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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?


To: Sidney Reilly who wrote (111395)8/28/2011 1:38:30 PM
From: Neeka5 Recommendations  Read Replies (2) | Respond to of 224718
 
This is the most ridiculous thing that comes out of the mouths of partisan liberals.

Prove it!

Statements like that are used to cut needed benefits from real needy people who are not "gaming the system".Some Republicans think the poor should be homeless, starve and die and they don't care.



To: Sidney Reilly who wrote (111395)8/28/2011 8:05:08 PM
From: lorne3 Recommendations  Read Replies (1) | Respond to of 224718
 
Sidney...."Some Republicans think the poor should be homeless, starve and die and they don't care. And they probably call themselves Christians too!"...

Who Gives More: Democrats or Republicans?
Tuesday, November 28, 2006
philanthropy.com


In his new book, Who Really Cares: The Surprising Truth About Compassionate Conservatism, Arthur C. Brooks presents research showing that religious conservatives are more charitable than secular liberals. He says people who support the idea that government should redistribute income are among the least likely to dig into their own wallets to help others. Included in his book is an analysis of 15 sets of data that he says all came to the same conclusion.

What are the implications of his findings? Does it matter to charities whether they get more money from Democrats or Republicans? What can be done to counter these trends? What research data was used to reach these conclusions?

Related Article


The Guest
Arthur C. Brooks is professor of public administration at Syracuse University and a frequent contributor to The Wall Street Journal. His new book, Who Really Cares, was just published by Basic Books.

A transcript of the chat follows.

Stacy Palmer (Moderator):
Good afternoon. I'm Stacy Palmer, editor of The Chronicle of Philanthropy and am pleased to welcome you to our discussion about a new book on charitable giving that is provoking much debate around the country. We'll be taking your questions throughout the hour, so please send them in -- just click on the link on this page that says "ask a question." Mr. Brooks, thank you for joining us and could you tell us what prompted you to write this book?

Arthur C. Brooks:
Ten years ago in graduate school, I began studying the economics of nonprofits and charitable giving. Like most everybody else in the field, I looked at tax rates, deductions, exemptions, incentives. I also looked at the amount of money people gave away, and how much it could pay for in important services.

But it always seemed to me that something was missing from the scholarly discussions of charity in America. Charitable behavior is certainly affected by economic incentives, and it is an important source of money for nonprofits. But giving is, more importantly, a question of our values.

Giving is a uniquely common phenomenon in America: We give more time and money than the citizens of any other developed country. And I think this expresses some of our core values. To reduce the phenomenon of giving to money flows and tax incentives, it seemed to me, was to miss the main point of giving for so many people. When people talk about their giving, they talk about causes that really move them -- helping the poor, participating fully in their churches, or supporting a social cause their care deeply about. They talk about being their best selves, and they talk about the benefits they enjoy themselves.

Giving is a fundamental form of expression for most people, and one that transcends both consumer transactions and the ballot box. Yet I saw that as scholars and experts, we often treat it in a rather materialistic way, as just another instrument of funding or tool of public policy.

So a couple of years ago I set out to take a serious look at giving from a values perspective. Who Really Cares is the result. It lays out the best evidence -- as I see it -- about how currents in American culture today are pushing some people to give, other people not to give, and why it all matters.

That said, the book is not intended as the last word on giving values in America -- far from it. My hope is to start a conversation on the topic (like we're having here today), and with a little luck, to stimulate more research. I'd love it if, in 5 years we have a bigger knowledge about why people give and why they don't, and I can see which of the results in this book stand up to further scrutiny by scholars and practitioners.

My thanks to all of you who are making time to read the book, and to participate in this discussion.

Question from Jim Girvan, College Health Sciences Dean:
I am intrigued by your findings and will definitely buy the book. My question is two-fold: first, as a member of family who gives a high percentage of our income to church and a rather large percentage to charity as well, my wife and I acknowledge much of our church offerings go to running the "business of the church." Do your statistics adjust for the "average 150-700 member congregation" where 70-75% of the offering monies are needed for church functions/personnel/maintenance?

