Taxpayer money is for the needy, not for the greedy

One out of every eight people in the Commonwealth receives assistance from the Department of Transitional Assistance (DTA) to meet their basic needs, such as food and housing. DTA programs provide a lifeline to working families and their children, the elderly and people with disabilities and these assistance programs are vital in our communities.

Massachusetts residents who receive assistance services use Electronic Benefit Transfer (EBT) cards, a specialized debit card for government assistance programs that are automatically credited with the recipient’s appropriate amount of benefits each month.

One program offered by DTA is the Supplemental Nutrition Assistance Program (SNAP), more commonly known as food stamps. SNAP provides food and nutritional benefits to more than 466,000 households in Massachusetts and the average monthly SNAP benefit per household is $238.

Last week, Attorney General Martha Coakley announced that a Quincy store owner and dozens of individuals have been charged in connection with fraudulent use of SNAP and accused of using their cards at stores to illegally obtain cash. According to the Attorney General’s office, the investigation remains active and ongoing at other sites in the Commonwealth.

These scams are hurting the people who need help the most. Without programs like SNAP, many families and seniors would be without food and, with the limited taxpayer dollars we have to spend, every penny should go to the people in need. I applaud the Attorney General’s office for pursuing this issue and we will pay close attention to the details of this case.

The Senate has consistently passed regulations to strengthen the EBT card system and institute harsher punishments for those who abuse the system. As a result, eligible recipients are now prohibited from using assistance funds to purchase alcoholic beverages or tobacco products. Furthermore, an individual or store owner who knowingly accepts EBT cards in violation of this new law could face a fine of $1,000 or go to jail for two and a half years, or both.

A recent federal law requires states to prohibit the use of EBT cards in liquor stores, casinos and adult entertainment establishments by 2014. In California, EBT cardholders cannot access cash benefits at ATMs at establishments such as liquor stores, gaming establishments, night clubs, bars and smoke shops. California is currently working with Affiliated Computer Systems, the same vendor used in Massachusetts, on how to block EBT usage in these businesses. 

We are in the process of working on implementation of the federal law. As a next step, we need to study California’s example and block the use of EBT cards to purchase products and services for which these benefits were not intended.

In the Senate, we will continue to monitor the situation and we will look at implementing any further reforms that are necessary during the Senate’s budget debate in May. We also look forward to receiving the results of the Inspector General’s study that was authorized by the EBT Commission this month so we can take action on those recommendations.

This taxpayer money is for the needy, not for the greedy.