Latest poverty figures show too many Rhode Islanders still struggle to make ends meet


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image002Over one hundred forty thousand (141,035) Rhode Islanders lived in poverty in 2015, according to new data released today from the Census Bureau. The drop in the rate to 13.9% in 2015 from 14.1% in 2014 is not statistically significant. The poverty level for a family of four is approximately $24,000.

The one in seven Rhode Islanders with income below the poverty level do not have enough to meet basic needs. Child Care Assistance, SNAP and health insurance coverage help working families make ends meet when earnings are not enough.  Rhode Islanders unable to work on a temporary or permanent basis turn to cash assistance and other programs to protect themselves and their children. The new on-line integrated eligibility system can facilitate enrollment in these vital programs. But the new technology cannot replace the need for staff.   “In the two years that the HealthSource RI on-line system has been operative, most new applicants have required help either over the phone or in-person to complete their application.  Access to computers and knowing how to navigate an on-line application have also been issues.” said Rachel Flum, Executive Director of the Institute. “With more programs accessible through the system, the need for one-on-one assistance is even greater. The state must ensure that there are sufficient staff to help people access these critical benefits.”

The Ocean State had the highest rate of its residents living in poverty among the New England state and ranked 26th among all states.

Today’s data also show that Rhode Island’s communities of color were much more likely to struggle to meet basic needs with nearly one in three Latinos, close to one in four African Americans and more than one in six Asians living in poverty.  While the one-year census data does not permit sub-group analysis, multi-year analysis shows that South East Asians are not as economically secure as the Asian population as a whole (See analysis of five-year median wage data in “State of Working Rhode Island, 2015: Workers of Color”).

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“It is unacceptable that so many Rhode Islanders are living in poverty and shocking that Black, Latino, and Asian households face such deeper economic distress compared to the white majority. To truly achieve economic equity  now and into the future, our state must be intentional about targeted policies to address racial disparities in wages, income, and total wealth,” said Jenn Steinfeld, facilitator for the Racial Justice Coalition, a new collaborative effort to address shared barriers faced by all non-white Rhode Islanders.

The Census Bureau released extensive information on the economic and health insurance status of Americans. The Economic Progress Institute website provides additional analysis of the new data for Rhode Island, including the more positive news that median income increased in 2015 to $58,073 from $54,959 in 2014.

Providence DHS also experiencing problems


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From the DHS website
From the DHS website

The letter Heather received a week before her appointment with the Department of Human Services (DHS) warned that not showing up for her scheduled appointment could seriously delay approval of her benefits. Having been recently laid off and in search of work, Heather made sure that she was not only a half hour early, but that her paperwork was in order.

Arriving at the DHS offices in Providence on Elmwood Avenue, she got into the line for those with appointments. The other line, for those without appointments, was longer and moved more slowly. Both lines stretched out of the waiting room.

Conditions in the waiting room, Heather told me, were “miserable.”

From the DHS website
From the DHS website

“People were standing in lines for hours,” said Heather. “A lot of people were turned away. A lot of them were single mothers. It was hot, and there was not a lot of room to sit. Children were running around, crying and screaming.” She said employees appeared to be overwhelmed and frustrated.

Optimally, DHS provides people in need with access to many services such as Medicaid, SNAP benefits, Rhode Island Works (RIW), Child Care Assistance Program (CCAP), LTSS, General Public Assistance (GPA) and access to various energy assistance programs like HEAP, WAP and HSR.

The delays, Heather was told, were because of the new computer system the DHS was using to approve benefits. The new system was supposed to make things more efficient. Instead, workers at the office were facing too many cases and a new system being rolled out without adequate training.

At a press conference on Thursday, DHS director Melba Depeña Affigne said that changes in staffing and the conversion to the new computer system would have “no impact on clients.” Michael DiBiase, director of the RI Department of Administration called the issues that Heather and others have described as “unfortunate.”

After four hours, Heather got her EBT card and was able to leave the DHS offices by 4:45pm. The waiting room was no less full, most of those waiting would have to return the next day to continue the process.

The new computer system, which has no official name, was supposed to be online in July, and is now slated to be fully operational by mid September. The system is supposed to reduce the amount of time prospective clients spend with social workers and has been billed as an “incredible tool for our workforce” that will “enhance customer service.”

Heather disagrees. The system, she says, is “designed to make you feel like shit about yourself.”

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New computer system at DHS hurts clients and social workers


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Melba Depeña Affigne
Melba Depeña Affigne

Melba Depeña Affigne, director of the RI Department of Human Services (DHS), was “surprised to hear [that clients] did not get service” at the Woonsocket DHS offices. The clients in question were referred from the Woonsocket offices to the DHS offices in Pawtucket, a four hour round trip by bus.

Michael DiBiase, director of the RI Department of Administration said, regarding the problems at the Woonsocket branch of the DHS that the “break in service was unfortunate” and will last “hopefully less than a month.”

DiBiase and Affigne were holding a press conference to explain the layoff of 70 DHS employees, mostly social workers, as part a major reorganization of the DHS and the launching of a new computerized eligibility system that is projected to save taxpayers millions.

Michael DiBiase
Michael DiBiase

The laid off social workers, said DiBiase, will have a chance to apply for one of the more than fifty job openings at DCYF (Department of Children, Youth and Families). The layoffs are required, said Affigne, because of a “new staffing model” that will allow DHS to make significant cuts. The new model is “task based” and will not require supervisors trained in social work to manage by “case load.”

I asked Sue Pearlmutter, dean of the Rhode Island College School of Social Work if this means that the DHS is moving away from social workers advocating on behalf of clients and towards data entry technicians assisting clients using the computers.

“That has been my impression,” said Pearlmutter. The DHS is moving towards “a very different kind of process. Social workers engage with the client and work with the client.” The application process DHS is instituting makes “people take responsibility for their application at a kiosk or in a library.”

Often, these are “people in crisis” at a time when “completing an application is a daunting process.” Some adults and young adults, says Pearlmutter, “may find the process overwhelming. Removing a level of staff may cause more problems for people facing crisis.”

2016-08-25 DHS layoffs 003As for the staff DHS is cutting, saying that there are openings at DCYF is disingenuous. Many of the staff losing their positions at DHS started at DCYF, said Pearlmutter. They took jobs at DHS “because the work at DCYF is so crisis oriented. It’s difficult and emotional work that many found they couldn’t do any more.”

Talking about the jobs at DCYF as being like the work at DHS “shows no understanding of the kind of work social work is,” says Pearlmutter.

The new computer system, which has no official name, it’s just the “New Integrated Eligibility System,” said Affigne, was supposed to be online in July, and is now slated to be operational in mid September. The system will reduce the amount of time prospective clients will spend with social workers. This is “by far the largest technology project that has ever been undertaken by the State of Rhode Island,” said DiBiase.

The new computer system, said Affigne, is an “incredible tool for our workforce” that will “enhance customer service.”

Lucie Burdick, president of Local 580 of the Service Employees International Union (SEIU), disagrees. She told RI Future that “this extremely expensive computer system, if it even works correctly someday, will never provide the quality of service a trained, educated, experienced human being provides. The computer pilot program is failing miserably at this point and costs are rising rapidly. It could have been done better and cheaper. The displacement of staff and the cost of human suffering that it has exacted on the population we serve is unconscionable.

“This fiasco is the 38 Studios of human services. The taxpayers and advocates for the poor should be outraged.”

