman Matt Kitsos. “These errors highlight the need for a full review.”

But the auditor’s office retorted that welfare officials have not explained how they concluded that the 178 dependents figure was inaccurate and noted that a separate federal review last year also found hundreds of dead beneficiaries on the Massachusetts welfare rolls.

“We cannot just accept what an agency says based on their word,” Bump said, explaining that the department has repeatedly declined to provide supporting documents to auditors. The auditor’s office acknowledged that it has responded in kind by refusing to provide the list of 1,164 dead recipients....

Welfare fraud is not unique to Massachusetts....

The Boston Globe
Thursday, May 30, 2013
Mass. considers charges after welfare audit


Gov. Deval Patrick — who has downplayed welfare abuses as “anecdotes” — played hide-and-seek with the Truth Squad yesterday as we hunted for him and his answers on why the state doled out millions in welfare benefits to dead people.

"I know where he is, but I’m not going to tell you,” said Lt. Gov. Timothy P. Murray, who fielded questions meant for Patrick about a bombshell auditor’s report that millions of dollars were paid to more than 1,100 dead people, while millions were collected in places like Florida, Hawaii and the Virgin Islands.

Patrick was expected to be at his “Sweet P” estate in the Berkshires but apparently decided to come into the State House at the last minute. He slipped in and out virtually undetected by the press.

The Boston Herald
Thursday, May 30, 2013
Deval Patrick MIA after audit


A federal audit found last year that the Department of Transitional Assistance was handing out food stamps to 520 dead people — an alarm apparently unheeded by welfare officials who were shamed this week when a shocking state audit found more than twice that number of dead recipients on the dole.

The USDA, which funds the Supplemental Nutrition Assistance Program, slammed oversight of the state welfare program in an audit quietly released in April 2012....

Though they say they’re still waiting on details on the 1,164 people identified as dead, DTA officials said that among a sample of 178 guardians claiming dead people as dependents that the auditor found, only 17 were actually deceased and had open cases. They’ve all since been closed.

“These errors highlight the need for a full review,” DTA spokesman Matt Kitsos said.

[State Auditor Suzanne] Bump countered that the point of the audit was to test the agency’s systems and “make things work better.”

The Boston Herald
Thursday, May 30, 2013
USDA: 520 dead got benefits in ’10


It’s time to slap photos on EBT cards and crank up oversight of the state’s “broken” welfare system before more dead people can collect benefits, an incensed House Speaker Robert DeLeo told the Herald yesterday.

“Why do we have to let the wound fester? We have to stop this fraud, and we have to stop it now,” DeLeo said, adding he was “appalled” by a state audit released Tuesday that showed $2.4 million paid to more than 1,100 dead people and $27 million to live recipients collecting EBT benefits out of state, including in Alaska and Hawaii.

DeLeo said House proposals to put photos on EBT cards, create a Bureau of Program Integrity and allow the Inspector General to monitor the embattled agency “are needed now more than ever,” and promises by the Patrick administration that they are addressing the problems aren’t enough....

The House reforms are expected to be a hot topic in conference committee after the state Senate — vowing to wait for a comprehensive bill promised by Senate President Therese Murray — gutted the proposals from their budget.

The Boston Herald
Thursday, May 30, 2013
DeLeo proposes EBT cards with photos to prevent fraud


Dead people are collecting welfare benefits and there’s a ghost in the governor’s office.

Only in Massachusetts.

Here’s how bad it’s gotten: Gov. Deval Patrick is hiding out in his Berkshires compound this week, refusing to talk about or take responsibility for the obscene waste of millions of taxpayer dollars.

Patrick’s second-in-command, Lt. Gov. Tim Murray, is left in the State House to fend off media questions about a welfare abuse scandal just days before he quits on voters who elected him to take a higher-paying job at an obscure business group....

No matter what you think of Mitt Romney or Charlie Baker, can you imagine either of those two Republicans not overhauling an agency that’s been throwing money at the dead or people who are very much alive and spending tax money in Las Vegas? ...

If the governor really doesn’t want to work for Massachusetts taxpayers, he should step down and take a job in the Obama administration. His incompetence and inaction will be welcomed in the White House.

The Boston Herald
Thursday, May 30, 2013
Welfare zombies, political ghosts
By Joe Battenfeld


The Patrick administration assures us the number of dead people who collected welfare benefits in Massachusetts is actually far smaller than the more than 1,100 cited in a scathing report by the state auditor this week.

Now don’t we all feel better!

A Boston Herald editorial
Thursday, May 30, 2013
Following up on fraud


The next welfare scandal is going to be the huge balances on some of these EBT cards.

Wait until the Department of Terrorist Assistance (DTA) finally coughs up how much money is on these cards. And yes, Gov. Deval Patrick, this is another one of those “anecdotes.”

Last January a radio listener from Pittsfield sent me a receipt from a local convenience store. Some loafer had run up a tab of $3.28, so he whipped out an EBT card to pay for it. After paying his three bucks, he had $7,066.58 left on the card.

I kid you not. Over seven grand on an EBT card....

The Herald, meanwhile, filed a FOIA for the top 100 EBT card balances. The DTA said it would cost $500 to research its records.

O’Connell asked the DTA for an accounting of the top EBT card balances. This was sometime last winter. When the phone didn’t ring, she knew it was the DTA.

The keeper of public records in the commonwealth is the secretary of state, Bill Galvin, a Democrat. So O’Connell called Galvin’s office and asked them to intervene. But the DTA apparently doesn’t answer to anyone, Democrat or Republican.

“They don’t discriminate on stonewalling,” said O’Connell. “That’s one thing you have to give them.”

