California spends more than other states on welfare and has the most welfare fraud in the country — and it’s getting worse. Reform California proposes program audits and pursuit of a “prosperity” approach to lifting individuals out of poverty.
California has an expansive welfare program for state residents. Composed of several programs, welfare is meant as a safety net to help those in need get back on their feet — but after many years of throwing taxpayer money into expanded welfare programs in California, it looks like the effort can be declared a monumental failure.
Analysis of California’s welfare programs shows that spending more money on welfare has not lifted state residents out of poverty - but has only made matters much worse for low-income residents.
California’s budget last year provided $23 billion for welfare programs — a $6 billion or 37% increase from the year prior. These programs include Department of Developmental Services, In‑Home Supportive Services, SSI/SSP, Department of Social Services Child Care, Child welfare services, CalWORKs, County Administration/Automation, Department of Child Support Services, Department of Rehabilitation, and Department of Aging.
The state has the most food stamp recipients in the country, at approximately 3,789,000, and spent $9.8 billion on the program in 2020.
Overall, California spends more than other states on its welfare assistance for a total of over $103 billion — nearly double the spending of the next closest states of New York ($61.4 billion) and Texas ($35.4 billion).
Carl DeMaio, chairman of Reform California, says that the programs are structured for failure.
“We have the most generous welfare spending out of any other state and the most people of any state on certain types of assistance — but those numbers keep going up rather than going down,” explained DeMaio. “While one goal of welfare is to be a safety net, the larger goal should be to ensure that no one needs welfare permanently and that you actually reduce its use over time,” he continued.
DeMaio points to provisions like time limits as contributing to potential welfare abuse. CalWORKs allows cash aid for four years - and regularly allows waivers to get around that generous limit.
In addition to dependency, there’s rampant welfare fraud in California. In 2016, California had the highest rate of food stamps fraud in the country, with 2,123 cases prosecuted. The state lost over $6 million as a result.
During the 2020-2021 Covid-19 supplemental unemployment insurance programs over $30 billion in fraudulent payouts were made.
“California’s overinflated bureaucracy and liberal politicians fail to audit and manage these programs thoroughly and it’s led to significant abuse at a cost to taxpayers,” said DeMaio. “We are literally funding fraud and failure,” he continued.
What’s worse, says DeMaio, is that besides intent to abuse, more Californians are seeking aid because they are legitimately struggling with the state’s cost of living.
“The goal of welfare is to get people off welfare, but whether it's for abuse or genuine need, more and more people are joining these assistance programs,” said DeMaio. “At a time when inflation is at 8.5% and California Democrats are increasing taxes and fees every day, it's no surprise that people are desperate — our families are struggling and many are even fleeing California,” he explained.
DeMaio proposes a thorough audit of the welfare programs to cut waste and expose flaws.
What’s more, DeMaio says the state should emphasize policies to jumpstart economic development, job creation, and prosperity - while reducing the cost-of-living of residents.
“The best way to help low-income individuals is to make it less expensive to live while helping them expand their earnings,” DeMaio notes. “We need a prosperity-inducing agenda in California, but right now we only have a poverty-inducing agenda,” DeMaio concluded.
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