DHS provides people in need with access to many services such as Medicaid, SNAP benefits, Rhode Island Works (RIW), Child Care Assistance Program (CCAP), LTSS, General Public Assistance (GPA) and access to various energy assistance programs like HEAP, WAP and HSR. Affigne said that about one in five Rhode Islanders use services offered at the DHS, and that they maintain six field offices, like the one in Woonsocket.

“What will be the impact on clients?” I asked.

Affigne replied, “There will be no impact on clients.”

Yet existing clients did not start receiving notifications of reduced services in Woonsocket until August 23, and the Woonsocket DHS began reduced services on the 19th. That’s two or thee days of people arriving at the Woonsocket offices and learning that they were in for a four hour bus ride to Pawtucket from a sign taped to the door.

As Bob Plain and I tried to ask questions to get to the heart of the issue of the actual impact that this transition will have on people trying to access needed state services, Kristin Gourlay, health care reporter for RIPR cut in.

“Presumably,” said Gourlay, “in September, when the system goes live, people won’t have to go to a field office, they can go to- if the have a computer at home they can use that, they could go to a public library and use a computer there or another social service agency…”

“Correct,” said Affigne.

This allowed DiBiase and Affigne to shrug off concerns about social workers and clients as mere “bumps” along the way towards an improved, (read: cheaper) system. Yet, at a time when poverty and income inequality are at all time highs, and the economy of Rhode Island is barely improving, “bumps” in the lives of the one in five Rhode Islanders applying for needed assistance can be catastrophic.

Here’s the video of RIFuture’s questions:

Here’s the video of the full press conference:

 

Layoffs at DHS have already affected services in Woonsocket


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Woonsocket DHS 005People in need of social services are being turn away from the Woonsocket branch of the RI Department of Human Services (DHS) as the offices are in the midst of a downsizing and relocation.

On Tuesday some clients went to the DHS offices in Woonsocket and were told that they could not access the services they needed. They were referred to the Pawtucket offices, requiring a four hour bus ride, two hours each way. DHS employees in Woonsocket said their branch right now can only deliver “limited services.” I was told that all questions regarding the move and reduced services needed to be referred to DHS director Melba Depeña Affigne.

The reason for the change in service seems to be related to 70 layoffs at DHS that, according to a news release, is the result of a new software system coming in September.

“Moving from a software system designed more than 30 years ago to a modern, digital system requires different staffing needs,” said Depeña Affigne in a news release from the Department of Administration sent today. There will be a 3pm press conference explaining the layoffs in detail.

“The new eligibility and enrollment software system will make it easier and more convenient for Rhode Islanders to access those vital services,” Depeña Affigne said in the press release.

Woonsocket DHS 002
Notice on Woonsocket DHS door

DHS provides vital community and family assistance by way of food and cash assistance, child care assistance and Medicaid. DHS manages SNAP benefits,  Rhode Island Works (RIW), Child Care Assistance Program (CCAP), LTSS, General Public Assistance (GPA) and provides access to various energy assistance programs like HEAP, WAP and HSR.

Woonsocket DHS 003The clients DHS serve are among the most vulnerable in the state, who often have difficulty with transportation and access to the internet. Closing offices, downsizing staff and limiting services, even if only for a month, could have catastrophic effects on families.

In a letter to SNAP Advisory Committee members, SNAP Administrator Iwona Ramian wrote that the lease for the current offices expires on August 31, and the effective date for the new offices is September 1, with transition between offices beginning Monday, August 22. Notification of the move was mailed to clients on Monday, meaning many people did not know about the gap in services.

Woonsocket DHS 004
DHS website

Though Ramian in her letter says that “no gap in services is anticipated” the DHS website says, “The Woonsocket office is providing limited services” and refers clients to other locations.

Further calling Woonsocket DHS services into question is Ramian’s assertion that staffing levels at the Woonsocket office will be reduced from 36 to 14. The 22 employees who will no longer be in Woonsocket are being relocated to Providence.

A drop to 14 staff members is a big reduction. The implementation of a new on-line system for determining eligibility and needs was supposed to be in place before the change in location and reduction in staff, but the new system is experiencing delays.

Ramian notes that “the [new] office space will be shared with a comprehensive multi-service, non-profit, health and human services agency, giving customers a one-stop service location. The office telephone and facsimile numbers will stay the same. She’s referring to Community Care Alliance, a multi-service not-for-profit health and human services provider consisting of the original community mental health center serving the 6-town region, a school, the Woonsocket Family Shelter, the Northern RI Family Visitation Center (for DCYF-involved families), a youth success program, day treatment, partial hospital and acute stabilization for substance use and co-occurring behavioral health disorders and more.

Calls to the DHS offices have not been returned.

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Food on the Move brings healthy produce to underserved RI communities


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2015-09-11 Food on the Move 006 Food on the Move is a new program that brings fresh produce into underserved communities and doubles the value of SNAP benefits for fresh produce. Right now this is the only mobile produce program in the country.

The federal government is watching with “keen interest,” says Amy Nunn. She and Gemma Gorham are program directors of this new way to bring good food to poor people.

2015-09-11 Food on the Move 002Senator Jack Reed, who secured the initial $100,000 investment in the program, said it is based on very sophisticated academic research showing that bringing fresh produce into communities increases healthy eating.

Reed too hopes Food on the Move, “will be a model for programs across the country.”

And Rhode Island is the perfect testing ground. “Fifteen percent of Rhode islanders experience food insecurity,” said Nunn. “The highest rate in New England.”

2015-09-11 Food on the Move 013 Nicole Alexander Scott
Nicole Alexander-Scott

“How long someone lives should not depend on the zip code they come from” said Nicole Alexander-Scott, executive director of Rhode Island Department of Health. She said 85 percent of those making under $50,000 a year do not eat the recommended servings of fruits and vegetables per day. This program is one way “we are going to [impact] social and environmental determinants of health.”

Towards the end of the presentation Dr. Nunn pointed out that many people only get a small amount of money in their SNAP benefits, and that Food on the Move might not reach them until the second or third week of the month. She hopes that many people will be able to hold onto some of their SNAP money until they can reach a Food on the Move location and double the impact of the benefits.

2015-09-11 Food on the Move 015 Amy Nunn
Amy Nunn

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2015-09-11 Food on the Move 007

2015-09-11 Food on the Move 005

2015-09-11 Food on the Move 003

2015-09-11 Food on the Move 002

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How Chafee just saved our economy from a $124 million hit


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chafee sos1On Monday, Lincoln Chafee did something incredibly important for our state’s economy.  Following Connecticut, New York, and Pennsylvania, he stopped severe cuts to the Supplemental Nutrition Assistance Program (SNAP), a program that provides food assistance to families at risk for hunger.  Passed in the most recent farm bill, these cuts were vigorously opposed by each member of our national delegation.

By increasing funding to the Low Income Heating Assistance Program (LIHEAP) by $1.4 million, Chafee has guaranteed the state an extra $69 million in SNAP funds.  According to the Department of Agriculture, the economic multiplier for SNAP is 1.79, so the $69 million will translate into a projected $124 million of GDP.  That would be a huge hit to the economy. Stopping it is very big news.

We face a hunger crisis in America.  Millions of families struggle to put food on the table.  Because of what Lincoln Chafee did, not only will our economy avoid a big hit, fewer Rhode Islanders will go to bed hungry.

