Welfare Payments

Narrator: Under the Department of Social Services, the welfare arm of DSS handles more than $700 million a year. But the county grand jury is saying that conservatively, 20% to 30% of welfare cases involve overpayments to the tune of $70 million annually.

Grand Jury Man 1: The unofficial but widely reported slogan of the organization must no longer be "When in doubt, give it out." We recommend instead new policies which will lead to "When in doubt, check it out."

Narrator: The grand jury also found fault with management, saying it discouraged those on the inside not to do or report anything that might have been fraudulent. That, however, was directly disputed in a news conference across town by the director of Social Services, Jake Jacobson.

Jacobson: I think my reputation in this county is of being very hard-nosed on ethics and fraud thing is well known. I don't know where they come up with that. And again they never interviewed me or talked to me regarding that issue.

Narrator: Jacobson cited recent changes in an attempt to tighten control. But the grand jury labeled that just a band-aid approach to a problem which has lasted for years.

Grand Jury Man 2: They should have been doing real management over a lot of years and not just rushing out with a lot of task forces to do the same thing that they have done over the past twenty years.

Narrator: The grand jury report did not call for Jacobson's removal saying even if someone new in place the system would still be at fault. The report now goes to the county board of supervisors, which will have 60 days to respond.

Bob Lawrence, Ten News.

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