California governor Arnold Schwarzenegger has ordered the state’s Department of Social Services to take out clubs and casinos from the list of businesses that have been approved to dispense cash for state-issued cards. The California governor was compelled to make this move after the Los Angeles Times reported that more than 50 percent of California casinos and poker rooms are listed on the state website, indicating where welfare recipients can receive their cash benefits. The Los Angeles Times again brought the issue up, inquiring from the administration the amount of welfare cash that has been taken out from 17 adult clubs in the last few years.
It seems that many welfare recipients in the state of California have been able to withdraw taxpayer cash from ATMs situated at strip clubs and casinos. According to reports from the Department of Social Services, since the start of the year 2007 up to the end of the year 2009, over $12,000 coming from the program of Temporary Assistance for Needy Families has been dispensed at various clubs throughout the state, including Seventh Veil, Star Strip and Sam’s Hofbrau. Meanwhile, almost $4.8 million have been dispensed at casinos and poker rooms during the same time period. Majority of this, amounting to more than $4 million, were taken out from ATMs at tribal casinos.
The state administration and managers of strip clubs are apparently not aware that their ATMs have access to these welfare benefits. Allegedly, the machines have been provided by a third party. Thus, the managers have no way of knowing whether the ATMs belong to the state system or not. The Quest ATM network is the company in charge of the state’s ATM system.
However, some advocates for the underprivileged would rather keep things the way they are. They say that there is some logic to maintaining access to welfare cash from these establishments, as many recipients probably live or work nearby.
Since the report was released, Governor Schwarzenegger has ordered the deactivation of ATMs in casinos and entertainment clubs from the ATM network of the state. He has also called into action the Department of Social Services, so that welfare program can be reformed as deemed necessary.
During the month of May, Governor Schwarzenegger actually proposed to abolish the CalWorks program in order to reduce the budget deficit of the state. This program is in charge of providing cash for the welfare benefits.
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