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April 30, 2011 in Region
DSHS official resigns over fraud uproar
SEATTLE — The official in charge of Washington state’s food stamp and child support agency has resigned amid an uproar over televised remarks he made that appeared to dismiss evidence of welfare fraud.
KING-TV reported that Department of Social and Health Services Assistant Secretary Troy Hutson, of the Economic Services Administration, tendered his resignation in the past week. Several state lawmakers have recently called for him to be fired.
The station used public records requests to reveal that in the span of one year, people using state-issued welfare debit cards withdrew about $2 million from ATMs at Washington casinos. Furthermore, it determined that DSHS issued replacement cards, with no questions asked, to people who claimed to have lost theirs. Each month last year, the department handed out an average of 27,000 replacement cards. Some 20,000 people had cards replaced three times or more, and nearly 100 had their cards replaced at least 20 times.
The station also documented cards being sold on the street and on the website Craigslist.
Hutson told the station that the department replaced the cards so quickly because it wanted to provide good service and convenience to the state’s poorest residents. He also suggested that just because the money was withdrawn in casinos doesn’t mean it was spent there, and it might cost more to investigate apparent fraud than the state could recoup.
Those comments that drew the ire of state lawmakers, who said Hutson should be setting a higher standard in preventing fraud and showing more respect for taxpayer money.
“It seems clear from the television report that his position as a steward of our citizens’ valuable tax dollars has not imbued in him a sense of the serious nature of these documented offenses,” Republican state Sens. Mike Hewitt, Mike Carrell, Andy Hill and Jeff Baxter wrote to DSHS Secretary Susan Dreyfus on April 7.
Dreyfus has asked former Eastern Washington U.S. Attorney James McDevitt for a report on the public assistance system. That report will go to former Franklin County Prosecutor Steve Lowe, who has been hired to run an office in charge accountability and program integrity.
It is against state law to use welfare money for gambling.
In an interview with The Seattle Times on Friday, Hutson reiterated his position.
“They’re poor,” he said. “Even if you go after them, you’re not going to get the money back.”
He added: “I believe we are accountable to the taxpayer and need to make sure we are getting good value for the dollar, but I also believe that even if you are poor, you deserve excellent customer service, and you deserve to have dignity.”
State Rep. Mark Miloscia, D-Federal Way, who has a background in auditing and quality control, came to Hutson’s defense.
“In my judgment, Economic Services is the best-run agency in the state and was on track to be recognized nationally,” he said.
During Hutson’s tenure, the agency was recognized by the federal government for efficiency and accuracy in processing food stamp benefits, which netted $6 million in bonuses that went directly into the state’s general fund, according to a 2010 DSHS news release.
An immigrant from South America and the child of a single mother, Hutson grew up poor. He served 19 years in the Army, earned a degree in nursing from Seattle University, a law degree from University of Washington, and a degree in agriculture in the West Indies. Before joining DSHS, Hutson was vice president of the Washington State Hospital Association.
He took a pay cut to come to DSHS because he was drawn to the work, he told the Times.
DSHS spokesman Thomas Shapley said fraud cannot be tolerated and public confidence in the integrity of the system must be maintained.
“When you are dealing with taxpayer dollars, people who are needy and the worst economic times since the Great Depression, you have to watch every dollar and every dime,” Shapley said.
Four dead, two wounded in Seattle shootings 
oneanddone on April 30 at 4:37 p.m.
Ironic that the right screams bloody murder about waste, fraud, and abuse in all welfare programs and then turns around and grabs their ankles for business special interests. I guess waste, fraud, and abuse doesn’t count when it’s going to tax breaks for businesses. They use to have a better word for all those shenanigans between gov’t and business - graft. Which is just an anachronistic term for being corrupt. The best and most obvious example of that is what takes place in Idaho.
Dazzeetrader11 on April 30 at 5:05 p.m.
One..your brain is poisoned. Time for this inept official to leave. Millions have been lost and he didn’t seem to notice. Article has nothing to do with conservatives..except in your silly brain. Likely the program wouldn’t exist if the conservatives had thier way. No program= no problem.
Kinda like Daley in Chicago. No rat counters= no rats. He actually ran on that program after he fired the counters.
This is the liberal giveaway prgram being abused by a union member.
pjc on April 30 at 5:16 p.m.
I am not at all against food stamps and assistance to the poor; however, this was a pretty boneheaded and out of touch response by this public official. Sounds like a pretty big lapse in judgment on several occassions.
USVetVoter on April 30 at 5:29 p.m.
This is just a mirror of the excact problem our entire nation is facing as we are falling down rapidly. The rampent fruad, waste and abuse of huge government programs and hand outs is what is fueling the demise of our great country. I am proud of the people who stood up and put a stop to this, but it needs to go much deeper and to make sure this type of thing NEVER can happen again! And what ever happened to the $6Million dollars this article speaks of, and this ever so mysterious “General Fund” of WA state…Just as the Fed Economy, the WA state economy is out of control with spending, on this issue of Social Programs as well as many, many more.
It is interesting that Rep. Miloscia(D)-Fed Way, opines the,”..Economic Services is the best-run agency in the state and was on track to be recognized nationally,”. He and Troy Hutson in my judgment would seem to be a suitable fit with the current Federal administration in the context of the nations situation in that case. I hope the waste and abuse does get stopped, my pennies these days are just not stretching that far and cannot afford to keep paying for this much longer.
Hcklbery on April 30 at 5:39 p.m.
“It seems clear from the television report that his position as a steward of our citizens’ valuable tax dollars has not imbued in him a sense of the serious nature of these documented offenses,” Republican state Sens. Mike Hewitt, Mike Carrell, Andy Hill and Jeff Baxter wrote to DSHS Secretary Susan Dreyfus on April 7.”
THE POT CALLING THE KETTLE BLACK.
de3 on April 30 at 6:24 p.m.
All stakeholders are entitled to good service, including the taxpayers who should be protected from fraud.
If he controlled fraud better, he would have had more money to hand to deserving poor people. Hutson did not seem to understand his job duties and that his job description includes controlling for fraud.
Smokie on April 30 at 6:54 p.m.
Yes, whenever you speak the truth (and forget to craft your message for those on the right who so easily jerk their knees) you will pay the price. Placating those in ignorance (Republicans) is the key to political survival these days. Unfortunately, it is killing our country.
greenlibertarian on April 30 at 8:26 p.m.
India’s got millions of well trained and educated accountants, I say just outsource the whole damn thing, much cheaper for the taxpayers.
Then send the poor that need really expensive operations to India for surgery at one third of what it costs here, even with patient travel costs. Sorry just can’t afford American doctors anymore, we’re broke you know.
State should start replacing its motorpool with vehicles from Tata Motors also of India, soon as their available in the US.
/sarcasm
Dazzeetrader11 on April 30 at 8:31 p.m.
Yes send them. Then we won’t have to fund them. They don’t pay tax anyway! Perhaps we could get the country going again. Unions wouldn’t settle for TATA’s though….
Not good enough for them.
DickAdams on April 30 at 10:11 p.m.
A scum bag is a scum bag no matter which party they belong too. Its like a few here no matter what it is, its the Republicans fault. If it is nail them to the cross and vice versa. I wouldn`t belong to either party. Both smell up the joint.