Food stamps or firearms: which is worse in the hands of a drug dealer?


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media-bias-meterEarlier this week, the Providence Journal reported on the arrests of two suspected drug dealers.

In the first paragraph of that story – typically known as the “lede” among journalists – we learn that one of the suspects “has been collecting government benefits although he allegedly had $29,130 in cash stashed in his apartment and cocaine with a street value of about $140,000.”

In the third paragraph, we get more detail about this:

[Detective] Sauro said detectives found out that Mendez receives benefits under the Supplemental Nutritional Assistance Program for low-income people, or SNAP, paid through an Electronic Benefit Transfer debit card – formerly known as food stamps. They notified the Rhode Island Department of Human Services so the DHS could review Mendez’s eligibility for SNAP.

Then, in the tenth paragraph, the reader learns what detectives found when they arrested the other suspect:

Detectives arrested Mercado in the driveway of his house and said they took a bag of heroin from his front pants pocket. Inside, they said they found 22 more bags of heroin, a Sig Sauer .223 “assault rifle,” a Glock handgun, 152 rounds of ammunition, $9,660 cash and drug paraphernalia.

To review, in the first and third paragraphs we learn that police arrested a suspected drug dealer in possession of food stamps. Not until the tenth paragraph do we learn that police arrested a suspected drug dealer in possession of an assault rifle and a handgun.

I’m not quite sure if this is bad/biased journalism or if the era of austerity/government shrinking has wrought a terrible moral crisis upon the American/RI citizenry but I’m pretty sure it’s one or the other.

Whitehouse, Reed vote no on food stamp cuts in farm bill


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delegationSenators Sheldon Whitehouse and Jack Reed were two of the nine Democrats who voted no on the latest version of the farm bill, which slashes food stamps by $8 billion over the next 10 years.  When the original Senate farm bill (which would have cut nutrition programs by $4 billion) passed, our Senators were the only Democrats voting no.

In the final bill, they picked up no votes from seven other Democrats, including the Senators from our neighboring states–Elizabeth Warren (D-MA), Ed Markey (D-MA), Chris Murphy (D-CT), and Richard Blumenthal (D-CT).  Because a surprising number of progressives, including Jeff Merkley (D-Oregon) and Bernie Sanders (I-VT), voted with leadership on this one, our senators’ principled votes are especially meaningful.

In the house, both of our Congressmen voted no, too.  David Cicilline took to the floor to deliver one of his best speeches yet, deploring the cruelty of cutting anti-hunger programs.

Although we lost this battle, because our delegation put up such a hard fight, they almost certainly kept the cuts from being even worse than they are.  They deserve our gratitude today.

 

RIF Radio: Injured owl, ‘Actually Andy,’ minimum wage and more

waterfallMonday Dec 2, 2013
North Kingstown, RI – Good morning, Ocean State. This is Bob Plain, editor and publisher of the RI Future blog podcasting to you from The Hideaway on the banks of the Mattatuxet River behind the Shady Lea Mill in North Kingstown, Rhode Island.

It’s Monday, December 2nd … the first work day of the least productive month of the year. But don’t worry, economy … while fewer people are producing goods and services more people are consuming them. December also almost always has the highest consumer spending of the year.

And speaking of the economy…

Politifact uses some political oxygen to debunk a pretty archane untruth about the minimum wage debate … put forth into the marketplace of ideas by a Facebook meme. It was something about how many times Congress increased its own salary in relation to how many times the minimum wage was raised … nothing too germane to either the economics or the morality of minimum wage politics, but it is an interesting reminder of where information comes from these days … the answer: everywhere and anywhere.

Here are some additional minimum wage claims that Gene Emery should fact check: only a third of minimum wage workers are teenagers, and three quarters of Americans, including a majority of Republicans, support raising the minimum wage. And here’s a really fun fact: had it kept pace with the earnings increases of the one percent in America, the minimum wage would be about $50,000 a year. Instead, it hasn’t even kept pace with inflation, and hasn’t been enough to escape poverty since 1982 – that’s more than 30 years of enforcing slave wages from one of the richest people in human history. More on this phenomenon from Oswald Krell on RI Future.

Dan Schiff, the CEO of the Rhode Island Foodbank, told WPRI Newsmakers this weekend that the $20 million cut to SNAP benefits for Rhode Islanders will not only hurt the poor, but it will also hurt the grocers, super markets and other small businesses where poor people spend their food stamps. One in five Rhode Islanders use food stamps, and he dispelled the conservative dog whistle that waste and fraud is an issue.

Tom Sgouros has a great post on the accounting scare tactics that come in to play when the media calculates future government expenses. In this case, Tom’s talking about the next evil Republicans and conservative Dems will be railing against: other post employment benefit costs, known Draconianly as OPEBs.

Rhode Island’s most famous – and, in my opinion, most beautiful -winter residents are back. Snowy white owls have been seen at Sachuest Point in Newport, Beavertail in Jamestown and a young one was found with a broken wing at Quonset Airport here in North Kingstown yesterday. You can see pictures of the injured owl on the Wildlife Rehabilitators of Rhode Island Facebook page.

Today is Day 2 of Karen Ziner’s amazing series in the Providence Journal about transgender teenager Andy Noel. It’s a story about bravery and individualism … and it’s a sign of the times, that the paper of record would dedicate so much ink to this topic, but also that it had to shut off the online comments on account of how outrageous they became … we still have a ways to go, but people like Andy Noel are helping us get there.

Now back to my favorite news story so far of the Christmas season: is the Pope a progressive? Justin Katz and I debated the issue on NBC 10 Wingmen last week and he follows that up with an explanation of how he and the head of his church can be at such economic odds, writing, “A progressive Franciscan isn’t exactly a contradiction in terms.”

Not at all. In fact, we have tons in common. Read Steve Ahlquist’s post about what it means to be a progressive that he published just days before the Pope wrote about what it means to be a Catholic and you will see how similar these two groups tend to think. Conversely, I’d argue that the Chicago School is sinful. Katz writes that he can’t make a coherent rebuttal to the Pope’s game-changer. That’s because there isn’t one.

No need to overreact to SNAP fraud indictments


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SNAP-420x215RI Future’s editor Bob Plain called out WPRI, specifically for the lede in the story by Tim White and Dan McGowan covering yesterday’s announcement of indictments of nine people for Supplemental Nutrition Assistance Program (SNAP) fraud. At the conference announcing the indictments, U.S. Attorney Peter Neronha said “I think [SNAP fraud] is a significant problem in Rhode Island.”

The argument here hinges on what we consider “significant.” If you look at the issuance of SNAP funds to Rhode Island in the last two years (which is when this fraud occurred) Rhode Island was given about $275 million in 2011, and $290 million in 2012 (we don’t 2013’s data yet). Assuming the 5 stores that defrauded $3 million were stealing at a consistent rate, that’s only about half a percentage of SNAP issuance lost to fraud. The vast majority of the program is operated honestly; virtually all of it. And that’s a significant thing to think about, considering that it works based on the honesty of recipients and retailers alike.

Now it’s an unfortunate reality that virtually all budgets operate with some level of waste and fraud. Whether it’s printing off copies of your March Madness bracket at work or it’s defrauding the Department of Defense, fraud happens.

