“Child-care scams rake in thousands”
That was the blaring headline the Milwaukee Journal Sentinel used to begin its series of investigative reports on Wisconsin Shares, a state taxpayer supported child care system. The $340-million program, when successful, provides assistance to low-income parents to help them get and retain jobs.
During a four month period, reporter Raquel Rutledge pored over 2,500 records and documents and uncovered, what it called, ““a trail of phony companies, fake reports and shoddy oversight,” a system that could be scammed without difficulty or accountability by parents and child-care providers, “capitalizing on children for public cash.” With limited access to child care cases, the Journal Sentinel still pinpointed $750,000 in suspicious child-care disbursements.
The current conditions outlined by the Journal Sentinel are unacceptable. I’m appalled that rampant fraud and waste is occurring, especially at a time the state is suffering a huge deficit.
This legislative session, I serve as a member of the Joint Committee on Audit. I formally asked in a letter to the committee co-chairpersons that they request the highly regarded, nonpartisan Legislative Audit Bureau conduct a full review of the Wisconsin Shares child-care program. Three days later, the committee co-chairpersons announced the committee will hold a public hearing to decide if the Legislative Audit Bureau should conduct an audit. The hearing is scheduled for Wednesday, February 18, 2009 at 2:00 p.m. in Room 411 South of the State Capitol in Madison. The public is invited.
The taxpayers funding this program demand answers and accountability concerning the serious allegations made as a result of the Journal Sentinel’s investigation and subsequent reporting. My fear is that the problems associated with Wisconsin Shares are even more serious than the Milwaukee Journal Sentinel discovered. The state and local governments investigated refused to turn a great deal of information to the newspaper indicating the true scope of the problem could be even more serious and widespread.
I liken this to the welfare fraud allegations that led to major reform in Wisconsin that served as a model for the rest of the nation.
The newspaper articles along with a thorough review could lead to a much-needed overhaul of the program. Like the welfare scandals years ago, the taxpaying public will not tolerate waste and fraud. We have to protect the taxpayers and we must also ensure that the truly needy, the truly deserving are receiving program services. Measures to prevent cash-grabbing scams can be put in place only after a full audit.
The Legislative Audit Bureau will have far greater access and cooperation than the newspaper received and I trust will do an excellent job determining just how serious the fraud is in Wisconsin Shares. The last full audit of Wisconsin Shares was during 2001. It is time we have another.