Second -- My wife and I also view our taxes as one way we assist the community. By pooling monies, each of us enjoys services that few of us could afford by ourselves, and many of those services are available to those who can't pay. Is there a way your calculations could be adjusted to reflect the social welfare impact of tax monies on the populace as a whole? (remembering that I view them as donations even though I admit they are not voluntary)

Arthur C. Brooks:
Thanks for your questions, Jim. I agree it's important to look at giving aside from sacramental contributions to get a fair picture of things. So one of the things I do in the book is to compare secular and religious folks only in terms of explicitly nonreligious giving and volunteering. There's still a huge difference:

Religiously-observant people are generally about 10 percentage points more likely than people with "no religion" (or who never practice) to give to nonreligious causes, and about 25 points less likely to volunteer.

Regarding taxes, I think it's true that some see them as a voluntary part of the social contract to help others. The problem with trying to make a measure that combines donations with taxes is that so many people don't pay their taxes with this intent, and voluntary charity is so different in terms of deciding where and how money is spent. Still, I discuss the fact that this point has conceptual validity in some places, especially Europe where social spending really is high.

Question from Arnold Hirshon, NELINET (non-profit library consortium):
1. Is there any evidence that conservatives generally have more disposable income, and therefore are better able to give more -- both on a dollar basis and as a percentage of income?

2. Did the study show the extent to which conservatives vs. liberals actually lend their time to help others versus open their wallets?

3. Did the study show the value of a tax benefit for conservatives versus liberals?

Arthur C. Brooks:
Great questions, Arnold. In general, there is little evidence that conservatives are richer than liberals. In the data I used in this book, conservatives earned slightly less than liberals, but donated more in each income class. Regarding volunteerism, the gap is statistically insignificant between liberals and conservatives, although adding in religion makes a gap open up (religious conservatives volunteer a lot more than secular liberals). It's not clear whether conservatives or liberals enjoy a disproportionate tax benefit from giving, although you might plausibly argue that liberals generally get a bigger benefit because they reside in greatest numbers in high-tax ("blue") states, and thus can deduct more. Still, the emerging research on tax shows that deducibility actually affects giving behavior relatively little for most folks.

Question from Kim S., consultant:
I consider myself to be a "compassionate conservative" working in the nonprofit sector (having worked in the corporate sector for many years.) It is my impression that the nonprofit sector skews liberal/Democrat, at least at the general policy and advocacy levels. Do you agree, and if so, how can Republicans and conservatives become more of a presence, or have a stronger voice, in the nonprofit sector?

Arthur C. Brooks:
Kim, I think it's probably true that nonprofit managers fall disproportionately on the liberal side -- like academics, journalists, and others. (One big exception is certainly Evangelical and traditional Catholic clergy.) If conservatives want to change the political makeup of nonprofit management, it probably means taking areas like social entrepreneurship more seriously. An example of such an effort is the Manhattan Institute's Center for Civic Innovation.



Question from Marilyn, small Midwestern college:
Are these two possibilities: Republicans have more money and need the tax write-offs and are more often sought out by charities; some people who describe themselves liberals (like me) share money in ways that are not recognized as charity (such as helping friends put their children through college or helping a physically handicapped co-worker pay for appropriate housing)? My husband and I also served for two years in a Christian volunteer service project, which has, as we knew it would, affected our long-term earnings and hence our retirement income.

Arthur C. Brooks:
Thanks, Marilyn. There's no evidence that conservatives look for (or receive) tax write-offs more than liberals do. But to your other point, it is always possible that folks like you tend to give in different ways from conservatives n ways that are not picked up in the data. The evidence is pretty incomplete on this point, although it suggests that conservatives actually give informally in some ways more than liberals (e.g. giving blood). But it is always possible that, in other ways, they give less. I am open to this possibility and believe it needs more study.

Stacy Palmer (Moderator):
Mr. Brooks will continue to take your questions throughout the hour and we encourage you to join the conversation. To submit your question, click on the link that says "ask a question."

Question from Ben Brumfield, nonprofit software provider:
While corroborating your main points from his own research, James Lindgren has criticised your analysis for glossing over moderates, who apparently donate less than conservatives or liberals. Your own paper "Faith, Secularism, and Charity" suggested that intensity of political feeling mattered more than political orientation. Would you discuss the role of political moderates in Who Really Cares?