It’s worth comparing the Department of Defense fraud to the SNAP fraud, merely because our responses are vastly different. For instance, a 2011 report prepared by the Department of Defense for Senator Bernie Sanders (I-VT), discovered that the DoD had issued over $1.1 trillion during the preceding 10 years to companies that had defrauded the government; including continuing to issue millions to companies that had been convicted or found liable of fraud. Some of these are the biggest names in defense contracting; Northrup Grumman, Boeing, Lockheed Martin, etc. Those companies will continue to be the recipients of government largesse, regardless of their track records, because they form a vital part of our defense network. The DoD spent $1.811 trillion on procurement and research, development, testing, and evaluation over the same period; but that’s merely the best number I can find. Suffice it to say, a history of fraud does not disqualify one from receiving DoD money.

In contrast, the U.S. Department of Agriculture’s Food and Nutrition Service (USDA-FNS) comes down much harder on those vendors who commit fraud. These nine people aren’t going to get to continue defrauding the government. Their businesses aren’t either. Thanks to the Electronic Benefit Transfer (EBT) card, it’s much easier to track, as well. The bottom line is that while $3 million is a grabbing headline, yesterday’s indictment is proof of a system doing what it’s designed to do. For more evidence, in 2011, the FNS conducted 519 investigations in Rhode Island. Of those 519, only 134 were “positive” (demonstrating problems with fraud). Out of the 134 positive investigations, 125 were conducted before anyone received SNAP benefits.

Now, for fraud freaks and welfare witch hunters, this isn’t enough. Even if this had been $3000 or $300, they’d insinuate the majority of SNAP recipients deserve to be treated poorly, and then demand reducing benefits and placing stringent regulations on what is already a strongly protected program (and in my opinion, the government’s best program).

While I think Neronha is wrong when he suggests it’s a “significant problem” he is right about how we should approach this, saying, “You have to be careful here not to paint with too broad a brush because there are many people who use this program responsibly.” Again, virtually all are. The fact that in such an important program you pick a few people of low character is neither surprising, nor cause for alarm. They’re getting what they deserve now. This fraud can’t exist without retailers being complicit in it. As Neronha says, “The reason we focus on the retailers is they’re in a position to stop this conduct in its tracks. If a recipient comes and says ‘I want cash’ they don’t have to do it. They say no and recipient doesn’t get the cash and the stamps are used properly.”

This is a federal program, and the federal government is dealing with it. The wrong response would be to repeat what happened after the release of the Block Report. Attempting to put wrong-headed (and illegal) regulations on SNAP benefits and EBT cards; as well as wasting state dollars to chase after federal fraud. Those continue to be wrong ways to deal with this, but ways that are favored by politicians.

It’s easy to see why politicians gravitate towards “ending” waste and fraud as a political promise. Because it’s fraud, you can always assert there’s more of it. And waste is just money that wasn’t needed. It involves no extra raising of revenue nor cutting of programs. You’re only preventing money from going to bad people or being misspent. Who’s against that? Absolutely no one. It’s a completely popular policy, because it doesn’t require hard choices. It’s a great policy for the politically lazy. And if you want to look serious, you can always just cut the amount of money you expect to be saving from fraud and waste, and let the various effected government departments make the tough choices; consequences be damned.

The sober reality is that our problems continue to require serious action and serious thought. What’s really significant about SNAP in Rhode Island is its growth since 2008; up from about $108 million in 2008 (the worst of the recession) to nearly $290 million in 2012. SNAP is a great indicator of economic issues, and what it’s shown us over the last five years is that the need has continually gotten worse. If we were transitioning out of recession, we’d expect to see that number drop, as income replaced SNAP as a source of food money. Policies designed to limit SNAP spending in Rhode Island are damaging economically; all that SNAP money gets spent. And considering that Rhode Island’s gross state product was around $50 billion in 2010, the SNAP money issued to us is a not insignificant part of our economy under the current conditions.

The reaction to this indictment should not be a trading of recriminations nor a vilifying of SNAP recipients. WPRI focuses on things like this because that’s what they’ve hired Tim White to do, to cover government waste and abuse. That’s his beat, as he’ll be the first to point out. But just because this is a case of fraud, doesn’t mean we have to focus on solutions to it in such a narrow frame. We’re free to consider the underlying issues, and how to address those issues. And because the state continues to have a hard time addressing those issues, we’re going to continue to need SNAP. And that will mean allowing the Feds to deal with the issues as they crop up, and complying with what they need from us. Until the state demonstrates that it’s capable of addressing the problems that SNAP works to fix.

How significant is food stamp fraud in RI?


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SNAP-420x215WPRI wants you to believe that, “Food stamp fraud is a ‘significant problem’ in Rhode Island.”

“That,” the TV news station reports, “was the message U.S. Attorney Peter Neronha sent Thursday when he announced that nine people are facing criminal charges for allegedly defrauding the federally funded Supplemental Nutrition Assistance Program out of more than $3 million.”

As a point of fact, that wasn’t the message of the U.S. Attorney yesterday. The actual message was that nine people had scammed the system. Here’s how the Providence Journal began its story on the same exact event:

“A two-year federal investigation into food-stamp fraud has resulted in nine merchants involved with five convenience stores in the city being charged in connection with the theft of more than $3 million from the program designed to provide food to many of the state’s neediest residents.”

Less sensationalized, but more accurate.

Food stamp fraud is far more of a political tool of conservatives to smear social services than it is a legitimate social problem. Here in Rhode Island, a recent analysis by right-leaning gubernatorial candidate Ken Block indicated that the actual rate of fraud was less than the national average.

As , “Providence Rep. Maria Cimini, who coordinates the SNAP outreach program at URI, said the national fraud rate for the program known as food stamps is between 1 and 3 percent. Block’s report indicates the fraud rate in Rhode Island is ‘one half of 1 percent,’ she said.”

That’s far below the national average. For more on how the right wing overstates food stamp fraud, Chris Hayes of MSNBC filed this recent report.

Visit NBCNews.com for breaking news, world news, and news about the economy

Here’s how the “food stamp fraud” fraud works:

A news organization finds an outlier abusing the system. The most popular example this summer was when FOX News interviewed this southern California surfer that uses food stamps. The FOX segment indicated that the man drives a Cadillac SUV and surfs everyday, but the San Diego Union Tribune learned that neither was true.

Then, you simply met the right wing outrage machine take over. I’d be real surprised if John DePetro doesn’t think food stamp fraud is most pressing issue in Rhode Island this morning. On the web, Ken Block, pounced on the opportunity yesterday, posting to his Facebook page, “If those who defraud spending programs get nothing more than a slap on the wrist, there is no deterrent value and the frauds will not only continue – but they will grow.” And, “This sort of vigilance is required for every spending program.”

Here’s a handy primer for dealing with those who traffic in the food stamp fraud talking point.

Fraud, of any kind, is not good. But neither is being penny wise and pound foolish. A better strategy for Rhode Island would be to identify how many people are eligible for the SNAP program but don’t utilize it.

Rhode Island’s Economy: A Moral Failure


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The most important news story Rhode Islanders can read this week is the front page of today’s Providence Journal. “The Face of Food Stamps Nearly 1 out of 5 in R.I. Depends on the Program,” reads the headline. It’s a sort of follow-up to the Washington Post’s recent stunning Sunday front-page examination of Woonsocket, where one in three people depend on the SNAP program.

What these stories depict – in human terms – is that there is a huge chunk of our state that isn’t making it on their own. Whether you believe this is because our government and our economy favor the rich over the poor or the poor over the rich is really inconsequential. I think we can all agree this is really bad. And not just for our economy.