The Boston Herald
Thursday, May 30, 2013
Next scandal: Platinum EBT cards
By Howie Carr


The Patrick administration assures us the number of dead people who collected welfare benefits in Massachusetts is actually far smaller than the more than 1,100 cited in a scathing report by the state auditor this week.

Now don’t we all feel better!

A Boston Herald editorial
Thursday, May 30, 2013
Following up on fraud


A testy Gov. Deval Patrick, speaking for the first time about a scathing audit showing $2.4 million in taxpayer money going to dead people, defended his embattled administration last night and questioned whether the abuse was that widespread.

“Wait a minute. Be real careful. Be real careful,” Patrick told the Herald Truth Squad when asked if he’s downplaying the amount of fraud. “Nobody in this administration, including me, is minimizing the seriousness of this.”

But then Patrick proceeded to minimize the findings...

The Boston Herald
Friday, May 31, 2013
Gov: Put fraud in perspective
Patrick downplays extent of state’s welfare abuse


House lawmakers are ready to do battle in a closed-door clash with Senate Democrats after Speaker Robert DeLeo, in the wake of a scathing audit, demanded action on welfare reform even as senators continue to insist any overhaul needs to wait.

The Boston Herald
Friday, May 31, 2013
Emboldened by audit, House renews efforts


The agency that hands out welfare benefits — the one that has failed so spectacularly in its oversight duties over the past year — insists it has embarked on a thorough overhaul of its systems, tightening its screening of applicants, its oversight of beneficiaries and adopting a series of other recommended reforms. The state Department of Transitional Assistance, its leaders insist, is on the case.

They’ll pardon us if that doesn’t exactly inspire confidence. Foxes and henhouses come to mind....

A Boston Herald editorial
Friday, May 31, 2013
Watchdog with bite


Chip Ford's CLT Commentary

We taxpayers are "getting hammered," as a recent candidate and now U.S. Senator Elizabeth Warren infamously declared. We're getting hammered by government which is I'm sure not what she intended to message.

"Welfare fraud is not unique to Massachusetts...." reports the Boston Globe.

How darned comforting.

Even the Democrats are recoiling. The Boston Globe is offering only that "Welfare fraud is not unique to Massachusetts...."

Alleged-Governor Deval Patrick has been holding out in his Richmond “Sweet P” estate in the Berkshires, ducking the media and taxpayers. He finally deigned to speak on the issue yesterday: “Nobody in this administration, including me, is minimizing the seriousness of this,” he asserted, as he went on to minimize again.

No more excuses are available:  Not "anecdotal" nor "leakage."  Today the governor's operative word is “minimize.”

Like the mounting abuse-of-power scandals in Washington, c'mon don't think we're all stupid.

It's rumored from knowledgeable sources that Deval Patrick is President Obama's pick to replace more-by-the-day disgraced U.S. Attorney General Eric Holder as he crashes and burns. The Obama Administration apparently is considering recruiting another Chicago-bred pol, our governor.  Talk about "out of the frying pan and into the fire".

With Tim ("Crash") Murray already taking the big walk, resigning as Lieutenant Governor this week, that would leave us with Secretary of State Bill Galvin as acting-governor. Secretary Galvin, a statewide officeholder by his own election, has always been fair to CLT, with his support for the initiative petition process, his oversight of the elections in which our PAC supports taxpayer-friendly candidates, and with his execution of the state's freedom-of-information-act.  So he would be a big improvement over what we have now:  but we shouldn’t wish Deval Patrick on our country, either.  It’s a dilemma.

Chip Ford


 
 

The Salem News
Wednesday, May 29, 2013

A Salem News editorial
State's investment strategy: Take more of our money


Maybe we needed the long weekend to recover from last week on Beacon Hill.

Lt. Gov. Tim Murray, the personification of the nonessential state worker, announces he is decamping to his native Worcester, taking with him the real story of his 108-mph, predawn crash in his state car.

State Rep. John Fresolo, a fellow Democrat and Worcesterite, abruptly quits amid reports he is the target of a House Ethics Committee investigation for unspecified Statehouse shenanigans.

Stephen W. Doran, the former chairman of the aforementioned Ethics Committee, is arrested as he leaves the Boston school where he now teaches on charges of trafficking in methamphetamine.

Did we miss anyone? Never mind. The real skulduggery on Beacon Hill last week was being committed both in plain sight and behind closed doors as the Legislature pushed ahead with a juggernaut $34 billion budget and accompanying $500 million tax increase.

Together, they threaten to flatten the Bay State’s still struggling economy.

The Senate approved the $34 billion spending plan late Thursday, one month after the House passed a budget with a similar bottom line but different details.

The two bodies will spend June trying to bring the two plans into alignment and deciding how best to pick the pockets of their unsuspecting constituents. By the time the budget goes into effect July 1, those constituents will be in full summertime-and-the-living-is-easy mode.

The tax-and-spend plan will nickel, dime and dollar them at a time when many are hard-pressed to support their own households, never mind their insatiable state government.

Increases in taxes on gasoline, tobacco and businesses are also in the mix. We don’t know the details yet because the tax proposal is being hammered out in secret after a six-member Senate and House conference committee closed its deliberations to the public.

Meanwhile, the state’s real problem — spending — remains largely unaddressed.

The Senate said no, for example, to efforts to amend the budget to require photo ID on electronic benefit transfer cards to reduce the EBT fraud that costs the state millions of dollars a year. Senate leaders promised to work on a “comprehensive” welfare reform plan later. Promises, promises.

As usual, the guardians of the public treasury described their spending increases as “investments” in the future.

But a new study by the Beacon Hill Institute at Suffolk University found the Legislature’s “investments” won’t pay off for average citizens of Massachusetts. In fact, they’ll hurt them.

