From Eric Dondero:

Seven years in office, and California Governor Arnold Schwarzenegger is just now uncovering a huge scam from the previous administration. In the late 1990s, Democrat Governor Gray Davis instituted a program that would allow welfare recipients to access "Fast Cash," out of ATMs. The ATMs included machines located at the States' numorous Indian-owned Casinos.

The money drawn from the accounts can be used for any purpose: Booze, Black Jack, Concert tickets, 24-hour Buffets, even tipping Cocktail waitresses. There is absolutely no accounting or oversight.

From the LA Times, June 24, "California welfare cards can be used in many casino ATMs":

The cards, provided by the Department of Social Services to help recipients feed and clothe their families, work in automated teller machines at 32 of 58 tribal casinos and 47 of 90 state-licensed poker rooms, the review found.

State officials said Wednesday they were working to determine how much money had been withdrawn from casino ATMs by people using the welfare debit cards.

Schwarzenegger reacts:

Gov. Arnold Schwarzenegger, who learned of the issue when asked to comment for this story, promised to take immediate action.

"We have instructed our vendors to prohibit these cards from being accepted at ATMs located in casinos and card rooms," Schwarzenegger spokesman Aaron McLear said Wednesday. "It is reprehensible that anyone would use taxpayer money for anything other than its intended purpose."

Fortunately, this strengthens his hand against Democrat lawmakers screaming about his proposed "drastic" budget cuts to welfare programs. Continuing:

Schwarzenegger had already threatened to eliminate the state welfare program in his May budget proposal, and that was before he and his Republican allies in the Legislature knew that the cash could be accessed by people strolling from poker games to blackjack tables.

"In a time when we have a $19-billion deficit, and we're taking a serious look at the future of many safety-net programs, it's appalling to think that welfare beneficiaries can use their cards in a casino," said Seth Unger, spokesman for the Assembly Republican Caucus.

Meanwhile, Republican for Governor Meg Whitman has made cutting waste, fraud and abuse in California's massive welfare budget a key campaign plank. Also from the LA Times, May 17:

Whitman insisted that the state budget could be brought under control by targeting "waste, fraud and abuse" -- as well as making cuts to social services.

The State currently suffers from a $19.1 Billion deficit.