For Lindgren's commentary, see his post here: volokh.com

Arthur C. Brooks:
Thanks, Ben. My comparison between liberals and conservatives in the book was motivated by the common stereotype that conservatives are less compassionate than liberals, so I really wanted to compare these two groups specifically. If I had been trying to argue that politics per se affected giving, I would have spent lots of space in the book looking at "moderates," who often have low civic engagement levels just as often they have weak political views. But the point in the book was to show that charity differences are actually due to attitudes and behaviors (such as religiosity and attitudes about the government) that go deeper than political affiliations. In the book, I actually point out the fact that when we correct for the "deep attitudes," politics don't predict giving very well. In other words, politics are correlated with giving at the group level and contradict the stereotypes about charity -- and that's important to know. But if we want to know exactly why this is, we have to go into much deeper than politics. Perhaps not surprisingly, that second story isn't the "top-line" one that's showing up in the press a lot.

Question from Stephen L. Rozman, Tougaloo College:
Do you make a distinction between giving to religious organizations (including churches) and giving to other types of groups?

Arthur C. Brooks:
Stephen, Yes. But I should note that most of the data ask people to distinguish between religious and secular giving themselves, which injects some real precision into the distinction. My friend Alan Abramson has noted this in a couple of places. One of the reasons I used so many different data sources in the book is because I was worried about imprecision and bias from self-reported giving, and wanted to make sure lots of datasets told me more or less the same thing.

Question from Stacy Palmer:
Professor Brooks, what difference will the Democratic takeover of Congress make in terms of charitable-giving policies?

Arthur C. Brooks:
That's an important question for all of us in this discussion, I'm sure. One take on this question is provided in the last issue of Chronicle by Les Lenkowsky, and I recommend that editorial highly. I think it's fairly likely that we'll begin to see more support for increased regulation on private foundations. Also, the repeal of the estate tax is no longer remotely likely. Of course, the effect this latter policy has on giving is totally unknown, because people disagree whether the estate tax raises or lowers philanthropy.

Question from Harvey Blumberg, Montclair State University:
Is income equality a factor? Also age?

Arthur C. Brooks:
Harvey, Absolutely. Beliefs about income equality and income redistribution lie behind very definite giving differences. Chapter 3 talks a lot about the fact that proponents of income equality by means of government redistribution mechanisms are less likely to give voluntarily to charity than those who oppose redistribution. Lots has been written about age as a factor in giving. In general, folks give more as they get older.

Question from Michael Kearns:
In the Center on Wealth and Philanthropy Charitable Giving Indices: Social Indicators of Philanthropy by State study, the top 10 states for CWP Measure 4 of Giving Relative to Income Ranked by State are: New York, District of Columbia, Utah, California, Connecticut, Maryland , New Jersey, Georgia,Massachusetts and Hawaii. 8 of those states would be classified as "blue states" whereas the bottom 10 states are: Maine, Mississippi, Indiana, Missouri, New Mexico, Iowa, South Dakota, Vermont, West Virginia and North Dakota are almost exclusively red.

So my questions are:

1) Does this study contradict your book?

2) If the premise that conservatives give more than liberals, does it matter which state the conservatives live (i.e. do conservatives living in blue states give more than those in red states). And if so, why?

Arthur C. Brooks:
Thanks, Michael. There are various high-quality indices of giving by state and region, and they do indeed come to different conclusions. The simple one I use (comparing giving as a percentage of income with the electoral map) is supported to a large extent by the work at the Newtithing Group, and also by the giving data contained in the Indiana Center on Philanthropy's PSID data. That said, there are lots of ways to look at geography and giving, and the question is far from settled. But more importantly for this book, the main forces across individuals and states are not primarily political, but cultural. In answer to your second question, I think state matters less than things like religion. If the state counts per se, it will have to do with things like tax policies, which (in my view) are really not all that important.

Question from Walter Minot, U of South Alabama:
Are there figures for conservative charitable giving apart from direct contributions to a person's parish church or local branch, which may be a form of self-serving convenience to keep the institution going?

Arthur C. Brooks:
Walter, my answer above to Jim sums that up pretty well. I'd like to point out, however, that even if giving to churches is something like a "club membership" for some folks, we still need to look at it as voluntarily supporting a civic organization, so it is not entirely dissimilar to other kinds of charitable giving.

