RSS FEEDS
Recent Research
SEPTEMBER 30, 2009 | Commentary by ABHILASH SAMUEL
Re-examine Public Welfare Spending
Pennsylvania has, as of this writing, gone 90 days without a budget, longer than any other state. The impasse has been driven by Gov. Rendell's demand for higher spending and new taxes. Though Rendell argues that the budget has been "cut to the bone," the work of a leading member of his own party, Auditor General Jack Wagner, proves
AUGUST 21, 2007 | Commentary by JESSICA RUNK
Public Welfare Needs Assistance
Although the 2007-2008 budget controversy is fading from the limelight, the exorbitant spending it authorizes cannot be overlooked. One of the largest portions of state spending is public welfare, which accounts for 36% of the budget. Since Governor Rendell took office in 2003, General Fund spending on public welfare increased 48
Recent Blog Posts
FEBRUARY 9, 2010
Perpetuating Fraud And Mismanagement
The Department of Public Welfare will receive additional federal funding to support its Low Income Home Energy Assistance Program (LIHEAP). This amount will be used to increase grants by $100 for many households. Eligibility for LIHEAP is based on family size and income. A family of four earning up to $33,075 may qualify for LIHEAP.
In the past the program has come under scrutiny for reasons of fraud and mismanagement. In fact, even after numerous audits by the Auditor General Jack Wagner, the same problems have emerged in subsequent audits, despite recommendations. One audit resulted in the arrest of 18 people for stealing more than $500,000 of LIHEAP funds and related crimes, including many employees in the Department of Public Welfare.
Tens of millions have been estimated in taxpayer losses from the Department of Public Welfare. Yet once again an inefficient program escapes reform, and is instead expanded. Wasteful spending, whether at the state or federal level, only drives up taxes for working Pennsylvanians.
posted by ABHILASH SAMUEL | 07:35 AM | 0 comment
FEBRUARY 2, 2010
Medicaid Errors in PA Cost Upwards of $320 Million
In a news release, PA Auditor General Jack Wagner estimates that - using the Pennsylvania Department of Welfare's (DPW) estimated error rate - improper Medicaid payments cost Pennsylvania taxpayers $320 million per year. But Wagner's audit found an error rate of more than triple what DPW claims. In other words, eliminating Medicaid waste could save taxpayers a nice round figure of $1 billion dollars. (HT Tony Phyrillas)
Auditors found errors in 1,951, or 14.7 percent, of 13,225 Medicaid cases selected randomly from 567,984 Medicaid cases from 90 county assistance offices in 64 counties. DPW has asserted that the error rate is only 4%, but eliminating just 4% of those errors would save Pennsylvania taxpayers $320 million per year, Wagner said.
The failure of DPW to crack down on Medicaid fraud earned former secretary Estelle Richman an appointment with the Obama administration, despite the fact that she has seemingly paid her taxes on time.
Meanwhile, I predict that in his final budget address, one week from today, Governor Rendell will insist that there is nothing left to cut in the state budget.
posted by NATHAN BENEFIELD | 09:05 AM | 0 comment
AUGUST 20, 2009
Auditor General Finds More Waste and Fraud in Pennsylvania Welfare
A new report from Pennsylvania Auditor General Jack Wagner finds that the Special Allowances program in the Department of Public Welfare is "rife with mismanagement and potential for fraud." The audit found that 45% of the cases examined had insufficient documentation to justify payment.
Applied over the entire program, this would represent tens of millions in wasteful spending/potential savings.
Combined with waste and fraud in Medicaid, LIHEAP, and other programs, it is easy to see why the Auditor General thinks Pennsylvania can balance the state budget without tax hikes.
posted by NATHAN BENEFIELD | 02:06 PM | 0 comment