The study said the half-billion dollar tax plan favored by House Speaker Robert DeLeo and Senate President Therese Murray will result in 2,460 fewer jobs in Massachusetts and reduce disposable income by about $250 per household, according to the Statehouse News Service.

It may not sound like much, but we’re betting most people would prefer the $250 in their own pockets, rather than DeLeo and Murray’s. And the 2,460 unemployed would rather be working.

But there’s good news.

The Beacon Hill Institute said the Legislature’s plan wouldn’t be as rough on the economy and Bay State families as the $1.9 billion tax increase recommended by Gov. Deval Patrick. That plan, which would include an income tax hike, would kill 17,800 jobs and shrink disposable income by $480 per household, the institute said.

Patrick and the Democratic leadership assure us that our short-term pain will translate into a long-term gain for the commonwealth as they wisely use our nickels, dimes and dollars to — as a Statehouse News Service story put it — “make long overdue investments in the state’s transportation network, creating construction jobs and putting the state in better position for long-term economic growth by making it more attractive to existing and potential businesses.”

We have our doubts about that, given how the state’s previous “investments” of billions and billions of our dollars have left us with decaying infrastructure and a soft economy.

If only the governor and Legislature would make some long overdue investments in the citizens of the commonwealth by reining in spending so they can keep more of their own money.

Then we might see a real return on investment.


State House News Service
Wednesday, May 29, 2013

Dems "getting restless" as GOP renews call for welfare reforms
By Colleen Quinn


Republican lawmakers who have repeatedly pressed for welfare system and EBT card reforms hope news the state welfare agency was paying benefits to dead people will be the “straw that broke the camel’s back” to force changes.

Rep. Shaunna O’Connell, a Taunton Republican, said a state auditor’s report released Tuesday proves the need for reforms in a system “infested with abuse.” She called the Department of Transitional Assistance - which oversees $1.7 billion in state and federal benefits - a “runaway train.”

O’Connell, who said she grew up in public housing with her parents, said fraud in the system is hurting people who truly need benefits.

“We need to save this program. This program is being destroyed by people who are looking away from fraud,” O’Connell said Wednesday at a press conference detailing reform proposals.

Rep. James Miceli, the only Democrat who stood with Republicans at the press conference, said his Democratic colleagues are “getting restless,” and the latest news about welfare fraud could push lawmakers to pass reforms.

“A lot of Democrats are really upset with this, and I think you are going to see it reflected in some votes down the road,” said Miceli, who has served in the House since 1977.

Miceli (D-Wilmington) called the state’s welfare system a “disaster” that wastes millions of dollars.

“Bottom-line the system isn’t working, and it is a horrible system,” he said.

The state auditor discovered 1,164 cases where welfare benefits worth nearly $2.4 million continued to flow to enrollees after they were deceased or to recipients using a dead person’s Social Security number. In some cases, store purchases and ATM transactions were made after a recipient’s date of death, pointing to unauthorized people using the welfare benefits, according to the auditor’s report.

Auditor Suzanne Bump said DTA did not do enough to validate Social Security numbers and there was not enough emphasis within the agency on preventing fraud and abuse. One in eight people in the state receive welfare benefits through DTA.

Health and Human Services Secretary John Polanowicz said the auditor did not provide DTA with detailed information on the majority of the cases identified in the report, “and therefore we cannot verify those findings.”

O’Connell and other lawmakers said DTA should be required to validate Social Security numbers before anyone receives a “dime of taxpayers’ money.” The practice of self-declaration, allowing someone to give their Social Security number without verification, or the use of temporary numbers, needs to end, they said.

Lawmakers also renewed their call for photos on electronic benefit cards (EBT), a proposal House lawmakers passed in the fiscal year 2013 state budget, but the Senate did not include in its version.

DTA also needs to stop reissuing cards to people who have requested more than four new cards, lawmakers said. O’Connell estimates more than 1,000 cards a day are replaced by the department.

The audit report said more than 9,800 people requested and received 10 or more EBT replacement cards since 2006, with one individual receiving as many as 127 cards. DTA officials said starting in December 2012 they began monitoring clients who request four or more replacement cards within a 12-month period.

Rep. James Lyons, an Andover Republican, said taxpayers are being forced to subsidize people who defraud the system. Lyons said he has repeatedly asked the Patrick administration to detail spending on benefits.

“To date, the governor refuses to answer those questions. So my question is to the governor, governor is it that you have absolutely no idea where our tax dollars are going? Or is it that you do know and what we are finding out by different reports from the inspector general and the auditor is that the hardworking taxpayers are being continually forced to subsidize those folks who are breaking the rules,” Lyons said.

DTA officials say they have already taken action to correct the problems, pointing to a 100-day action plan released in March aimed at preventing fraud.

“There is no amount of fraud or waste or abuse that I will tolerate. One dollar is too much,” Interim DTA Commissioner Stacey Monahan said in a conference call with reporters Tuesday.

Monahan said the department last June began using a federal data match known as the “Death Match,” to eliminate the lag time between when an individual is deceased and when their benefits are shut off. The auditor’s report looked at the period from July 1, 2010 to Dec. 31, 2012.

DTA asked the auditor’s office for a list of the 1,164 cases where benefits were paid to dead people to conduct a review, according to Monahan, who was appointed in February after former DTA Commissioner Daniel Curley was asked to resign amid reports of lax oversight of welfare benefit spending.

In some cases, welfare benefits to the deceased continued for six to 27 months. Monahan said she does not know how it went on for so long, adding she was appointed to address problems.

Other lawmakers at the press conference calling for reforms included: Reps. Geoffrey Diehl (R-Whitman), Marc Lombardo (R-Billerica), Leah Cole (R-Peabody), and Peter Durant (R-Spencer).


