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subrob1967 -> RE: PA cuts off those most in need (6/30/2012 7:28:47 AM)
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FR,
Ok this has got to be the first time I've seen anyone complain about a foreign company OUTSOURCING jobs TO the US...
That being said, your source is pretty confusing, in one sentence it says,
quote:
The budget plan for the 2012-13 fiscal year that begins Sunday would increase spending by about 1.5 percent, largely for debt, pensions and health care for the poor, as well as to help fill a shortfall in the almost- finished fiscal year.
And in the very next sentence it says,
quote:
Meanwhile, it would cut business taxes by hundreds of millions of dollars, deposit around $350 million to $400 million into reserves and slash hundreds of millions of dollars from services for the poor, homeless, troubled and disabled.
Now THIS SOURCE says that the government found, quote:
Over the past few years, the Pennsylvania Department of Public Welfare conducted a series of audits and uncovered many questionable practices among state contractors. Some providers of welfare services have taken advantage of unclear rules and regulations to nickel and dime Pennsylvania families. By misusing funds meant for the truly needy, these providers contribute to today's bloated welfare budget, the single largest state General Fund expenditure. Shifting to a fee-for-service payment instead of reimbursing all provider expenses would prevent waste and abuse, freeing up tax dollars and reducing the number of truly needy Pennsylvanians waiting for help.
Over two years, training provider KRA charged more than $1.8 million in unsubstantiated or unidentified expenses to the Department of Public Welfare.
KRA, a for-profit company, also used taxpayer money to send 130 people on a sunset dinner cruise and expensed an open bar, buffet and amusement package at adult amusement restaurant Dave & Buster's for 90 people. KRA terminated its contract during the audit process.3 Total cost to taxpayers: $50,773.
Western PA Child Care, LLC charged $84,000 for limousine service to an NCAA basketball game and King of Prussia Mall, a custom-made suit for an executive, a chartered fishing trip and other related party expenses.
WPCC is a for-profit company with government contracts to provide housing and services for juvenile delinquents.
WPCC opened in 2005 under the ownership of Robert Powell, who was convicted for concealing a felony in the "kids for cash" scandal in 2009, and George Zappala, who bought Powell's WPCC shares in 2008.
Shortly after executives enjoyed these perks, WPCC experienced cash flow problems. In early 2008, the facility received shut-off notices from utility providers, incurred late fees from vendors and lost required court documents for juvenile residents.4
The executive director of It Takes a Village Childcare and Learning Center, Inc. charged taxpayers for undocumented expenses and took 28 percent of the organization's state contract, totaling $173,077.
The executive director received about $139,000 in salary and collected $34,432 in non-salary payments—including fringe benefits, undocumented lease expenses, travel, insurance, and cell phone reimbursements—over two years.
A check for $5,022 to Staples could not be supported since the receipts totaled only $399. When auditors asked to see the equipment supposedly purchased, they were told it had broken and been discarded.
The audit recommended the organization pay back $44,926, but officials negotiated a repayment of $24,000.5 Total tax dollar waste: $20,926.
Taxpayers paid twice for mortgages on the same properties, and paid rent for the same homes, totaling more than $1,000,000 in duplicated payments.6
Taxpayers reimbursed Lynch Homes for mortgage payments and then paid a usage fee, like rent, of 8 percent for homes used to provide community-based services to the intellectually and developmentally disabled. Lynch was also receiving reimbursements for maintenance on the homes.7
In 2011, Lynch Homes sold properties to provider Kencrest. Due to a quirk in the welfare department's reimbursement system, taxpayers are on the hook again to pay the new mortgages Kencrest took out to purchase the properties from Lynch Homes.8
Providers serving the intellectually disabled in Pennsylvania used thousands of taxpayer dollars for unnecessary luxury goods.
Supportive Concepts for Families, Inc. spent $73,152 leasing luxury vehicles, including an Acura MDX for $689 a month and an Acura RL for two years at $835 a month. SCFF could have purchased four Chevy Impalas for the cost of leasing one Acura RL.9
The Department of Public Welfare determined that $900,000 of a $3.6 million severance package for the CEO of a mental health and intellectual disabilities service provider was inappropriately invested taxpayer funds.
Allegheny Valley School awarded its former CEO a severance package taken from a taxpayer-funded account for capital costs. Program regulations prohibit providers from using interest (in this case $900,000) for non-capital expenses. The transfer occurred while AVS was merging with another provider, Northwest Human Services.
After the audit uncovered this misuse of funds, NHS reimbursed the account.10
Source
Now who are we to believe? On one hand we have the oh so heartbreaking story written by someone at the AP, or we can believe there is rampant corruption and wasteful spending found by the Commonwealth's Auditors.
As always there's two sides to each story, one is a tale of the down trodden, starving masses who have nowhere else to turn. The other is a tale of fiscal responsibility, based in the real world where money doesn't grow on trees, and the people realize that the gravy train went off the proverbial rails due to fraud and wasteful spending.
Welcome to the real world Erie.
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