KANSAS CITY, Mo. - At a time when the number of people relying on public assistance continues to grow, millions of dollars worth of Missouri and Kansas welfare money is being spent all over the country, including states like California and Florida, and even as far away as Hawaii and Alaska.
An NBC Action News investigation is asking: How big of a problem is abusive use of the taxpayer-funded programs?
Crunching the numbers
NBC Action News requested several months of out-of-state transaction data from the Missouri Department of Social Services (DSS) and the Kansas Department of Social and Rehabilitation Services (SRS), which oversee the distribution of welfare funds.
The numbers showed people used their electronic benefits transfer (EBT) to make purchases in all 50 states. A majority of the money comes from the federally-funded food stamps—or SNAP—program.
Some recipients also have a monthly cash grant under the Temporary Assistance for Needy Families (TANF) program. These funds are a mix of federal and state money and be accessed through many ATMs.
Data on specific food stamp transactions, including items purchased, location of retailer, and amount of purchase are not public records. State departments like SRS say even they are not able to review the records kept by the US Department of Agriculture.
However, NBC Action News also requested the locations of ATM withdrawals (TANF funds) in three states: California, Florida and Nevada.
Numbers reveal millions spent out of state
From January thru March, Missouri EBT card holders spent about $11.8 million dollars in other states. During the same time period, Kansas recipients spent $3.6 million.
By far, the most out-of-state transactions using Kansas funds occur across the state line in Missouri, and vice versa. In fact, about 99 percent of Kansas out-of-state transactions take place in bordering states (Missouri, Oklahoma, Colorado and Nebraska). Missouri follows essentially the same pattern.
It’s the remaining one percent of transactions that can raise eyebrows.
INTERACTIVE FEATURE | How much welfare cash is being spent in other states?
Places like California, Florida and Texas represented a significant amount of the remaining out-of-state funds.
From January thru March, Kansas welfare recipients spent:
• $294,920.08 in Texas
• $81,105.26 in California
• $80,157.32 in Florida
From January thru March, Missouri welfare recipients spent:
• $456,040.22 in Texas
• $251,063.70 in California
• $348,220.40 in Florida
Occasionally, funds are even accessed in the most distant states. In Hawaii, Missouri recipients spent $9,239.92 and Kansas recipients racked up $2,908.62.
Analyzing ATM withdrawals suggest gambling, vacation spots
Earl Glynn, director of government money-tracking Kansas Watchdog , studied the numbers with NBC Action News.
“I was surprised that people go as many places as they do with their EBT cards,” said Glynn. “There doesn’t seem to be any place they don’t go.”
Glynn plotted the ATM withdrawals on Google maps to give a better sense of where the cash is being spent.
BE THE INVESTIGATOR | Analyze the ATM withdrawls
Among some of the transactions with Kansas money:
• A $202.95 withdrawal from the Las Vegas Short Line Express Market, advertising beer, snacks and video poker
• A $123 withdrawal at 11:20 p.m. at a Walgreen’s on the Las Vegas Strip
• A $202 withdrawal from a 7-11 near the Strip
• Back-to-back withdrawals totaling $363 at a Disney World gift shop
And here are some of the questionable transactions with Missouri dollars:
• A $203 withdrawal at Walgreen’s on the Strip
• A $208.85 withdrawal outside the Sands Expo and Convention Center
• A $234 withdrawal at Big City Liquor in San Diego
• A $202 withdrawal at Coast Liquor in Laguna Beach, CA
• A $102 withdrawal at Dotty’s, advertised for gaming and spirits
• A $82.85 withdrawal on Disney World property
Reaction from state departments
NBC Action News spoke with Rob Siedlecki, Secretary of the SRS Department in Kansas, to find out why there are so many out-of-state transactions.
“The first time I looked at the amounts, I said, ‘Wow, that is a lot of money,” said Siedlecki, who was nominated for position in January by Gov. Sam Brownback. “But then I looked at the percentages and it’s about 1 percent going to states that are not on our borders. When I put it in perspective, it wasn’t as bad, but even that number can be too high if there is fraud or waste involved.”
Since it is a federally-funded program, it is perfectly legal for food stamp recipients to use the benefits in any state. Siedlecki said there are legitimate reasons why the funds might be accessed in distant locations. Someone might be taking care of a sick family member, attending a funeral, or searching for employment, he said.
“We want to make sure cheats aren’t taking money away from those who truly need it,” he said. “If you’re going to states like Alaska, Florida and Hawaii, we’re definitely taking a bigger look at it.”
Siedlecki
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