Question from Tom S., educator:
I am a fairly conservative Evangelical who gives significantly to charities, both religious and otherwise. I was recently at a liberal-focused educators' gathering where a speaker presented the Evangelical viewpoint very fairly and accurately, though it was clearly not her viewpoint. She mentioned the fact that Evangelicals are extremely generous. I knew this to be true, but was amazed to see the crowd's amazement at this statement. I was also refreshed to hear the comment made. Do you think there is a trend toward recognizing this reality? What evidence have you seen for (or against) such a trend?

Arthur C. Brooks:
Tom, There still exists the stereotype that conservatives n including conservative Christians n are inherently stingy people. This is strikingly common in much of academia, where it's possible not to even know an Evangelical person personally. I hope the truth becomes better known, because it will help religious and secular people work together with the facts in hand, and ultimately to increase American giving. If this happens, a big part of the reason will be because Evangelicals seek more to work with secularists and others in secular giving environments.

Question from Stacy Palmer:
Based on your research, do you have any advice for how fund raisers can best appeal to potential donors?

Arthur C. Brooks:
Well, my first response is that fundraisers should actually APPEAL to donors more. It's really shocking how many nonprofits don't take fundraising seriously, or do so in a way that doesn't honor the intent or wishes of givers. My research shows me very clearly (and I hope shows my readers as well) that giving is hugely beneficial to givers themselves, and so nonprofits do an immense service to individuals, communities, and our nation as a whole by fundraising per se. I know it's counterintuitive, but fundraisers need to understand that one of a nonprofit's highest functions can be to connect people who have a need for services with people who have a need to give (that is, all of us).

Question from Tom S., Educator:
In the Chronicle of Philanthropy article, you are quoted as saying, "I'm tithing my royalties assiduously." Tithing (giving 10%) is a strong Judeo-Christian concept. Did you find any parallel concept or pattern in the non-religious community?

Arthur C. Brooks:
Tom, First of all, I kind of regretted seeing that quote in the story, because I didn't intend that comment to be a boastful one, but rather a statement of fact. I think there are effective standards of giving in secular communities, particularly in elite philanthropy. Where we can use more attention is in "regular" secular charity. It would be very useful to try and establish more of a social code of an appropriate giving level. The devil is in the details of course, and I'm not sure yet how this could be accomplished without being morally heavy-handed.

Stacy Palmer (Moderator):
I'm afraid that is all we have time for today. Thank you all for posing so many terrific questions and thanks to Professor Brooks for offering us a new perspective on charitable-giving patterns. If you have any additional questions about the Chronicle or suggestions for how we can serve you better, you can always write to us at editor@philanthropy.com



To: Sidney Reilly who wrote (111395)8/28/2011 8:06:16 PM
From: lorne4 Recommendations  Respond to of 224718
 
Charity's Political Divide, Republicans give a bigger share to charity (Democrats Don't)
The Chronicle of Philanthropy Ben Gose
Posted on 12/27/2006
by Coleus
freerepublic.com


Republicans give a bigger share of their incomes to charity, says a prominent economist

It's been a tough month for conservatives, with the Republican Party losing control of both houses of Congress, but a new book being released this week may help brighten their spirits. In Who Really Cares: The Surprising Truth About Compassionate Conservatism (Basic Books), Arthur C. Brooks finds that religious conservatives are far more charitable than secular liberals, and that those who support the idea that government should redistribute income are among the least likely to dig into their own wallets to help others. Some of his findings have been touched on elsewhere by other scholars, but Mr. Brooks, a professor of public administration at Syracuse University, breaks new ground in amassing information from 15 sets of data in a slim 184-page book (not including the appendix) that he proudly describes as "a polemic."

"If liberals persist in their antipathy to religion," Mr. Brooks writes, "the Democrats will become not only the party of secularism, but also the party of uncharity." Some scholars say Who Really Cares builds on the work of Robert D. Putnam's Bowling Alone: The Collapse and Revival of American Community, which was published in 2000.

'Call to Action for the Left'

Mr. Brooks is Roman Catholic and politically independent, and has registered as both a Democrat and a Republican in the past decade. In an interview, he says he set out to write a book about values and philanthropy, with no hidden agenda. He believes liberal Democrats must ignore their leaders who sometimes disdain charity, and demonstrate that the Democratic Party is still welcoming to people of faith, if they hope to prove that they are, in fact, the more compassionate party. "This book is a call to action for the left, not a celebration of the right," Mr. Brooks says.