Yesterday afternoon I went to a press event at the State House calling attention to the rising rate of homelessness in Rhode Island, another critical issue for Rhode Island’s economic and social well being and George Nee made a point that I don’t think gets nearly enough attention here in Rhode Island.

Where The SNAP Cards Are


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The five cities with the biggest budget problems also have the highest percent of residents who use SNAP benefits.  In other words, there’s a correlation between the communities that can’t pay their bills and residents who can’t afford to feed themselves.

According to the Department of Human Services, 181,567 Rhode Islanders – 17 percent of state – use SNAP cards. But 59 percent of all SNAP users lives in one of the post-industrial cities that have experienced serious budget problems in recent years.

  1. Central Falls; 40.3 percent
  2. Woonsocket: 33.8 percent
  3. Providence: 33.8 percent
  4. Pawtucket: 27.9 percent
  5. West Warwick: 25.8 percent.

The communities with the lowest percentage of residents who use SNAP cards probably won’t surprise you either:

  1. Barrington: 2.7 percent
  2. Block Island: 3 percent
  3. Jamestown: 3.5 percent
  4. Little Compton: 4.3 percent
  5. Smithfield: 5 percent

Here’s the other 29 cities and towns:

And here’s the entire list:

  1. CENTRAL FALLS    40.3%
  2. WOONSOCKET    33.8%
  3. PROVIDENCE    33.8%
  4. PAWTUCKET    27.9%
  5. WEST WARWICK    25.8%
  6. NEWPORT    15.4%
  7. EAST PROVIDENCE 14.8%
  8. CRANSTON 14.5%
  9. WARREN    14.7%
  10. NORTH PROVIDENCE    14.2%
  11. JOHNSTON     13.4%
  12. WARWICK    12%
  13. HOPKINTON    10.7%
  14. BURRILLVILLE    10.6%
  15. COVENTRY    10.5%
  16. WESTERLY    10.1%
  17. LINCOLN    9.6%
  18. CHARLESTOWN    9.2%
  19. NORTH SMITHFIELD    8.9%
  20. NORTH KINGSTOWN    8.8%
  21. MIDDLETOWN    8.6%
  22. TIVERTON    8.3%
  23. CUMBERLAND    8.1%
  24. EXETER    7.6%
  25. BRISTOL    7.3%
  26. FOSTER    7.1%
  27. RICHMOND    6.9%
  28. SOUTH KINGSTOWN    6.3%
  29. NARRAGANSETT    6.3%
  30. GLOCESTER    5.6%
  31. SCITUATE    5.5%
  32. EAST GREENWICH    5.5%
  33. PORTSMOUTH    5.2%
  34. WEST GREENWICH    5.1%
  35. SMITHFIELD     5%
  36. LITTLE COMPTON    4.3%
  37. JAMESTOWN    3.5%
  38. BLOCK ISLAND    3%
  39. BARRINGTON    2.7%

Fox “News” And The War On Woonsocket’s Poor

If you didn’t know that local conservatives were going to take to Fox “News” to exploit Ken Block’s food stamp fraud report, I would like to bet you that the sun will rise tomorrow morning. Then, maybe we can go double or nothing on whether or not the days will get longer until late June, when they will then get shorter for about the next six months.

The Providence Journal this morning reprised Dave Fisher’s post from Friday about Woonsocket Mayor Leo Fontaine going on Fox “News” and blaming the city’s economic woes on the fact that one in three residents needs SNAP benefits.

The ProJo picked up on the similar themes as did Fisher’s post*: Fontaine inaccurately claimed that Block’s report uncovered “massive fraud” (or, me and Fontaine have an entirely different idea of what the word massive means) and that even the Fox anchor was surprised that Fontaine was blaming the poor for the city’s problems.

Unfortunately Fontaine wasn’t the only conservative using Block’s investigation to bash our poor on national television.

Rep. Doreen Costa, the voice of the tea party in the General Assembly, was on a Fox segment that included not-too subliminal messages of “‘Rhode’ to Economic Disaster” and “Who is ruining our economy?”

Costa, whose major legislative accomplishment is a failed bill that would mandate drug tests for welfare recipients, is no stranger to this form poor-bashing-as-political-shell-game. Here’s how it works:

Fox: “Why is Rhode Island suffering so much?”

Costa: “Well, I think Rhode Island is suffering so much because we don’t have any jobs here and because no business friendly legislation has been put in up at the State House…”

Fox: “Do people at least recognize that this is a problem or are you the lone ranger in this?”

Costa: “I don’t think people up at the State House even think this is an issue, they just want to keep giving out and giving out and giving out…”

Fox: “If you are trying to help these people, do you think they are trying to help themselves?

Costa: “That’s a good question. We just had a major report…”

There’s a lot in here that is either blatantly wrong or half-true to the point of being misinformation.

  • Rhode Island is suffering from a lack of jobs, but it’s not the kind of jobs that the myriad of business-friendly legislation at the State House addresses. In other words, putting the DEM under an economy czar isn’t going to get anyone off food stamps in Woonsocket, probably few – if any – Woonsocket residents lost their jobs when 38 Studios failed and I’d reckon that doing away with the sales tax would do far more damage than good, in the short and long term
  • So I get that very few people in politics care that the mayor of Woonsocket and the state Rep. from North Kingstown are spreading lies and half-truths about Rhode Islanders living in poverty on Fox, but what do Costa’s legislative colleagues think of her spreading lies about them. The idea that no one at the State House thinks about these issues is not in any way, shape or form true.
  • I like Doreen plenty but the idea that she is “trying to help these people” on SNAP benefits, as the Fox reporter said, is cartoonishly incorrect. She may be a member of the middle class – Costa sells advertising for WPRO – but her overarching philosophy of trying to shrink government down until it can be drowned in a bathtub is nothing but bad news for the working and middle class folks of Rhode Island and good news for the corporate elite.

To date, I think Fisher – WHO LIVES IN WOONSOCKET – has done the most interesting journalism on the Washington Post’s Woonsocket piece. He points out that while the city and the schools are going bankrupt and a third of the residents – and the local economy itself – is reliant on SNAP benefits, Woonsocket is also home of Rhode Island’s largest private sector employer, CVS, which gets more than $15 million in local and state tax breaks and pays its CEO $18 million a year.

There’s something to all that that I believe is the major reason Rhode Island finds itself in such bad economic shape.

I think conservatives, moderates, liberals and progressives all agree that the state’s struggles are pretty much concentrated in our urban areas. And I think everyone also agrees that the systemic poverty in Woonsocket, West Warwick, Central Falls, Pawtucket and Providence is terribly bad for Rhode Island (I think it’s the state’s biggest economic obstacle). Here’s where there is disagreement: do we want to continue with austerity measure and trickle down ec0nomics or do we want to try some bottom-up solutions.

I don’t think the couple dozen ACI inmates who may – or may not be – scamming the system will affect either our real-life economy or our made-up CNBC rankings one way or another.

Ken Block: Why Progressive RI Should Agree With Me


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Ken Block

Ken BlockWhile I might not agree with where Ken Block invests his energy and determination, I certainly have a lot of respect for his energy and determination. Even after I compared him to PT Barnum and likened his SNAP fraud investigation to Anthony Gemma’s voter fraud investigation, he still took the time to write an essay for RI Future on why progressives should support his efforts.

