Governor's Office Statement about Inaccuracies in July 31 Indianapolis Star Story

INDIANAPOLIS, IN – The Indianapolis Star story of July 31 on the Daniels’ administration’s welfare modernization program contained numerous inaccuracies.  Two very serious errors are particularly important to correct.  First, the US Food and Nutrition Service did not order the Family and Social Services Administration (FSSA) to stop the modernization rollout, nor do they have the statutory authority to do so.  (See excerpt of email below from Kate Houston, deputy undersecretary of agriculture for food and nutrition). 

Second, in the lead paragraphs of a story about the welfare modernization program, the Star included comments from a client who was not from a county that was a part of the pilot program.  The client’s problems reflect the failings of the current welfare system, and explain why the governor has made fixing a broken system such a high priority.

When the governor took office, he inherited one of the worst welfare systems in the country.  Indiana was last in the nation in welfare to work, had system error rates resulting in more than $100 million in misspent taxpayer dollars annually and left more than half the clients dissatisfied with the service they received.

The modernization program provides clients with multiple means of determining their eligibility, including phone and Internet as opposed to the current system where they must appear at a county welfare office, often multiple times, to get the assistance they need.  The modernization program also moves from a paper-based system to one that stores and transmits documents electronically, improving customer service and reducing costs.  Caseloads are being reduced giving case managers more time to assist clients and ensure that benefits are only provided to those who are eligible for them.

The following is an excerpt from an email received today from Kate Houston, deputy undersecretary of agriculture for food and nutrition and consumer services:

“Our June 23 letter states that "FNS expects FSSA to realize substantial improvements in the area of application processing before the State proceeds with any additional roll-out of the modernization project".  This was not an order to stop rolling out - rather a statement that we trusted Indiana's commitment to successful implementation would lead the State to this same conclusion.

“FNS does not have the authority to order the State to stop the project.  As your statement notes, FNS has authority to suspend/disallow administrative costs under 7CFR276.4.  This authority is directed at violations of the Act and regulations.  We did not invoke this authority in our June 23 communication.”

Source: Governor Mitch Daniels' Office Press Release

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