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I have covered many legislative committee meetings in my time under the golden dome, but I have never seen a worse outing for a new cabinet secretary than I did last week for Carl Ayers, the new secretary of the Department of Human Services.
Ayers is only 23 days in, with his first day the same day as the start of the delayed School Clothing Allowance program on July 20. I have to wonder if he would have taken the job knowing he would be walking into a mess created by Gov. Patrick Morrisey
His first real brush with lawmakers came Tuesday when he testified before the Legislative Oversight Commission on Health and Human Resources Accountability about the School Clothing Allowance program, which normally has a nearly 30-day application period.
But this year, the program didn’t start as it usually does at the beginning of July, instead delayed until July 20 and closed on July 27 after the DoHS/Governor’s Office projected that the program would exceed last year’s price tag of $11.4 million if the application period wasn’t closed prior to the original deadline of Aug. 15.
As I’ve written about ad nauseum, the Governor’s Office said the delay in the School Clothing Allowance application was due to a review DoHS was doing of all programs funded through the state’s Temporary Assistance for Needy Families program. Morrisey alleged in May that there is a structural deficit in the program for this fiscal year - now sitting at $38 million - that will result in TANF carryover funds dwindling to zero in less than 13 months.
There has been much skepticism about exactly how big the structural deficit really is, how much the state’s share plays a role compared to the federal TANF block grant (which is $98.8 million once 10% is shaved off the top for the social services block grant) and whether this is truly an all-hands-on-deck emergency.
Morrisey has since announced that all TANF-funded programs will be fully funded through the end of the fiscal year and he will seek a supplemental appropriation from the Legislature at the earliest opportunity. But at this point, those providers who received TANF dollars remain concerned their funding could be stopped at any time.
During the LOCHHRA meeting, Co-Chairman Evan Worrell reminded Ayers that it was the Governor’s Office that asked for $177 million in spending authority for the TANF line item and that any budgetary issues with TANF should have been raised during the legislative session earlier this year.
"When that was brought to the governor’s attention, the governor said, this is something that we need to raise to the Legislature. And we need to work together to figure out how we’re going to fix the structural imbalance," Ayers said.
"The governor requested $177 million in the budget this fiscal year for TANF, and the Legislature approved it. Here, go spend it. Spend up to $177 million," said Worrell, R-Cabell, who also chairs the House Health and Human Resources Committee. "We have no say in any of those funds or monies that are being spent in TANF, but yet I consistently hear that you want to work with us, and I know you just walked in the door, but we don’t have anything to do with this."
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As I and my colleagues have pointed out, the word "fraud" was never once said or whispered between May, when Morrisey announced the structural deficit, and Aug. 3, when the Governor’s Office issued a lengthy statement on TANF and the delayed School Clothing Allowance.
That changed the next day when Morrisey began raising a stink about approximately 50% of School Clothing Allowance dollars being taken off EBT cards at ATMs, something that has been allowed since 2022.
"I want the money for school clothes, not for beer or cigarettes," Morrisey said on Aug. 4 without presenting any evidence that was happening.
Ayers also did not present evidence that cash from School Clothing Allowance EBT funds was going to buy beer or cigarettes. What he did present evidence of was point of sale (POS) purchases using School Clothing Allowance funds at convenience stores (10.5%), grocery stores (5.5%), hotels or other miscellaneous retailers (2%) and alcohol, tobacco, cannabis and gaming locations (less than 1%).
However, when LOCHHRA members dove into this with Ayer, the issue became more complicated. West Virginia uses EBT cards for WV WORKS, the main TANF monthly cash benefit, child support payments and School Clothing Allowance. You don't have to be a recipient of welfare to apply for and receive an EBT card for the School Clothing Allowance as long as you qualify, but if you already receive funding for the other programs via an EBT card, then the School Clothing Allowance gets loaded onto the card you have.
When asked, Ayers told commission members that when School Clothing Allowance funds are loaded onto EBT cards, the first $200 spent through the EBT cards, regardless of what the recipient thinks the money is for, is considered School Clothing Allowance dollars. Why the holder of the EBT card is supposed to know that, I have no idea. But because of this, that is the data DoHS is using to claim that less than 1% of School Clothing Allowance EBT expenditures are at alcohol, tobacco, cannabis and gaming locations.
I’m an investigative reporter, but if that was my evidence for a news story, my good editors wouldn’t let that make it to print. It didn’t pass the smell test for LOCHHRA members either. And it probably set Ayers back when it comes to earning the trust of lawmakers.
"All I’m saying is who loses here is the citizens of West Virginia that need the help the most, and that’s our kids," said state Sen. Vince Deeds, R-Greenbrier, to Ayers. "I know that you stepped right into this. It started on your first day. And so, you do need a full measure of grace. You need a lot of prayers, too, because this is one of those issues that we will not back off on. The Legislature does not carry the weight on this. It’s the Governor’s Office that carries the weight on this, 100%."