That's a claim that some liberals may have a tough time believing, given Mr. Brooks's withering criticism in the book of liberal icons like Ralph Nader, Mr. Brooks's work for The Wall Street Journal's famously conservative op-ed page, and a promotional tour for the book that reads like a conservative coming-out party. There's a keynote address at a Manhattan Institute for Policy Research dinner, a book signing at the American Enterprise Institute, and an interviews with John Stossel of ABC's 20/20 and radio talk-show host Michael Medved — two people known for conservative views. Patrick Rooney, director of research at Indiana University's Center on Philanthropy, says Mr. Brooks's inclusion of strongly worded personal opinions is "a doubled-edged blade." "He will certainly get more attention," Mr. Rooney says. "But at the same time, it might invite more criticism and skepticism." Mr. Brooks says he is ready to take the heat. "If I did my job, this will stimulate a whole bunch of new work," he says. "In five years, I'd be delighted to say that in certain ways, I was wrong."

Arts and Philanthropy

Mr. Brooks, 42, grew up in Seattle, the children of college professors, and after college worked as a professional French-horn player in orchestras in Annapolis, Md., and Spain. In 1998, he earned a Ph.D. in economics from the Frederick S. Pardee RAND Graduate School, in Santa Monica, Calif. In his research, he has focused on the arts and charitable giving. Few economists have focused on philanthropy, he says, leaving plenty of "low-hanging fruit" for a young scholar. He kept his head down during the early years of his academic career, publishing the usual economics fare on philanthropy — such as how tax rates and government spending affect giving.

"I made my academic career doing that stuff, but the whole time I knew I was missing something," he says. Mr. Brooks, now a full professor and director of nonprofit studies at Syracuse's Maxwell School of Citizenship and Public Affairs, wanted to move beyond the financial incentives and deterrents to giving, and instead examine the values that underlie philanthropy. His initial research for Who Really Cares revealed that religion played a far more significant role in giving than he had previously believed. In 2000, religious people gave about three and a half times as much as secular people — $2,210 versus $642. And even when religious giving is excluded from the numbers, Mr. Brooks found, religious people still give $88 more per year to nonreligious charities.

He writes that religious people are more likely than the nonreligious to volunteer for secular charitable activities, give blood, and return money when they are accidentally given too much change. "There is not one measurably significant way I have ever found in which religious people are not more charitable than nonreligious people," Mr. Brooks says. "The fact is, if it weren't for religious people in your community, the PTA would shut down." Byron R. Johnson, a sociology professor and co-director of the Institute for Studies of Religion at Baylor University, says he recently gathered data that show similar results — such as high levels of civic engagement among religious people — while assembling a report on faith in America that was released in September.

"It was not surprising to me that the lil ol' farmer in South Dakota outgave people in San Francisco," Mr. Johnson says. "But I think to the everyday citizen, this might strike them as counterintuitive." The first draft of the book focused mostly on religion. Lara Heimert, Mr. Brooks's editor at Basic Books, told him there was "an elephant in the room" — his failure to grapple with the connections between politics and giving. Mr. Brooks agreed that he needed to tackle politics. He writes that households headed by a conservative give roughly 30 percent more to charity each year than households headed by a liberal, despite the fact that the liberal families on average earn slightly more. The book includes a "charity map" of the United States that closely resembles the now-famous electoral map showing blue and red states. Of the 25 states that donated a portion of household income above the national average in 2001, Mr. Brooks writes, 24 gave a majority of votes to President Bush three years later.

Most of the difference in giving among conservatives and liberals gets back to religion. Religious liberals give nearly as much as religious conservatives, Mr. Brooks found. And secular conservatives are even less generous than secular liberals. At the outset of his research, Mr. Brooks had assumed that those who favor a large role for government would be most likely to give to charity. But in fact, the opposite is true. Several times throughout the book, Mr. Brooks quotes Mr. Nader, the political activist, who said during his 2000 presidential campaign: "A society that has more justice is a society that needs less charity." Mr. Brooks calls it a "bitter irony" that those favoring income redistribution are not doing much redistributing from their own bank accounts — and he blames liberal leaders like Mr. Nader for letting liberals off the hook.

