Tuesday, May 25, 2010

Maryland keeps orphans' Social Security benefits

The Washington Examiner reports:
Public officials in Maryland often justify their excessive spending of other people's money by pretending to be champions of the poor and downtrodden. Don't fall for it. Maryland is just one of many states that apply for -- and keep -- Social Security benefits that legally belong to children in foster care.

This is happening to tens of thousands of foster kids nationwide, says Dr. Daniel Hatcher, associate professor of law at the University of Baltimore. Child welfare agencies regularly file for Social Security benefits that should go to orphaned or disabled foster kids, then pocket the money in their budgets, leaving their young charges with no financial resources when they leave the system at age 18.

Since Social Security benefits legally belong to the minor child, whoever receives the money has a fiduciary responsibility to spend it in the child's best interest. This is a broad standard, but padding bureaucratic budgets doesn't even come close.

Ninety percent of the Social Security Administration's "representative payees" are government agencies, even though they're supposed to be the least preferred custodians of foster children's benefits.


Great moments in Bismark's welfare state. You'll want to read the whole article.