Monday, February 25, 2013


The sad state of Illinois

Tapped out Illinois can’t even pay to bury its impoverished dead. The service was hollow.
The congregants sat before the cheap casket in worn, workingman clothes. The pastor
saying the last words kept forgetting the dead man’s name. I’m sad to say, more than 20 years later
even I, the reporter sitting in the back of the chapel, now struggle to remember the fellow’s name.
His life alternated between jail cells and street corners. And at the service he was receiving more respect in death than he had in life. He was buried by the state.
Funerals for the destitute are sad affairs. It’s usually a cheap casket, a rented pastor and burial in a potter’s field. Anyone who is a regular reader of this column knows that I believe government
should be limited in scope. But burying the penniless has been a governmental functional since Biblical times — long predating the modern welfare state. And even this basic government
function is failing in Illinois. The state’s funeral and burial program wasappropriated $9.58 million for the current fiscal year, and yet funeral homes directors complain of waiting as long as a year for the state to pay them for their services. Increasingly, funeral homes and cemeteries are just saying
no when asked to handle an indigent person’s funeral arrangements. They operate businesses, after all. Their employees won’t wait a year to get paid. Their suppliers won’t wait a year to receive a check. But somehow the state seems to think it is just fine to make businesses wait. Of course it’s not just funeral homes and cemeteries that are getting this sort of shabby
treatment from our government.It’s also doctors, dentistsand pharmacists. Thoseare just a few of the professions where you’ll find individuals choosing not to offer services to Medicaid patients
because the state pays them a fraction of their actual costsand reimburses them months late to boot.
Often those relegated to the Medicaid rolls are left searching for a provider — any provider — willing to offer their family care. More people may have Medicaid cards. But fewer people are choosing to treat those carrying them.
Please keep in mind this is happening at a time when state revenues are at their peak. Never before in the state’s 195-year history has it taken in more money. And yet the Land of Lincoln is spiraling toward insolvency.Why?
Our leaders have consistently made poor decisions. Problems with pensions have been kicked down the road for decades. When difficulties needed to be addressed, they were avoided. Politicians made vows, knowing full well they wouldn’t be in office when those promises came due. We needed leadership; instead we got the same old politics. Now, under new accounting
rules, state pensions are underfunded to the tune of more than $200 billion. When circumstances called for belt tightening, our lawmakers chose to expand government instead. The state now has $9 billion in unpaid bills. But earlier this month, the Illinois House voted to approve a host
of questionable appropriations. “They voted to spend $115,000 for an Illinois Basketball Hall of Fame in Danville and $30,000 or $40,000 for bicycle racks, and even more for a mining monument in southern Illinois — at a time when we can’t even pay our bills,” said state Rep. Tom Morrison,
R-Palatine. “People think that isn’t much money — but it all adds up. And we shouldn’t be spending money on new programs like this when we can’t even pay our bills.”
Core functions of government - incarcerating criminals, educating children,
maintaining roads — have suffered because of such political indecision. Government can’t be all
 things. “No” is a healthy word for lawmakers to learn because the more spending balloons in some areas, the less there is to spend in more important areas. After all, we live in a state that struggles just to bury its dead. Don’t we deserve better?
Scott Reeder is the journalist in residence at
the Illinois Policy Institute. He can be reached
at: sreeder@illinoispolicy.org.

Tuesday, February 12, 2013


Food Stamp Rolls in America Now Surpass the Population of Spain

February 11, 2013
“Now is the time to act boldly and wisely – to not only revive this economy, but to build a new foundation for lasting prosperity,” said Obama during his first joint session address to Congress on Feb. 24, 2009.(CNSNews.com) – Since taking office in 2009, food stamp rolls under President Barack Obama have risen to more than 47 million people in America, exceeding the population of Spain.
Since then, the number of participants enrolled in food stamps, known as the Supplemental Assistance Nutrition Program (SNAP), has risen substantially.
When Obama entered office in January 2009 there were 31,939,110Americans receiving food stamps.  As of November 2012—the most recent data available—there were 47,692,896 Americans enrolled, an increase of 49.3 percent.
According to the 2011 census, Spain had a population of 46,815,916.
Furthermore, between January 2009 and November 2012 the food stamp program added approximately an average 11,269 recipients per day.
President Obama will deliver his fourth State of the Union address Tuesday evening.  Obama is expected to focus on jobs and the economy.


Millions Improperly Claimed 

U.S. Phone Subsidies

By SPENCER E. ANTE

The U.S. government spent about $2.2 billion last year to provide phones to low-income Americans, but a Wall Street Journal review of the program shows that a large number of those who received the phones haven't proved they are eligible to receive them.