"In essence, for many Americans, political opinions are a substitute for personal checks," Mr. Brooks writes. In an interview, Mr. Nader, who had not seen an advance copy of Who Really Cares, says he has a tough time believing that Mr. Brooks's conclusions about weak giving among liberals are accurate. "If you look at the liberal environmental and antipoverty groups, you don't see counterparts on the right wing," he says. "Everyone could be giving more to charity," Mr. Nader says. "I don't think liberals give enough, and I don't think conservatives give enough." Alan J. Abramson, director of the nonprofit-research program at the Aspen Institute, a Washington think tank, questions whether Mr. Brooks is putting too much stock in data on giving, which Mr. Abramson describes as "mushy." He notes that surveys on giving put the percentage of American households who give to charity at between 50 percent and 80 percent — an incredibly wide range.

"If somebody called you up and asked you how much you gave last year, God knows what number you would pull out of the air," he says. Mr. Brooks writes in the appendix that he tried to overcome this problem by using 15 sets of data, based on surveys conducted with individuals in person, over the phone, or through the mail. Every survey led to the same conclusions. "While individual surveys and populations might produce inaccuracies and biases, a large body of evidence is more trustworthy," he writes. Mr. Abramson also argues that scholars will need to examine the data more closely to determine whether conservative and religious donors are more compassionate — which doesn't necessarily follow from giving more.

Much religious giving is akin to paying dues at a club; it goes for such things as paying salaries and keeping the lights on. And in their secular giving, Mr. Abramson says, it is conceivable that conservative and religious people may be more likely than liberal donors to give to charities like colleges and hospitals, which do not focus mainly on serving the poor. "Even if conservatives or religious people are more generous in that they give more, it doesn't necessarily follow that they're giving redistributively," Mr. Abramson says. Mr. Brooks says the data show that religious people, on average, give 54 percent more per year than secular people to human-welfare charities. Some of those charities may be religiously affiliated, but their work is focused on charity and not religion, he says.

Giving by the Poor

In his book, Mr. Brooks examines giving among the poor. When looking at households with equivalent income, the working poor give three times as much as welfare recipients. Mr. Brooks writes that the very act of receiving welfare may make recipients more liberal — and hence less likely to give. But other differences between the working poor and those on welfare may explain the giving gap, says Paul G. Schervish, director of the Center on Wealth and Philanthropy at Boston College. Research shows that welfare recipients are less involved in their communities than the working poor. "What causes giving is associations," he says. "The people on welfare may be more isolated in terms of their networks." As he builds his statistical case, Mr. Brooks occasionally unleashes free-market rhetoric. He calls giving as "a bucket with no leaks" — meaning that it helps both the giver and the receiver — and at times seems to argue that all government spending on social programs is suspect, given its potential to "crowd out" private giving.

"Some people will always say that government spending (based on taxes) is necessary to pay for things that private charity will not," he writes. "This may be true. But we must remember that taxation has some very destructive consequences for communities and for the nation as a whole. Charity, in contrast, has only the upside." Rev. Jim Wallis, a Christian writer and political activist, says such comments betray a naïveté about how antipoverty programs are supported. Both philanthropy and government spending are important, he says, but the spending by government on welfare and social-service programs dwarfs the money that donors and foundations bring to the table. "Religious people who are generous can be used by the political right to justify government not playing its rightful role," Mr. Wallis says. "The right should not use our generosity to justify their irresponsibility."

Near the end of the book, Mr. Brooks lays out the case that philanthropy is as good for the donor as for the receiver, citing data showing that giving makes one happier and healthier. Fund raisers should take heart in such data, he argues. Their appeals are putting potential donors on the path to a better life. "This is one of the most noble things that you can do," Mr. Brooks says. Such findings have affected the way he and his wife approach their own giving, which he calls "our duty and our privilege." The couple has set up a donor-advised fund at the Central New York Community Foundation to become more systematic about their philanthropy. "I'm tithing my royalties assiduously," Mr. Brooks says.




To: Sidney Reilly who wrote (111395)8/28/2011 8:58:47 PM
From: lorne3 Recommendations  Respond to of 224718
 
California but gives an idea of the rest of the country. Cant get Charts to post properly.

