House Republicans Call for Audit and Hearings on Out-of-State Welfare Spending
More than $10 million EBT transactions take place in another state
Click here for a U.S. map of out-of-state welfare spending
SAINT PAUL – (August 7, 2008) – Citing millions of state taxpayer dollars being spent in other states through the use of Electronic Benefit Transfer (EBT) cards, Minnesota House Republicans today called for legislative hearings and an audit of the state’s EBT system.
House Republican Leader Marty Seifert said exploding out-of-state costs are costing taxpayers millions of dollars.
The EBT card provides cash and food support benefits to Minnesotans. In 2007, 12.9 million transactions totaling $496,330,741.25 were made. Of those transactions, 309,717 took place in states other than Minnesota for a total of $10,226,758.50.
“Minnesota welfare benefits should be provided to Minnesota families in need. When the state of Minnesota is facing a major budget crisis, we cannot turn a blind eye to the potential misuse of taxpayer dollars,” Seifert said. “The average Minnesotans deserves to know why $1.3 million is being spent in Illinois and 126 transactions are taking place in Hawaii. Hundreds of thousands of transactions are taking place in the other 49 states and that's a huge concern.”
According to the Minnesota Department of Human Services Web site, misuse of the Minnesota EBT card is unlawful. Defrauding the system or selling an EBT card or pin number to others could result in criminal charges and loss of benefits. While it is not illegal to use EBT cards in other states, House Republicans question the financial accountability of those transactions.
“There is a financial responsibility on behalf of the State of Minnesota to ensure that taxpayer dollars are not being abused,” said Representative Laura Brod. “The welfare system is growing exponentially and receiving a greater share of the state’s budget. We want to take care of families in need but also ensure that no one is abusing the system for their own financial gain at the expense of Minnesota families struggling to pay their own bills.
House Republicans are calling for legislative hearings and an audit of the EBT system to put concerns of potential fraud and misuse of state taxpayer dollars to rest.
“An efficient government is an effective government,” Seifert said. “Government must be held accountable for fiscal responsibility, particularly in cases of fraud or misuse of taxpayer dollars.”