The Boston Herald
Wednesday, May 29, 2013

State Senate president airs proposed welfare reforms
By Matt Stout


A proposed state Senate welfare reform bill will target, among other things, the growing number of waivers that litter the state welfare system and undercut the true intent of public assistance, Senate President Therese Murray said today.

Murray, poised to release what she’s touted as comprehensive legislation in the coming weeks, said “very glaring” problems in the waiver system have allowed people to latch on and stay on the dole long past what officials, including herself, envisioned when they passed welfare reform in the mid-1990s.

“(Welfare) is not a lifetime commitment to care. It is a hand to get you up when you’re having a hard time,” Murray said this morning after speaking at the Boston Irish Business Awards breakfast, where she was also honored.

“If you had a child and you had another child while you were on welfare, there wasn’t supposed to be a waiver for that. You weren’t supposed to be able to stay in the system and get money for the second or the third or the fourth child. Those waivers have been given over the last several years, and we’ve come to find this out really last year when we started taking a look at it.”

Murray said the out-of-control waivers have extended to several areas as well, including the welfare system’s work and education programs.

“There are a lot of loopholes,” she said.

Murray also hinted that she’s in favor of adding photos to EBT cards, a hotly debated topic that was passed in the House budget and gutted in the Senate. She said that “while it may cost something,” a measure requiring photos or some ID would help address EBT card trafficking.

Department of Transitional Assistance officials have argued that photos were cut from the cards during the Romney administration in 2004, and haven’t proven to cut down on fraud.

“I know there’s a difference in opinion whether you need a picture on these cards or not,” Murray said, “But law enforcement arrest these people, and they have two to three of these cards in their pockets. And Social Security numbers.”

Murray’s comments, the first public details she’s provided on the scope of the bill, come a day after state Auditor Suzanne Bump released a scathing report detailing how DTA, over a two-year span, gave $2.4 million in welfare benefits to more than 1,160 people who were dead.

But Murray defended the agency, saying that under interim commissioner Stacey Monahan it has already begun addressing many of the issues the audit highlights.

“She’s already taken this ball and run with it, and has already closed down a lot of the activities that were taking place,” she said.


The Boston Globe
Thursday, May 30, 2013

Mass. considers charges after welfare audit
By Todd Wallack


Massachusetts officials are investigating whether to pursue criminal or civil charges against hundreds of people identified in a new state audit who may have fraudulently collected welfare or illegally sold food benefits for cash.

The report Tuesday by state Auditor Suzanne Bump found $18 million in suspicious welfare payments, including money sent to more than 1,160 recipients listed as dead, and signs that some participants may have sold their electronic benefit cards, which is illegal.

Bump said Wednesday that she sent a copy of the audit to the attorney general’s office and referred the findings to the Bureau of Special Investigations, the unit in her office charged with investigating public assistance fraud and identifying cases for potential prosecution.

“We identified some very suspicious and potentially illegal food stamp misuse, and we will be pursuing those individual cases further in order to determine whether charges should be brought,” Bump said Wednesday.

A spokeswoman for Attorney General Martha Coakley said her office is “carefully reviewing” the audit to determine if she should order a welfare fraud investigation.

Also on Wednesday, a war of words developed over the audit’s accuracy, as the auditor and welfare officials slammed each other for withholding infor­mation. Officials at the Department of Transitional Assistance suggested that the problem of dead welfare recipients may be overstated.

Agency officials said Wednesday that they could not confirm whether all 1,164 recipients actually received benefits after they died because it has yet to receive the names from the auditor. And they said a separate figure in the audit — the number of supposedly dead dependents claimed by guardians for welfare benefits — was sharply inflated. The agency said it discovered that nearly half of the 178 people were still alive, some were duplicates, and others had already been dropped from the welfare rolls.

“We have requested access to all of the cases mentioned in the audit, so we can conduct a full review of each case, said Department of Transitional Assistance spokesman Matt Kitsos. “These errors highlight the need for a full review.”

But the auditor’s office retorted that welfare officials have not explained how they concluded that the 178 dependents figure was inaccurate and noted that a separate federal review last year also found hundreds of dead beneficiaries on the Massachusetts welfare rolls.

“We cannot just accept what an agency says based on their word,” Bump said, explaining that the department has repeatedly declined to provide supporting documents to auditors. The auditor’s office acknowledged that it has responded in kind by refusing to provide the list of 1,164 dead recipients.

Regardless of the exact number of suspicious welfare payments, one lawmaker urged the state to aggressively pursue charges against anyone who wrongfully obtained benefits. In all, more than 885,000 people received cash or food assistance from the agency, or one in seven Massachusetts residents, at a cost of $1.7 billion last year.

“I think the harshest penalties need to be imposed to send a strong message that we are not going to tolerate fraud in public assistance programs,” said Representative Shaunna O’Connell, a Taunton Republican, who has been pushing for legislation to make it more difficult to qualify for public assistance.

Welfare fraud is not unique to Massachusetts.

An audit last year by the US Department of Agriculture’s inspector general found problems with food benefits in all 10 states it reviewed, including more than 27,000 recipients who appeared to be dead, used a deceased individual’s Social Security number, had erroneous Social Security numbers, received benefits in multiple states, or were otherwise disqualified from receiving the benefits.

In Massachusetts alone, the Agriculture Department audit identified more than 900 participants with “questionable eligibility,” including 520 who were listed in the Social Security Administration's list of deaths.

Massachusetts officials confirmed that someone used the benefits after the client died in 59 of the 268 cases it reviewed.