WELFARE FRAUD PREVENTION
AND INVESTIGATIVE FUNCTIONS
OF THE
DEPARTMENT OF PUBLIC SOCIAL SERVICES
INTRODUCTION
grandjury.co.la.ca.us

The Research and Follow-up Committee of the 1998-1999 Grand Jury reviewed selected topics from the Final Reports of the previous five Grand Juries, noting specifically the responses given to the audited agencies to the recommendations made in those Final Reports.

One of those subjects was an audit by the 1996-1997 Grand Jury, pointing out changes needed in the DPSS to eradicate recipient fraud in the Los Angeles County Department of Public Social Services (DPSS), also called the Welfare Department. It appeared from the Research and Follow-up Committees' study that many of the previous Grand Juries' recommendations were not taken seriously, and in some instances were strongly disputed, or even vehemently rejected. Therefore, that Committee felt those responses to be unsatisfactory, inappropriate, or inadequate, and referred the subject to the Health and Human Services Committee for review and consideration for a more extensive overview audit of the DPSS's operation.

Almost concurrently the Los Angeles Times, in an August 14, 1998, article, reported an egregious instance of large-scale internal fraud by an employee of the DPSS. Subsequent newspaper articles and television documentaries further highlighted that instance and other potential and actual problems in the operation of the DPSS. We also learned from preliminary interviews that the potential for fraud, both external (recipient) and internal (staff), that exists in the Los Angeles County Department of Public Social Services is enormous. Further, based on extrapolated audit data obtained from two other Southern California counties, the potential annual savings that may be realized by Los Angeles County could exceed $500 million.

As a result, the Health and Human Services Committee of the 1998-1999 Grand Jury

determined that a wide-ranging management audit of the DPSS was necessary to accomplish the following goals:

1. Determine the nature, extent, and cost to taxpayers of welfare fraud in Los Angeles County.

2. Assess the adequacy of the DPSS's internal control systems which are designed to prevent fraud.

3. Develop on-going, permanent procedures to prevent, or minimize, the occurrence of fraud in the future.

4. Develop a reporting system designed to detect and periodically report welfare fraud on a regular and timely basis.

As the Committee studied the magnitude, extent, and objectives of such an audit, it was found that some, but by no means all, of the recommendations of the past audit had, in fact, subsequently been implemented. That, along with the budgetary limitations of the Grand Jury, made it necessary to perform only a Limited Management Audit.

Methodology:

The scope of this audit includes both recipient and staff fraud. The functions and activities of the Department's Welfare Fraud Prevention & Investigation (WFP&I) group, Internal Affairs Section, and Fraud Prevention Unit of two district offices (Metro Family, and Metro Park) were reviewed. Group and individual interviews were conducted with the Director and numerous department representatives, including the Director of the Bureau of Administrative Services; the Chief of the Specialized Services Division; the Chief of the Human Resources Division; the Director of Welfare Fraud Prevention and Investigation Section (WFP&I); the Human Services Manager of the Management Information & Evaluation Section; supervisors and selected staff of the WFP&I, and the Internal Affairs Section; directors and key staff of the Metro Family and Rancho Park district offices; and the Chief of the LEADER project; as well as other selected staff from that project. Representatives of the Fraud Division of the Office of the District Attorney were also interviewed.

There were briefings by the Department's Internal Security Task Force regarding Department plans to strengthen its internal controls. A personal visit was also made to San Diego County's Health and Human Services Agency and the District Attorney's Office to review their internal security, and fraud prevention and detection safeguards.

A sample of Internal Affairs and WFP&I case files was reviewed and 33 internal investigation files were selected at random from 187 cases opened between February 1997 and November 1998. In addition, 165 WFP&I files, which included both early fraud and full field investigation cases, were selected for review at random from the Ranch Park and Metro Family Offices.

Data and documents were collected and reviewed from the Department including caseload statistics, budgetary information, fraud related policies and procedures, previous Department, County, and other reports on fraud, overpayments, and investigative methods and findings.

A glossary of frequently used acronyms is provided at the end of this report.

OVERVIEW OF FRAUD FUNCTION
In Los Angeles County, welfare fraud detection and prevention are performed by a combination of Department of Public Social Services (DPSS) and District Attorney staff. The function is divided into two components: 1) external or recipient fraud, and 2) internal or employee fraud. Recipient fraud cases are investigated by the Department's Welfare Fraud Prevention & Investigation (WFP&I) section. Internal (employee) fraud cases are investigated by the Internal Affairs section of the Department's Human Resources division. WFP&I is part of the Department's Bureau of Health Adult, and Specialized Services. Human Resources is part of the Department's Bureau of Administrative Services.

