Thursday, July 26, 2007
Contact: Jessica Robinson, 573-751-0290
Blunt's Tough Stance Against Fraud Recovers $2.5 Million for Taxpayers
JEFFERSON CITY–Gov. Blunt's success in targeting waste and fraud in state spending continues to equal big savings for Missouri taxpayers. The governor announced today that his administration's most recent investigation into welfare programs saved $2.5 million by uncovering such schemes as shielding income from Medicaid claims and elaborate efforts to cheat the child care system. The announcement adds to the more than $150 million already saved as a result of the governor's commitment to improve efficiency and eliminate fraud and waste.
"When people cheat the system by shielding income or creating false evidence of jobs or child care they not only hurt taxpayers, they hurt the Missourians who are truly in need of this assistance," Gov. Blunt said. "There is no room for fraud and waste in our state's generous welfare programs or anywhere else in state government. Missourians can be proud that our efforts to crackdown on those who cheat and abuse the system are saving the state millions of dollars every year and ensuring Missourians' hard earned tax dollars are being used as they are intended."
In Fiscal Year 2007, the state recovered more than $2.5 million dollars of public assistance benefits that were fraudulently collected. The review process investigates abuse and fraud occurrences in the Food Stamp, Medicaid and Temporary Assistance for Needy Families (TANF) programs and complements the governor's ongoing directive to eliminate waste and abuse across state government.
"We continue to improve our efforts to root out fraud and abuse, and the Welfare Investigation Unit works tirelessly to ensure state benefits are being used as they were intended," Department of Social Services Director Deborah Scott said. "This is another solid example of our commitment to maintaining the integrity of the public assistance system."
Last year, the unit investigated more than 2,500 cases of suspected public assistance fraud. Nearly half of these cases resulted in payment agreements, court convictions, or a disqualification of Food Stamp benefits. The result is nearly $1.4 million dollars in repayments.
The state also enlists the help of the Treasury Offset Program. The program helps collect repayments for fraudulently used Food Stamp benefits by intercepting federal tax returns. Last fiscal year, the program helped the state collect more than $1.2 million dollars.
The state relies on a team of experienced investigators directed by Larry M. Dickerson of Jefferson City. Before becoming a state employee, Larry was with the Federal Bureau of Investigation.
Today's $2.5 million announcement adds to the significant savings already recognized throughout the governor's administration. For example, among other things:
- Blunt's crackdown on fraud and abuse identified $19.5 million in savings within the state funded child care program for low-income Missourians. The savings allowed Blunt to expand care to nearly 3,400 children at no expense to taxpayers.
- Consolidations spearheaded by the governor in the state's information technology resources have improved efficiency and available expertise while saving taxpayers more than $1 million every year.
- The governor's call to eliminate waste is saving taxpayers more than $750,000 every year in natural gas costs.
- Putting an end to duplicate services offered by both the Departments of Corrections and Mental Health has led to more than a quarter million per year in savings.
- Eliminating wasteful postage practices is saving tens of thousands of dollars within several state agencies including the Departments of Revenue and Natural Resources.
- The governor considers the value of every taxpayer dollar and has lauded every dollar saved, including a $300 annual savings recognized by consolidating a cleaning contact in the Department of Public Safety.