But there is no indication that Massachusetts was worse than other states, and the incidents amounted to a tiny percentage of the overall caseload. The federal audit flagged 0.12 percent of beneficiaries in Massachusetts and 0.20 percent in all the states it reviewed.

Bump’s audit is just the latest report to fault the Transitional Assistance Department for not doing more to prevent fraud and abuse. The agency’s former director resigned in January after a report from the state inspector general suggested that the state was squandering $25 million a year on improper benefits.

But the interim director said she has already made significant progress in implementing a series of steps to make sure benefits only go to those who are truly eligible, including cross-checking data that recipients provided against other government databases.

In addition, department officials said they will do everything they can do recoup overpayments, noting that the agency has already referred 5,000 cases of potential fraud this fiscal year to the Bureau of Special Investigations, including several flagged by the latest audit.

Bump’s welfare review focuses on payments between July 2010 and December 2012, meaning that virtually all of the suspicious welfare payments occurred within the three-year statute of limitations for prosecution if investigators determine fraud was committed.

State and federal prosecutors have already pursued cases similar to the ones cited by Bump in the past.

Last year, two former owners of a market in Holyoke were sentenced to more than a year in prison on federal charges they illegally gave customers cash for food stamps.

A Quincy store owner and 21 others were charged in state court last April with buying or selling food benefits.

And earlier this month, a Medford woman was indicted for fraudulently collecting more than $161,000 in state and federal benefits.

Bump said the state would probably not press criminal charges in cases in which a family member simply neglected to alert the state right away when a relative died, though the state could try to recoup any aid received after the beneficiary died.

But Bump said the state would alert the Social Security Administration if it finds any cases in which someone wrongfully used someone else’s Social Security number to fraudulently obtain government aid.

“You have to look at intent,” she said.

The federal audit figures reflect a broader challenge facing nearly every company or agency that provides long-term benefits, whether it’s Social Security, a pension, or welfare assistance. How do you find out right away when someone dies?

In many cases, family members notify the agency or regulators find out when mail is returned as undeliverable, but that doesn’t always happen.

So agencies typically consult state or federal lists of deaths. But not every database is complete.

And matches sometimes fail because of data entry errors or different spellings of names.

Nor is the issue new. In 1991, the General Accounting Office found 3,000 cases in Maryland, Pennsylvania, and the District of Columbia in which recipients continued to draw food stamps and other welfare benefits long after they died.


The Boston Herald
Thursday, May 30, 2013

Deval Patrick MIA after audit
By Hillary Chabot


Gov. Deval Patrick — who has downplayed welfare abuses as “anecdotes” — played hide-and-seek with the Truth Squad yesterday as we hunted for him and his answers on why the state doled out millions in welfare benefits to dead people.

“I know where he is, but I’m not going to tell you,” said Lt. Gov. Timothy P. Murray, who fielded questions meant for Patrick about a bombshell auditor’s report that millions of dollars were paid to more than 1,100 dead people, while millions were collected in places like Florida, Hawaii and the Virgin Islands.

Patrick was expected to be at his “Sweet P” estate in the Berkshires but apparently decided to come into the State House at the last minute. He slipped in and out virtually undetected by the press.

Murray, when asked why he had to take the welfare hit instead of his boss, waxed nonsequitorial.

“Most days in my 15 years as a lieutenant governor, governor, city councilor have been good days, so I’m going to miss it,” Murray mused.

His spokeswoman later explained the soon-to-be-former lite guv meant “mayor,” not “governor.”

This is Murray’s last week in office. The ex-Worcester mayor took a job heading the Worcester Chamber of Commerce, after his political career hit speed bumps with a mysterious predawn car crash and ties to disgraced former Revere Housing Authority Chairman Michael E. McLaughlin.

Murray ultimately passed the welfare buck to Health and Human Services Secretary John W. Polanowicz.

“One of the things and the decisions in why we brought in Secretary Polanowicz he’s a proven, capable administrator,” he said.

And that, apparently, is Murray’s way of saying the state is in the best of hands.


The Boston Herald
Thursday, May 30, 2013

USDA: 520 dead got benefits in ’10
By Matt Stout


A federal audit found last year that the Department of Transitional Assistance was handing out food stamps to 520 dead people — an alarm apparently unheeded by welfare officials who were shamed this week when a shocking state audit found more than twice that number of dead recipients on the dole.

The USDA, which funds the Supplemental Nutrition Assistance Program, slammed oversight of the state welfare program in an audit quietly released in April 2012.

The USDA audit from fiscal year 2010 states:

• 820 Bay Staters on welfare were using an “invalid” temporary Social Security number for more than one year.

• 611 households exceed “gross or net income” levels of the SNAP program.

• 520 Massachusetts SNAP participants were listed as dead.

• 222 were cashing in under “two separate households” in the state.

• 126 people were also enrolled in the SNAP program in other states.

The findings, according to state Auditor Suzanne M. Bump, back up her office’s audit released this week, which found $2.4 million going 1,164 people who were either dead or using a dead person’s Social Security number.

DTA has blasted Bump’s audit for what it called “errors” and said it is working on a “100-day plan” to fix it all.

“I stand by the findings in my audit,” Bump said. “Repeatedly, after revealing our findings to DTA, they would offer their explanation but not offer the supporting documentation. So we must trust our own analysis.”

Though they say they’re still waiting on details on the 1,164 people identified as dead, DTA officials said that among a sample of 178 guardians claiming dead people as dependents that the auditor found, only 17 were actually deceased and had open cases. They’ve all since been closed.

“These errors highlight the need for a full review,” DTA spokesman Matt Kitsos said.

Bump countered that the point of the audit was to test the agency’s systems and “make things work better.”

The back-and-forth comes on the heels of months of Herald reports describing tens of millions in welfare benefits being mismanaged by the DTA.

