(The Center Square) — The number of Pennsylvanians receiving food stamps and Medicaid is skyrocketing compared to a generation ago.
Some experts warn that this leaves the welfare system vulnerable to waste, fraud and abuse, some of which is “designated”.
“There’s a recognition that we need a social security net, but whether that net actually works is another matter,” Rep. Josh Kail (R-Beaver) said Wednesday at a House Republican Policy Committee hearing in Williamsport. “It’s something that we have to be willing to test and trust. At the end of the day, this isn’t money that we play around with or hand out, it’s taxpayer money and we need to make sure it’s spent properly.”
That responsibility has grown: In 2000, 760,000 Pennsylvania residents received food stamps; today, about 2 million receive them. So has Medicaid growth: The state spent $10.7 billion to provide Medicaid benefits to 1.3 million residents in 2000; today it spends about $47 billion to provide Medicaid benefits to 3.3 million residents.
Welfare expansion has outpaced population growth — Pennsylvania’s population has grown by just 700,000 since 2000 — but it still makes up the bulk of the state budget, disbursed through the Department of Human Services.
“Humanitarian aid accounts for 42 percent of our state budget, or $19.1 billion,” said Republican Rep. Joe Hamm of Mount Toursville. “Humanitarian aid is up about 5.2 percent from last year, or about $1 billion a year. The federal government matches that figure at a nearly 50/50 rate, and we receive about $19 billion in federal funding for these programs. “If we had accountability and integrity in our welfare programs, we’d get more money to those who really need it.”
While humanitarian aid makes up a significant portion of state budgets, Pennsylvania stands out: It has the highest Medicaid share of the state budget in the nation, according to an analysis by the Government Accountability Foundation.
“You can imagine the impact this has — Medicaid eats more and more into the budget every year, tying up funding for public safety, schools, roads and people who are really in need,” said Sam Adolfsen, policy director for FGA.
And he argued that nearly half of Pennsylvania’s Medicaid dependents are able-bodied adults.
“When able-bodied people take over the program, it leaves nothing for those who are truly in need, which is why we fight fraud,” Adolfsen said. “As welfare expands, labor force participation rates fall and people are left out of work.”
Adelson called it a “planned fraud” that allowed recipients to enroll in Medicaid programs before states verified their eligibility, while 14,000 people with intellectual and physical disabilities remain on waiting lists for assistance.
“So that safety net is taken away,” he said. “If we’re going to stop fraud and save money, it’s to protect these people and protect taxpayers.”
Roy Leonardson, FGA’s director of state government relations, told lawmakers to look to states that have enacted reforms, including Georgia, Tennessee, Kansas, Florida and North Carolina.
“These reforms work, and it’s not just you,” he said. “This isn’t just a state, it’s your competitors… Having a strong workforce makes your job a lot easier when you’re trying to attract new businesses.”
He argued that other reforms, such as streamlining Pennsylvania’s administrative code, would spur economic growth and strengthen the safety net. Legislative powers are also needed.
“Take back control. You are the only person the residents of your district have to oversee and hold government accountable,” Leonardson said. “Maintaining the integrity of benefits starts with holding Congress accountable for their integrity. If you’re not accountable, no one else will be.”
Adelson reiterated the importance of holding lawmakers accountable, urging them to not make policy without the General Assembly’s oversight.
“The most compassionate and gracious response would be to offer them a stipend, but in return they have to attend vocational training on Monday,” Adolfsen said. “There are so many opportunities out there. For me, helping them get on track is the first step.”
Lawmakers agreed that the goal of government assistance programs should be to prevent able-bodied people from becoming permanently dependent on them.
“We must ensure that Pennsylvanians are in the best position to achieve economic independence and not be dependent on government,” Hamm said.