But either before or after reading Ken’s thoughts, please read my editor’s note at the bottom of his piece, and Sam Howard’s excellent analysis about how and what we communicate about those who live in poverty.

Here’s Ken’s piece:

There are two fundamental truths when it comes to social service spending programs—1) even now, these government assistance programs are not fully meeting the needs of low-income Americans and 2) there will always be people who say the government spends too much on these efforts.

The recent Washington Post story highlighting the effect of the Supplemental Nutrition Assistance Program (SNAP) on the residents of Woonsocket was a powerful reminder not only of the impact of the program, but how it is leaves people struggling to make those benefits last.

The issue of targeting waste and fraud in these programs is one that makes some in the progressive community uncomfortable, because they fear that highlighting real-world abuses of welfare programs will give fodder to the forces that want to eliminate them. But let’s be honest: no degree of welfare reform, not even the most effective effort to stop waste and fraud in the system, will be enough to silence those who want government to stop funding social service efforts.

So is it best then for the progressive community to fight for state and federal expansion of programs like food stamps and housing assistance, while simply ignoring whether waste and fraud are limiting the effectiveness of those programs? I say no. If we truly believe that these programs provide lifelines to individuals and families who desperately need help to get by in today’s difficult economy, I would argue that while fighting to fully fund these programs, progressives also need to make sure that the people who need help the most are getting it.

If government isn’t moving to add additional funding to these programs, then the next best thing is making sure that waste and fraud isn’t taking money away from families in Woonsocket and other parts of the state who need it.

I have spoken to people who run Health and Human Services programs here in Rhode Island and in states across the country. They are good people who know how to get assistance dollars out the door and into the community. But they are not always as effective when it comes to making sure those dollars are creating the desired outcomes. So when I talk to them about the importance of program integrity, they get it and they realize it is a way to maximize their effectiveness and to make an even bigger difference in the lives of the people they are trying to help.

What is program integrity?

It’s a way to make the most of a limited pool of dollars. It’s a way to get the most bang for our social spending buck. And it’s a way to help make sure that people in need don’t get left out because assistance dollars are going to those who don’t deserve them.

Program integrity is the formal name given to efforts to ensure that spending in public assistance programs is consistent with the mission and rules of those programs. I believe that program integrity should be an issue that the progressive community backs whole-heartedly.

In SNAP, the key program integrity issue involves stopping unscrupulous retailers (most often small convenience store owners) who facilitate the conversion of food benefits in the SNAP program into cash. Like payday lenders who prey on those without access to the banking system, these people take a cut of the money for providing this service—often as much as 50% of the total benefit due to a recipient. The beneficiary is then able to use whatever cash is left for non-food items that SNAP would not pay for otherwise. An effective program can red flag retailers engaged in this practice and put an end to it, so that funds aren’t being channeled to retailers and so that the children of SNAP beneficiaries aren’t left going hungry because the funds the family was counting on went to pay for cigarettes, alcohol or other non-food items.

In programs like housing assistance, there are finite financial resources and a limited number of available housing units. Using program integrity here helps to ensure that the neediest citizens are not unfairly denied assistance. Section 8 housing can often have a waiting list of many years. If someone living in a subsidized housing unit is misrepresenting their financial situation and hanging onto the unit as a result, a needier family is being denied access. This is an issue of basic fairness and if the agency providing the benefits has the ability to make sure everyone is playing by the rules, they have an obligation to do so.

As with any effort that throws off a lot of data, there will be people who misconstrue and attempt to misuse program integrity data to undermine the mission or activities of the agency involved. But with or without data, those attacks will go on from those who are hell-bent to force the elimination of these necessary social service programs. But by gathering and acting on this data, program integrity initiatives produce a larger good—ensuring that taxpayer dollars targeted for social service programs provide the best possible results. And in the long run, improved results will effectively marginalize the empty noise made by those whose agenda does not involve producing positive outcomes in our communities.

I truly believe that government should always strive to measure the effectiveness of all programs and initiatives to determine if those programs are achieving their stated goals and operating efficiently. That holds true whether we are talking about evaluating economic development incentives, tax policy, social service spending programs or even something as unglamorous as DMV waiting lines or wait times for service at the Department of Labor and Training. To me, this analysis is a cornerstone of good governance and an indicator of government accountability to voters and taxpayers. And that’s something progressives should be proud to support.

 

And here’s my equally long editor’s note:

  • I firmly believe Ken Block’s efforts on this report was not the work of someone who would make a good governor. I think he is really smart and obviously hard-working, but, as Howard writes, it is “full of conjecture and insinuation that wouldn’t receive a passing grade in a college course.”
  • Holding such an opinion does not equate to supporting public sector fraud. In fact, many have suggested areas of government where both more fraud and more potential savings can be found. Scott MacKay suggested physician and health care industry fraud, for example.
  • I think the most common takeaway from this piece will be that the progressive left doesn’t value good government initiatives.
  • I think because of the way the mainstream media reported on Block’s SNAP investigation, the biggest effect of his efforts will be to further foster the false narrative that there is a widespread social services abuse among those who live in poverty (Again, see Sam Howard’s post).
  • I might be wrong, but it’s worth considering that I’m right. It is an indisputable fact that local Republicans and other fiscal conservatives are using the media swirl around his report to counter progressive proposals – see this video of Dave Fisher asking House Minority Leader Brain Newberry about tax equity.
  • If I’m right, it’s an example of how politicians and pundits have learned to manipulate the marketplace of ideas, which is still largely driven by print and broadcast journalism/journalists/pundits.
  • Ian Donnis and Scott MacKay are the best around at using the tools of unbiased journalism to get Rhode Island politicians on the record, and it is well worth listening to their probing interview with Block from last week.
  • However, it’s worth mentioning that MacKay, who dismissed Block’s report last week in this op/ed, tipped his hand in the interview: When Donnis asked Block if teaming up to form a “taxpayers” group with members of RISC and the tea party – probably two of the most conservative groups in the state – cast a shadow on his reputation as a “moderate,” you can actually hear MacKay laugh when Block responds by saying, “I became the president of a re-branded, move to the center organization…” (It happens at 6:55 here … perhaps MacKay coughed, but it is laughable to suggest that joining forces with Lisa Blais, Harriet Loyd and Donna Perry is an attempt to move to the center.)
  • So much of what Ken Block does reminds me of the famous Thomas Pynchon line from Gravity’s Rainbow: “If they can get you asking the wrong questions, they don’t have to worry about the answers.”
  • Only news in his post: Ken Block says it is more important to increase funding to SNAP than it is to investigate waste and/or fraud.

The Value of Agency


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A recent article in The Washington Post on the effects the Supplemental Nutrition Assistance Program (SNAP) has on Woonsocket has once again placed the federal program in Rhode Island’s sights. Though the article is an indictment of our collapsed economy, a single part of the article focusing on the family’s finances seems to have caught the attention of both right and left. Here’s the offending part:

For the past three years, the Ortizes’ lives had unfolded in a series of exhausting, fractional decisions. Was it better to eat the string cheese now or to save it? To buy milk for $3.80 nearby or for $3.10 across town? Was it better to pay down the $600 they owed the landlord, or the $110 they owed for their cellphones, or the $75 they owed the tattoo parlor, or the $840 they owed the electric company?