Officials have also said the state and the USDA have been in discussions to resolve more than $27 million DTA overpaid to welfare recipients in food stamps. Kitsos said he had no updates yesterday.


The Boston Herald
Thursday, May 30, 2013

DeLeo proposes EBT cards with photos to prevent fraud
By Matt Stout


It’s time to slap photos on EBT cards and crank up oversight of the state’s “broken” welfare system before more dead people can collect benefits, an incensed House Speaker Robert DeLeo told the Herald yesterday.

“Why do we have to let the wound fester? We have to stop this fraud, and we have to stop it now,” DeLeo said, adding he was “appalled” by a state audit released Tuesday that showed $2.4 million paid to more than 1,100 dead people and $27 million to live recipients collecting EBT benefits out of state, including in Alaska and Hawaii.

DeLeo said House proposals to put photos on EBT cards, create a Bureau of Program Integrity and allow the Inspector General to monitor the embattled agency “are needed now more than ever,” and promises by the Patrick administration that they are addressing the problems aren’t enough.

“Maybe they’re doing their best,” DeLeo said, “but as speaker of the House, I’m not going to just sit back and wait for the next auditor’s report to make sure that everything is OK. It’s a system that is just broken.”

The House reforms are expected to be a hot topic in conference committee after the state Senate — vowing to wait for a comprehensive bill promised by Senate President Therese Murray — gutted the proposals from their budget.

Murray yesterday outlined part of the bill’s scope, which she said will hone in on “very glaring” loopholes that have allowed waivers to run wild and recipients to stay on the dole well past what officials, including herself, envisioned when they passed welfare reform in the mid-1990s.

She also hinted at supporting photos on EBT cards in the state’s battle against card trafficking. “Law enforcement arrest these people, and they have two to three of these cards in their pockets,” Murray told the Herald. “And Social Security numbers.”

DeLeo said he’s excited to see the bill, but asked: Why wait until then?

“We need to act immediately,” he said.

Meanwhile, Gov. Deval Patrick, who despite reportedly slipping in and out of the State House, remained mum on state Auditor Suzanne M. Bump’s findings.

“I want to hear the executive branch say, ‘You’re right, it is bad, and we’ll fix it.’ And I haven’t heard that,” said state Rep. David P. Linsky (D-Natick), chair of the House Committee on Post Audit and Oversight, which is currently investigating welfare practices. “I’m not going to tell them how to do their business, but I haven’t heard anything from the governor.”


The Boston Herald
Thursday, May 30, 2013

Welfare zombies, political ghosts
By Joe Battenfeld


Dead people are collecting welfare benefits and there’s a ghost in the governor’s office.

Only in Massachusetts.

Here’s how bad it’s gotten: Gov. Deval Patrick is hiding out in his Berkshires compound this week, refusing to talk about or take responsibility for the obscene waste of millions of taxpayer dollars.

Patrick’s second-in-command, Lt. Gov. Tim Murray, is left in the State House to fend off media questions about a welfare abuse scandal just days before he quits on voters who elected him to take a higher-paying job at an obscure business group.

The governor’s former political aide, Stacey Monahan, who just a few years ago was organizing parties for Democratic convention delegates, is supposed to be in charge of fixing the dysfunctional Department of Transitional Assistance. Guess who gave her the job?

Massachusetts right now is rudderless, even by Beacon Hill standards. The welfare department is a national joke, a state drug lab screw-up led to the release of dangerous prisoners, and lax oversight at the state board regulating pharmacies helped contribute to dozens of meningitis deaths across the country.

We need a strong chief executive to kick butt, cut waste, fire people and restore confidence in our government. Chris Christie comes to mind.

Instead we’ve got Deval Patrick camped out in the Berkshires Tuesday while a fellow Democrat, Auditor Suzanne Bump, was holding a press conference to announce the results of a scathing investigation into welfare abuse.

“Who is leading our state?” state Rep. Shaunna O’Connell (R-Taunton) said. “We have no leadership.”

That’s not entirely true. Patrick did rush back to Beacon Hill to address a crisis yesterday — but not to address the massive problems in the DTA. He only came back in case he was needed to break a crucial tie vote in the Governor’s Council. Turns out he wasn’t needed, because he didn’t even have enough juice to win approval of a lowly district court judge.

But while Patrick was back in his office, he made sure not to show his face and steered clear of prying reporters. That’s leadership for you.

No matter what you think of Mitt Romney or Charlie Baker, can you imagine either of those two Republicans not overhauling an agency that’s been throwing money at the dead or people who are very much alive and spending tax money in Las Vegas?

Now the Herald has discovered there was an earlier federal audit showing more than 500 other dead people got food stamp money.

This should have been a clear sign it was time to blow up the welfare department, but nothing was done and the problems just got worse.

If the governor really doesn’t want to work for Massachusetts taxpayers, he should step down and take a job in the Obama administration. His incompetence and inaction will be welcomed in the White House.


The Boston Herald
Thursday, May 30, 2013

A Boston Herald editorial
Following up on fraud


The Patrick administration assures us the number of dead people who collected welfare benefits in Massachusetts is actually far smaller than the more than 1,100 cited in a scathing report by the state auditor this week.

Now don’t we all feel better!

Yes, in the hours after Auditor Suzanne Bump released her report it was all about parsing the numbers. But may we humbly suggest that those who would quibble with the accounting actually sit down and read the whole report?

Because it isn’t just the zombie-benefits problem.

It’s the individual who claimed to have had his EBT card lost or stolen — *127 times.* It’s the use of a Massachusetts benefits card in St. Thomas — over a period of four months (surprise, they happened to be the coldest months of the year in New England). It’s the double-dipping, and all of the other clear signals of fraud that DTA missed along the way.