The Lifeline program—begun in 1984 to ensure that poor people aren't cut off from jobs, families and emergency services—is funded by charges that appear on the monthly bills of every landline and wireless-phone customer. Payouts under the program have shot up from $819 million in 2008, as more wireless carriers have persuaded regulators to let them offer the service.

Suspecting that many of the new subscribers were ineligible, the Federal Communications Commission tightened the rules last year and required carriers to verify that existing subscribers were eligible. The agency estimated 15% of users would be weeded out, but far more were dropped.
A review of five top recipients of Lifeline support conducted by the FCC for the Journal showed that 41% of their more than six million subscribers either couldn't demonstrate their eligibility or didn't respond to requests for certification.
The carriers—AT&T T +0.48% Inc.; Telrite Corp.; Tag Mobile USA; Verizon Communications VZ -0.07% Inc.; and the Virgin Mobile USA unit of Sprint NextelCorp. S +0.69% —accounted for 34% of total Lifeline subscribers last May. Two of the other largest providers, TracFone Wireless Inc. and Nexus Communications Inc., asked the FCC to keep their counts confidential. Results for the full program weren't available.
The program is open to people who meet federal poverty guidelines or are on food stamps, Medicaid or other assistance programs, and only one Lifeline subscriber is allowed per household.
The program, which is administered by the nonprofit Universal Service Administrative Co., has grown rapidly as wireless carriers persuaded regulators to let people use the program for cellphone service. It pays carriers $9.25 a customer per month toward free or discounted wireless service.
Americans pay an average of $2.50 a month per household to fund a number of subsidized communications programs, including Lifeline.

For the carriers, the program is a chance for them to sign up more subscribers and make a small profit, plus more money if customers go over their small initial allotment and need to buy more minutes or text messages. Carriers can set prices for their Lifeline subscribers as the companies wish.
Until last year, FCC rules didn't require carriers to certify to the FCC that subscribers were eligible. Consumers could self-certify, and in many states documentation wasn't required.

Carriers said many of the disqualified subscribers simply didn't reply when asked to prove their eligibility. They also said the FCC rules on self-certification, and the absence of a national database of participants, made it hard to keep ineligible people from signing up.

The FCC said it is investigating allegations that some Lifeline providers violated the rules, though it declined to comment on that probe. Carriers that don't properly confirm eligibility can be fined up to $150,000 for each violation for each day of a continuing violation, up to a maximum of $1.5 million. In egregious cases, a carrier could lose its ability to participate in the program.
Telrite said it confirms Lifeline eligibility but said it had been difficult to verify the one-phone-per-household rule.

A Verizon spokesman said the "vast majority" of the subscribers removed from its rolls didn't respond to eligibility checks. While Sprint found that some of its subscribers were no longer eligible, it, too, found that many others didn't respond, a person familiar with the carrier's operations said.

AT&T hadn't detected the ineligible subscribers because customers self-certified under old rules and because some states required the company to provide Lifeline service to people enrolled in certain state assistance programs, according to a person familiar with the company's thinking.
Tag Mobile didn't respond to requests for comment.

TracFone Chief Executive F.J. Pollak declined to say how many customers his company shed. Nexus Communications didn't respond to a request for comment.

Two years ago General Communication Inc. GNCMA +0.12% paid more than $1.5 million to settle allegations that Alaska DigiTel LLC, an Alaskan company it owns, submitted false claims to the FCC for more than four years. General Communication said the alleged misuse occurred before the company took day-to-day control of Alaska DigiTel.
Lifeline users have been a source of subscriber growth in the otherwise saturated U.S. market and helped fuel the expansion of companies like TracFone, now the fifth-largest U.S. wireless carrier.
The FCC until last year allowed consumers to self-certify, without requiring documentation, that they met federal poverty guidelines. Subscribers didn't have to recertify once they were enrolled in the program, and there were few checks on whether households signed up for more than one cellphone.
"The program rules we inherited were designed for the age of the rotary phone and failed to protect the program from abuse," FCC Chairman Julius Genachowski said.

The agency pushed through new rules last year, requiring documentation when a Lifeline customer signs up. Consumers also must certify that no one else in their households is using the program. Carriers now have to check a state or federal social-service database to confirm eligibility and must reverify eligibility every year.
Carriers were required by Jan. 31 to report the number of subscribers they had removed from Lifeline as of the end of last year. The data reviewed by The Wall Street Journal came from those reports.

The FCC said new verification procedures saved nearly $214 million last year, and projected total savings over the next three years would reach $2 billion. Disbursements under the program began to drop in the third quarter after 12 consecutive quarters of increases.
Write to Spencer E. Ante at spencer.ante@wsj.com
A version of this article appeared February 12, 2013, on page A1 in the U.S. edition of The Wall Street Journal, with the headline: Millions Improperly Claimed U.S. Phone Subsidies.