And here’s Marc Comtois over at Anchor Rising:

They made some of the all too typical mistakes: teen pregnancy, move in together, have another child on their already low income and all exacerbated by a recession where the low-skilled are first and worst hit. Their economic ignorance and inability to prioritize is displayed by their $110 cell phone bill and tatoo parlor debt. That won’t help earn them much sympathy.

Yet, while they don’t seem to really “get it”–and I don’t want to give them a pass–society and the system certainly enable their naivete and ignorance. In today’s world, having a cell phone is simply a given–well nigh a “right” in the eyes of many–and spending money on tatoo’s is another norm, like getting your ears pierced used to be. That’s what you spend your cash, your “extra” money, on. Food comes from SNAP.

Here’s our own Dave Fisher, linking this story to the educational models of the state:

While I can certainly empathize with this couple, the fact that tattoos are an expense in a budget this small is patently ridiculous. Even for those with disposable income, body art should be considered a luxury.

Why do they not know this? Is this a failure of our education system, or a failure on their parents’ part? Is it just poor decision making?

In any case, the esoteric mathematics knowledge supposedly assessed by the NECAP has no relevance in their lives. Knowledge of simple Home Economics, on the other hand, may actually help this young family squirrel away some money and someday be able to wean themselves from the teat of federal assistance…

…And I’ve got some news for you, folks: When they fail, we — the royal we — have failed.

I like both writers, and on most issues they could not be further apart, but here you see them neatly align, almost parroting their arguments (though there are significant differences between the two). I’ll get to their arguments, but first I want to make a media point.

Post continues on next page (see “Pages” below “Related Posts”)

Weekend Epiphanies: Oh, SNAP! I Failed the NECAP

Saturday afternoon, I joined lawmakers, legislators, educators, and other concerned citizens in taking the mock NECAP math test sponsored by the Providence Student Union at Providence’s Knight Memorial Library. I have to give the folks over at PSU a lot of credit for organizing this event. It certainly opened my eyes to what our soon-to-be graduates are facing in Rhode Island.

First, let me say this. I have not had any formal mathematics education in over 20 years. Even when I was taking courses in trigonometry, algebra, and pre-calculus on a daily basis, I struggled with the subject matter. I always managed at least a ‘B’ in these classes, but literature, history, and music were the areas in which I excelled.

Since high school, I have never entrusted my formal education to any particular institution. By that, I mean that I’m an over-read, under-educated multiple college dropout who, oddly enough, considers his life to this point to be a relative success. At the end of the day, I’m happy, and I sleep really well.

But I digress. I walked into the mock NECAP test on Saturday with no expectation of coming remotely close to passing, and when I opened the test booklet and read the first question, that expectation was immediately reinforced.

As I delved further into the test, furiously and with futility trying to brush the cobwebs from corners of my mind that never worked well in the first place, I started to think about the applicability of these conceptual and very specific mathematics within my daily life. To put it bluntly, I found none.

As an example, one of the questions was:

x>|x|

Name all the integers that make this expression true.

My mind raced. “How can x be greater than x? What do the open brackets mean? Is that absolute value? Why do I have the song Sundown by Gordon Lightfoot stuck in my head? Man, this is really difficult.”

I suppose the point is this.

I saw, on this test, a set of very specific problems that — unless you are planning on a career in mathematics or the applied sciences — have little to no relevance within the vast majority of career choices. Unless you are planning on a career as a builder of triangular prism shaped holding tanks, knowing how to calculate the volume of one is pretty useless knowledge.

Side note: I scored 10 percent on the test, and given the sense of utter and complete failure I had when leaving the library, I’ll take that as a victory.

On Sunday, I woke to an inbox full of links to a Washington Post story on the boom-and-bust retail cycle created by the first-of-the-month distribution of Supplemental Nutrition Assistance Program, or SNAP, benefits in Woonsocket. One point of clarification for the Washington Post: Woonsocket is a city, not a town, thank you very much.

Sadly, a third of Woonsocket residents receive this assistance, and local food retailers experience a boom in sales on and around the first of any given month, and business drops off dramatically beginning in the second week of the month.

The young couple that is the focus of the story both work full-time at a local supermarket. They bring in about a combined $680 a week, before taxes. After taxes, that number shrinks to a bit over $450 per week. I would challenge anyone who dares say that those who collect state and federal assistance are “moochers” to attempt living on $1,400 a month without some type of assistance.

Now with the NECAP and mathematics fresh in my mind, a section of the article really jumped out at me. I read this paragraph in astonishment.

For the past three years, the Ortizes’ lives had unfolded in a series of exhausting, fractional decisions. Was it better to eat the string cheese now or to save it? To buy milk for $3.80 nearby or for $3.10 across town? Was it better to pay down the $600 they owed the landlord, or the $110 they owed for their cellphones, or the $75 they owed the tattoo parlor, or the $840 they owed the electric company?

While I can certainly empathize with this couple, the fact that tattoos are an expense in a budget this small is patently ridiculous. Even for those with disposable income, body art should be considered a luxury.

Why do they not know this? Is this a failure of our education system, or a failure on their parents’ part? Is it just poor decision making?

In any case, the esoteric mathematics knowledge supposedly assessed by the NECAP has no relevance in their lives. Knowledge of simple Home Economics, on the other hand, may actually help this young family squirrel away some money and someday be able to wean themselves from the teat of federal assistance.

I always thought that the point of teaching math isn’t really to learn math, it is to learn reasoning and problem solving skills in order to have the ability to make sound decisions; an area in which this young family, whether by lack of education or prioritization, is clearly failing. And I’ve got some news for you, folks: When they fail, we — the royal we — have failed.

WaPost Investigates RI SNAP Benefits Too


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The big story on the front page of the Washington Post this morning is the same one we’ve been talking about all week locally: the SNAP program. But instead of looking into the , the Post took a different angle: a third of Woonsocket is on food stamps and the local economy ebbs and flows with as does their dispersal.

Read this important story here

Food stamps, not job creators, are driving growth there. In other words, the private sector has failed Woonsocket.

This is not a scoop. Rhode Island has known for a long time that the cities with a lot of factories are the places that suffered the most when factory jobs left Rhode Island. So now Woonsocket, Central Falls, West Warwick, Pawtucket and Providence – the cities with the most factories – are all failing.

I firmly believe this is the biggest reason for Rhode Island’s economic mess and the most important issue facing the state. Not pensions or payday loans. Not high-stakes testing or binding arbitration. Not equitable taxes on businesses or their CEOs. Not welfare fraud and not corporate welfare. And not even the master lever or marriage equality.

I think Ken Block would do Rhode Island a great service by asking Chafee if he could use his considerable efforts and energy to look into why one in three people in Woonsocket can’t afford to feed themselves and why public sector assistance programs are driving the economy there.

Outrage Porn 2: Ken Block Takes On SNAP Fraud


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Ken Block

Ken BlockA SNAP expert examined the food assistance fraud report that software engineer and small government advocate Ken Block completed and said the results indicate Rhode Island is “doing a stellar job” mitigating misuse.

Progressive Providence Rep. Maria Cimini, who coordinates the SNAP outreach program at URI, said the national fraud rate for the program known as food stamps is between 1 and 3 percent. Block’s report indicates the fraud rate in Rhode Island is “one half of 1 percent,” she said.

“I read this and say we are doing a good job,” she said. “Unless his detailed report comes out very different, this is reason to be very excited.”