In sum, it’s the utter failure of the overseers of public assistance programs to do much overseeing.

The Department of Transitional Assistance under interim commissioner Stacey Monahan is committed to reforms, the administration insists, spelling out changes already made in response to the auditor’s findings. But more needs to be done to restore public confidence.

Senate President Therese Murray yesterday said she plans to release a comprehensive welfare reform bill in the coming weeks. She’s eyeing the waivers that allow some individuals to collect welfare seemingly *ad infinitum.* She hinted at support for putting photo IDs on EBT cards, to reduce fraud.

Murray and House Speaker Robert DeLeo understand the politics of this. It’s important they get the policy right, too.

Calls for reform are hardly an attack on the poor, as some have argued. Reforms are needed not just to protect taxpayers — but to protect those individuals who have a *legitimate* need for government assistance.


The Boston Herald
Thursday, May 30, 2013

Next scandal: Platinum EBT cards
By Howie Carr


The next welfare scandal is going to be the huge balances on some of these EBT cards.

Wait until the Department of Terrorist Assistance (DTA) finally coughs up how much money is on these cards. And yes, Gov. Deval Patrick, this is another one of those “anecdotes.”

Last January a radio listener from Pittsfield sent me a receipt from a local convenience store. Some loafer had run up a tab of $3.28, so he whipped out an EBT card to pay for it. After paying his three bucks, he had $7,066.58 left on the card.

I kid you not. Over seven grand on an EBT card.

There aren’t too many ways to run up seven grand plus on your EBT card. Of course it’s easy if you never use the card while every month you’re getting a new direct deposit of taxpayer cash.

But the only ways not to spend down the balance are because 1) you don’t need an EBT card at all or 2) you have more than one EBT card.

It’s got to be one or the other, right?

A month or so after getting the receipt, I gave it to state Rep. Shauna O’Connell (R-Taunton). She’s served on some of these commissions investigating the fiasco that is Deval Patrick’s DTA, so I figured maybe she could get an answer.

The Herald, meanwhile, filed a FOIA for the top 100 EBT card balances. The DTA said it would cost $500 to research its records.

O’Connell asked the DTA for an accounting of the top EBT card balances. This was sometime last winter. When the phone didn’t ring, she knew it was the DTA.

The keeper of public records in the commonwealth is the secretary of state, Bill Galvin, a Democrat. So O’Connell called Galvin’s office and asked them to intervene. But the DTA apparently doesn’t answer to anyone, Democrat or Republican.

“They don’t discriminate on stonewalling,” said O’Connell. “That’s one thing you have to give them.”

At the end of Auditor Suzanne Bump’s scorching report on EBT fraud this week, she asked the DTA for an accounting of last year’s “missing” 47,000 recipients — a scandal that came to light after a Herald front-page story.

The DTA had conducted what amounted to a Democrat voter-registration drive among layabouts, by sending out a first-class mailing to all 480,000 of the state’s EBT card holders.

Just under 10 percent of the letters came back as undeliverable. Either because 1) they no longer lived at their previous addresses or 2) they never existed to begin with, except for the purposes of committing welfare fraud.

It’s got to be one or the other, right? Deval Patrick dismissed it as mere “leakage.” The DTA told Bump to take a hike.

The DTA called Secretary Galvin’s office the other day and told them that O’Connell should be hearing something by yesterday. Well, today is Thursday, and guess what?

When the phone doesn’t ring, Shauna, you’ll know it’s the DTA.

--------------------------------

The Boston Herald
Thursday, May 30, 2013

A Boston Herald editorial
Following up on fraud


The Patrick administration assures us the number of dead people who collected welfare benefits in Massachusetts is actually far smaller than the more than 1,100 cited in a scathing report by the state auditor this week.

Now don’t we all feel better!

Yes, in the hours after Auditor Suzanne Bump released her report it was all about parsing the numbers. But may we humbly suggest that those who would quibble with the accounting actually sit down and read the whole report?

Because it isn’t just the zombie-benefits problem.

It’s the individual who claimed to have had his EBT card lost or stolen — 127 times. It’s the use of a Massachusetts benefits card in St. Thomas — over a period of four months (surprise, they happened to be the coldest months of the year in New England). It’s the double-dipping, and all of the other clear signals of fraud that DTA missed along the way.

In sum, it’s the utter failure of the overseers of public assistance programs to do much overseeing.

The Department of Transitional Assistance under interim commissioner Stacey Monahan is committed to reforms, the administration insists, spelling out changes already made in response to the auditor’s findings. But more needs to be done to restore public confidence.

Senate President Therese Murray yesterday said she plans to release a comprehensive welfare reform bill in the coming weeks. She’s eyeing the waivers that allow some individuals to collect welfare seemingly ad infinitum. She hinted at support for putting photo IDs on EBT cards, to reduce fraud.

Murray and House Speaker Robert DeLeo understand the politics of this. It’s important they get the policy right, too.

Calls for reform are hardly an attack on the poor, as some have argued. Reforms are needed not just to protect taxpayers — but to protect those individuals who have a *legitimate* need for government assistance.


The Boston Herald
Friday, May 31, 2013

Gov: Put fraud in perspective
Patrick downplays extent of state’s welfare abuse
By Joe Battenfeld and Hillary Chabot


SPRINGFIELD — A testy Gov. Deval Patrick, speaking for the first time about a scathing audit showing $2.4 million in taxpayer money going to dead people, defended his embattled administration last night and questioned whether the abuse was that widespread.

“Wait a minute. Be real careful. Be real careful,” Patrick told the Herald Truth Squad when asked if he’s downplaying the amount of fraud. “Nobody in this administration, including me, is minimizing the seriousness of this.”

