California – Welfare (Tourism) State
It seems California’s needy aren’t so much in need of food and shelter as they are in need of vacations. Millions of dollars in CA state welfare funds are being spent in Vegas casinos, on trips to Hawaii and cruise ships departing from Miami.

Advantage Card
An investigation by the LA Times has uncovered that $69 million in CA state welfare funds was withdrawn or spent using Golden State Advantage aid cards in all the 49 other states, and even the US Virgin Islands.
Out of the $69 million, the most ($11.8 million) was spent in Las Vegas. Around $1 million was spent in shops and casinos or in close vicinity of the Strip. $34,700 was withdrawn at an ATM near Wynn’s Encore Resort. Nearly $8,000 was spent at the Venetian.
Florida got aid worth $1.5 million – $7,000 spent at Walt Disney World and $13,109 in the bars and restaurants on Lincoln Road in South Beach.
Hawaii enjoyed a $387,908 handout from the California welfare funds, out of which $234,000 went to Oahu – mostly spent on stores ($12,433 at the Ala Moana Shopping Center) or withdrawn at an ATM.
To top it all off, $16,010 was spent on 14 cruise ships, eight of which sailed from Miami and the rest from such exotic locations as Rio de Janeiro and Beijing.
And the irony is that California state and county officials aren’t able to do much because they’re not able to separate the genuine cases from these welfare tourists because there’s no budget for the manpower required to follow up and verify fraud.
CalWORKs and the Dept. of Social Services have already been hit with a similar report like this in June, in response to which they came up with a fraud prevention plan (pdf file) in July. It includes extending ATM restrictions on the aid card to other locations (casinos and strip clubs in California) and guaranteed funding for fraud prevention and investigation.
As an immediate reaction to the LA Times report, ATM access on the aid cards has been cut off on cruise ships and at all out-of-state casinos. Also, State Assemblyman Ted Gaines (R-Roseville) is about to introduce legislation that would prohibit spending benefits outside California.
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