Scarnati: Philly Fraud Case Points to Need for Stronger Illegal Alien Laws

The arrest this week of 18 people in Philadelphia who were ripping off a public assistance program of more than half a million dollars emphasizes the need for legislation that would ensure that illegal aliens living in Pennsylvania do not receive public benefits, according to Sen. Joe Scarnati (R-Jefferson), who has sponsored such a bill.

Scarnati said that the Philadelphia’s District Attorney’s office, which is prosecuting the case, pointed to poor administration and a failure of supervision and oversight over the Low-Income Home Energy Assistance Program, which provides grants to help low-income residents meet their heating bills.

"Grants were awarded to people who used invalid Social Security numbers and fake addresses – meaning that tax dollars were stolen by people who were not eligible for benefits," Scarnati said. "Clearly, we need stronger laws and guidelines in place to stop this abuse of tax dollars."

The arrests of twelve Department of Public Welfare (DPW) employees on fraud charges this week was just the latest in a series of embarrassing revelations regarding lax oversight by the department leading to cases of fraud and wasted tax dollars.

A 2007 performance audit conducted by Auditor General Jack Wagner uncovered serious deficiencies in DPW’s administration of the LIHEAP program.

Another audit of DPW’s Medicaid program conducted in January of this year found errors in a shocking 14% of cases studied. In many of those cases DPW failed to even verify the citizenship or identity of the applicant before dispensing benefits to them.

"Clearly, DPW is either unable or unwilling to clean up their act on their own," said Scarnati. "That is why it is imperative that the House of Representatives pass Senate Bill 9 immediately."

Scarnati is sponsor of Senate Bill 9, which would ensure that illegal aliens living in Pennsylvania do not receive public benefits, such as Medicaid, welfare, and in-state college tuition.

The legislation would require anyone receiving public benefits in the Commonwealth to provide identification proving they are legal residents. In addition, individuals would be required to sign an affidavit stating they are a United States citizen, or an alien lawfully residing in this country.

Senate Bill 9 passed the senate with broad bipartisan support on April 1, 2009 by a vote of 41-9. It has been awaiting action in the House State Government Committee since that time.

Any applicant signing the affidavit stating that they are a legal alien would have their status verified by the Federal Systematic Alien Verification of Entitlement Programs (SAVE) operated by the United States Department of Homeland Security.

"These commonsense checks and balances would have prevented much of the fraud and abuse that occurred in Philadelphia and is probably happening throughout Pennsylvania because of lax oversight," Scarnati said. "At a time when hard-working Pennsylvanians are losing their jobs and struggling to make their mortgage payments, we cannot afford to provide benefits to those who entered this country illegally."

The Federation for Immigration Reform (FAIR) estimates the current local annual costs of illegal immigration amount to about $36 billion nationwide. In Pennsylvania, which has more than 100,000 illegal aliens, the current estimated cost is $285 million. That cost is expected to grow to $812 million by the year 2020.

"Illegal immigration drains public funds, creates unfair competition for jobs with American workers, and imposes unnecessary strains on services designed to provide assistance to hard-working citizens," Scarnati said. "My bill would ensure that Pennsylvania is taking the lead on the growing problem of illegal immigration by making it clear that we will not provide government benefits and services to those who enter this country illegally."

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