But then Patrick proceeded to minimize the findings.

“What I’m asking you to do, and the public and the auditor to do, is also put it in proper perspective,” Patrick said.

“One instance of someone gaming the system is wrong. But 99.9 plus percent of it being done the right way is also something that has to be acknowledged,” Patrick said after addressing graduates at Springfield Technical Community College.

The governor, who has been at his Berkshires compound most of the week without even releasing a statement about the audit, defended his absence from the State House, saying “I’m still in the state.” Patrick is leaving for Chicago today for a speaking appearance.

State Auditor Suzanne M. Bump’s audit has caused a furor in the Legislature, with some lawmakers asking for immediate reforms. The governor’s Health and Human Services Secretary, John Polanowicz, has said he’s looking into criminal charges against those caught with improperly getting benefits.

Patrick said he’s open to reform but still has confidence in his team and the acting head of the Department of Transitional Assistance, Stacey Monahan, a former executive director of the Democratic Party.

“She’s got a good plan, she’s working on it and I think the takeaway is it would do everyone well to remember that 99.9 percent of that money is spent appropriately,” he said. “We’ve got to track down the fraction of a percent that’s not.”

Patrick repeatedly questioned whether Bump’s report was accurate, and asked whether Bump, a former Patrick Cabinet member, is doing a bad job, replied: “I think it’s too soon to say.” But he said he wants Bump’s office to produce all the cases cited in the audit, not just those reviewed by his administration.

“We’ve been given 178 and all but 17 are not a problem so that is concerning when we look at a report that says some 1,200 cases are ones where people have been paid benefits that are dead,” he said. “We want to get to the facts and beyond the sensationalism.

“Obviously it’s an infuriating audit; if even one person is abusing that’s a serious problem ... but it’s also infuriating that of 178 samples we’ve been given a small fraction are problematic,” he added.

Patrick’s warning comes as a war of words erupted yesterday between HHS Secretary Polanowicz and Bump. Polanowicz sent a sharply worded letter yesterday blasting facts in the report as “false.”


The Boston Herald
Friday, May 31, 2013

Emboldened by audit, House renews efforts
By Matt Stout


House lawmakers are ready to do battle in a closed-door clash with Senate Democrats after Speaker Robert DeLeo, in the wake of a scathing audit, demanded action on welfare reform even as senators continue to insist any overhaul needs to wait.

House Ways and Means chairman Rep. Brian Dempsey (D-Haverhill) is poised to take up DeLeo’s fight to reform the embattled Department of Transitional Assistance, including adding photos on EBT cards, after lawmakers yesterday set a conference committee to hash out the budget.

The speaker renewed his push for reform this week after Auditor Suzanne Bump’s report found $18 million in questionable welfare benefits, including $2.4 million to people who were dead or using dead people’s Social Security numbers.

But senators pushing Senate President Therese Murray’s plan to tackle welfare reform in a separate bill are sticking to their guns.

“I don’t think you’ll ever hear someone say we don’t need reform of this system,” Sen. Jennifer Flanagan (D-Leominster) said. “It needs a true vetting.”

Federal authorities also are digging into Bump’s audit. The U.S. Department of Agriculture, which oversees the federal food stamps program, is working with the DTA “to ensure that the program is administered in full compliance with program rules and regulations,” a USDA spokesman said.

Meanwhile, Plymouth County District Attorney Tim Cruz said he plans to keep in contact with auditors for evidence of chargeable fraud.

“This appears to be a concerted effort by individuals to cheat the system,” Cruz said. “It’s absurd. I’m more than happy to prosecute as strong as we can people who are stealing public funds.”

Also yesterday, Health and Human Services Secretary John Polanowicz disputed some of Bump’s findings, saying a number of cases have been resolved. Bump stood by her audit, however, saying that the DTA had been given an opportunity to address the findings before they were finalized.


The Boston Herald
Friday, May 31, 2013

A Boston Herald editorial
Watchdog with bite


The agency that hands out welfare benefits — the one that has failed so spectacularly in its oversight duties over the past year — insists it has embarked on a thorough overhaul of its systems, tightening its screening of applicants, its oversight of beneficiaries and adopting a series of other recommended reforms. The state Department of Transitional Assistance, its leaders insist, is on the case.

They’ll pardon us if that doesn’t exactly inspire confidence. Foxes and henhouses come to mind.

But there’s an intriguing proposal floating around Beacon Hill that deserves serious consideration by the Legislature as it considers adopting welfare reforms in the coming weeks.

The House of Representatives, in its budget proposal for fiscal 2014, called for appointing a representative of the state inspector general’s office to an oversight role within DTA. Rep. Shaunna O’Connell (R-Taunton) floated a similar idea back in February.

House Speaker Robert DeLeo and his team understand the need for close oversight, but as with all other EBT benefits reforms this one hit a roadblock in the Senate, which is still compiling a mystery reform bill behind closed doors.

That roadblock ought to be temporary. The IG himself sees an important role for third-party oversight of an agency responsible for distributing $1 billion in taxpayer-funded cash benefits.

“There’s been precedent for that, because we have a similar type of position at the Department of Transportation,” Inspector General Glenn Cunha told the State House News Service. “It allows us to maintain our independence and do what our statutory mandate is, to prevent and detect fraud, waste and abuse.”

The state auditor’s office, of course, plays a critical role here. The bombshell report released this week by Auditor Suzanne Bump has surely helped prod the Patrick administration toward overdue changes.

But an audit of DTA’s systems and controls reveals waste, fraud and abuse after it has happened. Embedding a representative of the inspector general’s office within DTA might help ensure it never happens in the first place.

 

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