Government aid doesn’t always go where it’s supposed to. Foster care agencies team up with companies to take disability and survivor benefits from abused and neglected children. States and their revenue consultants use illusory schemes to siphon Medicaid funds intended for children and the poor into general state coffers. Child support payments for foster children and families on public assistance are converted into government revenue. And the poverty industry keeps expanding, leaving us with nursing homes and juvenile detention centers that sedate residents to reduce costs and maximize profit, local governments buying nursing homes to take the facilities’ federal aid while the elderly languish with poor care, and counties hiring companies to mine the poor for additional funds in modern day debtor’s prisons.

In The Poverty Industry, Daniel L. Hatcher shows us how state governments and their private industry partners are profiting from the social safety net, turning America’s most vulnerable populations into sources of revenue.

Vermont's top fiscal officer says the state's General Fund took in $10.6 million more than expected last month, making it possible for the state to end the fiscal year with a surplus.  WAMC’s North Country Bureau Chief Pat Bradley reports… 

Administration Secretary Jeb Spaulding said general fund revenues were 6.3 percent ahead of expectations.

So far this fiscal year, general fund revenues are four-tenths of one percent ahead of expectations.

Spaulding says the results were largely because of strong corporate income tax filings.