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Welfare recipients shopping in Hawaii? GOP shows it’s so
More than $10 million in purchases with state-issued cards was done out of state, including locations as far away as Hawaii and Alaska.
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Welfare recipients in Minnesota used state-issued benefit cards to make more than $10 million in purchases in other states during the past year, including locations as far away as Hawaii and Alaska, data released Thursday showed.
House Republicans released the statistics at a news conference, and state Department of Human Services confirmed the numbers but stressed that the purchases were legal and that many might be cases of Minnesota residents living near Wisconsin and North Dakota and shopping in those states.
"This is a red flag for the taxpayer," said House Minority Leader Marty Seifert, who said he had asked for a legislative audit of the decade-old electronic benefit transfer card system. Seifert said he did not necessarily blame department officials but said the DFL-majority Legislature -- which House Republicans hope to retake political control of in the fall elections -- should be held responsible.
In a one-year period ending in June, state officials identified 48,821 uses of the cards in Illinois that totaled $1.3 million. There were more than 62,000 transactions in North Dakota for $2.2 million, 66,000 in Wisconsin for $2.4 million and 14,000 in Iowa for $498,129. There were also 12,631 uses of the card in Michigan for more than $392,000 and 12,670 transactions in Texas for just over $387,000.
Though the numbers were small, there were 126 transactions in Hawaii for $2,890 and 217 in Alaska for $14,810.
House Republicans acknowledged that the amount of out-of-state spending, which totaled $10.2 million in the past year, was a fraction of the $496.3 million in transactions made. "Some people might say it's only $10 million," said Seifert. "To me, $10 million is $10 million."
DFLers were quick to respond to the data, saying that the controversy "appears directed at Governor [Tim] Pawlenty's own Department of Human Services." House Majority Leader Tony Sertich said the out-of-state transactions totaled just 2 percent of all purchases, and said DFLers welcomed "any effort to eliminate wasteful government spending."
Department officials said the benefit cards were issued for both food and cash, and individuals were given a specific amount monthly on their card. Food card purchases can only be made at recognized grocery stores. Cash card purchases can be made at any store or be used at an automated teller machine, and can be used to buy alcohol and cigarettes.
While eligibility varied by program, department officials said, users of the state's food stamp program had to reside in Minnesota "with an intent to stay." Other state programs, such as the Minnesota Family Investment Program, require a 30-day minimum residency in Minnesota.
Chuck Johnson, the department's assistant commissioner, said state officials regularly study the data, and were not "immediately concerned" by the figures released Thursday. He said officials were unaware whether the data suggested any trends. "We know that in any of our programs there's always a potential for fraud."
Johnson added that recipients visiting family in other states, or for example attending a funeral in another state, could account for some of the phenomenon.
However, "I'm a little surprised to see it happening in Hawaii," he said.
Rep. Laura Brod, R-New Prague, the lead Republican on the House Health and Human Services Committee, said that even though that data presented only a one-year snapshot of the program, there should be concern. The audit request, she said, was to make sure Minnesotans know "why their dollars are being spent in all 50 states."
Mike Kaszuba • 612-673-4388
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Governor: Tim Pawlenty
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- Secretary of State: Mark Ritchie
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