DPSS Background

DPSS administers Los Angeles County's social services programs. Its major programs are CalWORKs (formerly Aid to Families with Dependent Children or AFDC), Food Stamps, General Relief, Medi-Cal, GAIN, and Adult Services. In the first nine months of 1998, the Department issued benefits to approximately 1.4 million persons, or over 800,000 cases, and received approximately 58,000 applications for aid each month. In September 1998, the value of the benefits issued by the Department totaled approximately $164.5 million for all aid programs. The Department has approximately 10,000 employees. The eligibility and case work staff is housed in 30 offices located throughout the county.

The DPSS has recently begun to implement welfare reform in response to changes in federal program regulations. In addition, the Department is in the midst of implementing a major department-wide new computer system.

The Welfare Fraud Prevention & Investigation Section (WFP&I).

This section has 321 employees, primarily investigators and clerical and administrative support staff. The investigative staff is divided into two groups: 1) Early Fraud/Early Action investigators; and, 2) centralized field investigators. The Early Fraud/Early Action investigators are all assigned to one of the 30 District offices. Investigators are in the District offices and are readily accessible and available to eligibility workers and other District office staff to quickly conduct investigations at the point of intake (Early Fraud) or after aid has been granted (Early Action). They are distinguished from the central field investigators, who are located at the WFP&I headquarters and are responsible for investigations where historical fraud is suspected.

Of the 321 total positions in WFP&I, 120, or 37 percent of the total, are Early Fraud/Early Action investigators and supervisors, and 107, or 33 percent, are central field investigators and supervisors. The other 94 positions, or 30 percent, are administrativesupport and management positions, or staff in the Section's Automation and Prosecution unit.

By design, the caseload for Early Fraud is much higher than that of the field investigators, as the cases assigned to the latter group are more complex and involve more research into case history. Early Fraud and Early Action investigations, on the other hand, are intended for cases that can be resolved very quickly at the District offices, with information that is fairly readily available.

All cases begin as a referral to either the Early Fraud/Early Action or central field investigation staff where they are assigned and processed. If fraud is found and if overpayments have been made, aid can be denied for applicants or discontinued or reduced for ongoing cases (where fraud is discovered at some point after aid has been granted and received). After a case is closed, the Department initiates a collection process to recoup the overpayments.

Caseload and results for WFP&I for FY 1997-98 (the most recent year provided by the Department) were as shown in Table A:

Table A

WFP&I Investigation Caseload Results: FY 1997-98

Early Fraud Full Field Investigations Total % Total
Complete d
Early Fraud Full Field Investigations Total % Total Complete d

Fraud found-no impact on eligibility

21,169 0 21,169 28.6% Aid denied or discontinued

11,054 150 11,204 15.2% Fines or court action taken

0 5,154 5,154 7.0% No fraud found 21,253 15,171 36,424 49.3% Total Investigations Completed 53,476 20,475 73,951 100.0% % Total 72.3% 27.7% 100.0%
As can be seen, 53,476, or 72.3 percent of the investigations completed by WFP&I in FY 1997-98, were Early Fraud cases. The other 27.7 percent, or 20,475 completed investigations, were full field investigations. Of the 73,951 total investigations completed, fraud was found and aid was denied or discontinued or court action was taken in approximately 16,358, or 22.2 percent of the cases (combining the 15.2 percent and 7.0 percent as shown in Table A). In 21,169 cases, or 28.6 percent of the investigations completed, fraud or misrepresentation was found but it had no impact on the recipient's eligibility. This means that the recipient provided inaccurate information in some area such as their income or household composition, but the misrepresentation did not change their eligibility or the amount of aid they received.

Finally, in 36,424 cases, or 49.3 percent of the total, fraud charges were not substantiated. Sometimes this conclusion was reached based on lack of credible evidence; in other instances it is reached by default due to the absence of needed evidence such as missing case file documentation. It should be noted that, though it may sound high, this no- fraud-found rate of 49.3 percent is not unusual for most counties. In the third quarter of calendar year 1998, for example, the statewide rate for the number of completed investigations with allegations unfounded or insufficient evidence was 52.3 percent.

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