New rules would limit spending of welfare benefits

At least 23 states have their own restrictions on benefit-card use

By John Hanna
AP Political Writer

TOPEKA, Kan. (AP) - A new Kansas law tells poor families that they can't use cash assistance from the state to attend concerts, get tattoos, see a psychic or buy lingerie. The list of don'ts runs to several dozen items.

More than 20 other states have such lists. But, the one included by the Republican-dominated Kansas Legislature in a bill that GOP Gov. Sam Brownback signed Thursday appears to be the most exhaustive, according to state Department for Children and Families officials.

It's inspired national criticism and mockery from "The Daily Show." Host Jon Stewart suggested that in accepting federal funds, Kansas should be forced to give up items like roads "paved with luxurious asphalt."

"The list has attracted attention because it feels mean-spirited," said Shannon Cotsoradis, president and CEO of the advocacy group Kansas Action for Children. "It really seems to make a statement about how we feel about the poor."

It is part of a broader welfare law taking effect in July that Brownback and his allies say is aimed at moving poor families from social services into jobs.

"We want to get people off of public assistance and into private-sector employment, and we've had a lot of success with that," Brownback during an interview this week with The Associated Press.

A 2012 federal law requires states to prevent benefit-card use at liquor stores, gambling establishments or adult-entertainment businesses.

At least 23 states have their own restrictions on how cards can be used, mostly for alcohol, tobacco, gambling and adult-oriented businesses, according to the National Conference of State Legislatures.

A few states - not Kansas - prohibit buying guns, according to the NCSL, and a few ban tattoos or body piercings. Massachusetts prohibits spending on jewelry, bail bonds, or "vacation services." A 2014 Louisiana law bars card use on cruise ships, which is also on the Kansas list.

Kansas Department for Children and Families officials said that it's difficult to track how often cash assistance is used for items on the state's new list because recipients can use their benefits cards to obtain cash. The law will limit ATM withdrawals of cash assistance to $25 a day.

The department said it reclaimed $199,000 in cash assistance from 81 fraud cases from July through February, but said most involved questions about eligibility. The state provided $14 million in cash assistance during the same period.

A 2014 federal report said a check of eight states' data showed transactions with benefit cards at liquor stores, casinos or strip clubs accounted for less than 1 percent of the total.

Critics question whether such restrictions can be enforced. Elizabeth Schott, senior fellow with the left-leaning Center on Budget and Policy Priorities, said enacting them simply creates an "aura of abuse."

"Undermining support for the programs is what the restrictions do," she said.

Phyllis Gilmore, Kansas secretary for children and families, said her state's list is a "composite" of others and has educational value, sending the message that cash assistance should be used for necessities.

Published: Fri, Apr 17, 2015

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