New welfare rules crack down on questionable spending

PHOENIX — New welfare restrictions are targeting alcohol, casinos, strip clubs and lottery ticket purchases.

The legislation in February, signed by the president under the payroll tax cuts and unemployment benefits extension, bars people from using public-assistance dollars for reasons beyond what they’re designed to do.

Tasya Peterson with the Arizona Department of Economic Security said cases of people using assistance money at the casino, on booze and the lottery are not rampant.

“Do these things happen? Yes,” she said. “But it’s seldom and very minimal.”

Arizona has measures in place to prevent misuse of public assistance.

“For instance, if they try to buy a six pack of beer, there would be a block on that,” said Peterson. “They’re not allowed to buy alcohol.”

And if someone uses welfare money on a lottery ticket and happens to hit a big jackpot, they’ll be receiving a call from the federal government.

“We can see if someone has won money,” said Peterson. “We track that and we could intercept that lottery money or cancel their benefits.”

Peterson said most people are just trying to get by on a monthly basis with the basic needs like food, shelter and rent for their family.

States must change their own laws to conform with federal law by 2014. Peterson said Arizona is ahead of the game.

“The restrictions we already have in place give us a good hold on this issue,” she said.

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