Cimini and others have questioned some of the assumptions the report makes. Cimini said that some conclusions are “ridiculous,” and that she was “disturbed by the implications” that there is a connection between SNAP recipients and illicit drug users (which of course you can read about on Anchor Rising).

She called attention to this paragraph (emphasis mine):

A smoker in the Simpatico office went to buy cigarettes that had an EBT certification and displayed odd characteristics of Food Stamp purchases. The shop rang her cigarettes up as food, indicating a likely tax evasion scam, as well as almost certain Food Stamp trafficking as well (the Simpatico employee did not have an EBT card)

“This statement does not indicate any fraud,” Cimini said.

The report assumes fraud when more than one person with the same address applies for SNAP benefits, but Cimini says Block is overlooking the fact that poor people sometimes share living space but not food expenses. She gave an example of a elderly parent who might live in an in-law apartment.

The report itself admits this claim is a stretch: “It is difficult to ascertain intent from the data, but it would be beneficial to clients to to overstate family size to the Food Stamp program…” (Ed. note: Block has been critical of RI Future for such communication techniques.)

Cimini was also critical of the way the media handled the story. “I think it is damaging that this was presented as uncovering fraud.”

Sam Howard recently wrote a well-received piece critical of WPRI for a story that made assumptions about how poor people spend government subsidies, calling it . Cimini made an interesting point about the media when we were talking about these two narratives: “Why can’t we ever say government is doing a good job.”

I asked her if she thought Block was acting in good faith with his report. She paused and said, “I think he probably was acting in good faith, but I think maybe some of the people he works with think everyone who gets assistance is fraudulent.”

Block recently teamed up with local tea party disciples and the remnants of RISC to form the RI Taxpayers group.

He also started a third party called the Moderate Party. But calling Ken Block moderate is like claiming California is in the midwest. (It’s only true if you consider Hawaii.)

The War On The Poor


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According WPRI’s Tim White and Dan McGowan, 100% of December 2012’s electronic benefit transfer funds are being used at completely legal locations. In any budget anywhere, that would be cause for celebration, it would be a gold standard by which to hold others accountable. However, that was not the lede that WPRI chose. They went with the more eye-catching “thousands of dollars in cash assistance were withdrawn from ATMs in liquor stores, bars, smoke shops and even Twin River casino…”

As Mssrs. White and McGowan show, approximately $10,000 out of the $3.1 million spent in Rhode Island EBT benefits are being taken out at ATMs in places where you can buy alcohol and tobacco; and $106 at a place where you can gamble. That amounts to 0.32% of all EBT funds. That’s a miniscule amount. And let’s be clear, these are completely legal ATMs that Rhode Islanders can use under Rhode Island and federal law. By 2014, those locations won’t be legal places and then we can say that 0.32% of EBT benefits are being withdrawn in illegal places. That hasn’t happened yet, and despite the area, there are still plenty of good reasons someone might take money out of an ATM at these places; such as convenience. Even the Twin River location could be explained as an employee using their card.

WPRI called these “questionable” places. Yes they are. But if we’re going to question this, we’ve got to hold up the mirror to ourselves. Has anyone ever charged their business for a “questionable” expense? To align with government assistance, what about that mortgage credit you received for buying a house? Have you bought any alcohol or tobacco since receiving it? Then you’ve used taxpayer dollars to pay for “questionable” expenses. That’s government money you got. What about that Social Security check your grandmother receives? She smoke or drink or gamble? Yes? All three, when she’s at Twin River? Turn her in to the Target 12 Investigators!

The difference between EBT and the mortgage credit and Social Security is that EBT goes to those who need it most. As Mssrs. White and McGowan point out, the maximum a family of four can earn is $1,438 a month and have less than $1000 in assets, not including a house or car. Left out of that is that the family of four is also living in Rhode Island. According the National Low Income Housing Coalition, to afford the “fair market rent” on a two bedroom apartment in Rhode Island and to spend no more than 30% of your income on it (thus making it “affordable”), you’d have to earn $3,081 a month.

There’s a word for stories headlined like the WPRI one. It’s “outrage porn” (the commenters on the story clearly were). And not even good outrage porn, since it found exactly zero cases of fraud. I understand the straits WPRI finds itself in. It needs to get those ratings up, and John DePetro seems to get a lot of mileage of SNAP… but come on, the “Heavy Hitter” getting disability from bankrupt Central Falls this is not.

If you want to be outraged, let’s talk about the butchery that was done to the Aid to Families with Dependent Children to turn it into TANF (Temporary Assistance for Needy Families) by the then-Republican Congress and then-President Bill Clinton. TANF doesn’t care about what the circumstances might be, you get a maximum of 60 months (5 years). So if you’ve say, been living in Rhode Island, attempting to make due since the recession started in Rhode Island (which was in 2006 for us, if you’ll remember) you ran out of TANF in 2008, because you didn’t find a job as the national economy worsened, and TANF requires that you find a job in 24 months (2 years) or your benefits are cut off (though states get the option to make the rules worse). Luckily though, TANF is only the callous part of the two programs that use EBT.

The other is SNAP (Supplemental Nutrition Assistance Program). SNAP beats every other program the government runs. Hands down, it is the best function of government we have. First, it feeds the hungry. Second, it never runs out because Sens. George McGovern and Bob Dole made damn sure America would not be a country that allowed its people to starve to death. That’s the fundamental vision there: no one should starve to death in the land of the free and the home of the brave. But there’s other reasons to love SNAP.

SNAP is also an economic bellwether. If you’d been paying attention to enrollment in SNAP over the last 10 years (funny story, you probably weren’t), you would’ve seen immediately when Rhode Island entered the recession. It was in 2006 when suddenly SNAP enrollment leapt up incredibly. At the time, administrators believed it was because of the robust outreach program they had. Even if that is true, it should have been a warning that economic circumstances were far more dire then we acknowledged or realized. The state should’ve gone into full recession-fighting mode. But hindsight is 20/20.

SNAP is also an amazing program because it automatically scales back as people don’t need it anymore. Like a good budget, it spends during lean years and then saves during the fat years. But since the American budgeting process it back asswards (spend wildly during fat years and cut back during lean ones), what you saw was Mitt Romney and Paul Ryan pointing to the massive increase in the cost of SNAP and saying “we need to cut this, it’s expensive.” Yes, feeding hungry people can be a bit pricey. But you know what’s even more expensive? Burying people and their children. It costs a hell of a lot more than the average of $1,611.48 per year that we were spending on each of the 47.7 million Americans enrolled in SNAP in September 2012. That’s 15.2% of all Americans in 2012 in case you were wondering.

Likewise, we will waste more more in court proceedings and imprisonment then we will save by attempting to go after the potential of $120,000 in savings. We will destroy families, causing instability and poverty. And Rhode Island will bear the costs, for policing a federal program with overly zealous laws. To save the Feds money, cash-strapped Rhode Island will take on the costs, costs that will undoubtedly exceed $120,000. That’s practically state-sponsored masochism.

We punish the poor so that the well-off can point to their government budget and say “look, we’re cutting back, we’re tightening our belts.” Then they’ll buy some expensive clothes, get drunk at an expensive restaurant, hire a family member or buddy for a $40,000+ yearly salary and blow $75 million on a video game company run by a retired baseball player. But you know what, instead of dealing with that, let’s keep passing laws to make life harder for the working impoverished, homeless, and destitute. After all, they’re just trying to survive in the greatest country on the face of the Earth.