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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsKansas Welfare Bill Would Cut Into Benefits With ATM Fees
But the benefits are intended to subsidize basic living expenses. State Senator Oletha Faust-Goudeau, a Democrat who represents the Wichita area, told the Wichita Eagle that some of her constituents rely on welfare benefits to help cover rent, a large, lump-sum cost that for people without bank accounts usually needs to be made in cash.
Under the new rules, if someone receiving benefits plans to use her money to make a $600 rent payment, shell need to start withdrawing money and setting it aside 24 days in advance.
Actually, shell need to start even earlier than that.
Thats because Kansass debit cards come with a $1 fee for every ATM withdrawal. So over 24 days, this hypothetical woman would lose $24 dollars in fees; shed need to start one day earlier to make her rent payment.
And even that precaution would leave her coming up short. The Kansas cards charge $1, and the bank ATM usually adds on another surcharge fee. According to the GAO, the average ATM withdrawal surcharge was $2.10 in 2012. That lowers the real maximum withdrawal to $21.90 per day. At that rate, a person receiving benefits will need to make a withdrawal on 28 days per month (no margin of error in February) to set aside enough to cover rent.
http://fivethirtyeight.com/datalab/kansas-welfare-bill-would-cut-into-benefits-with-atm-fees/
daleanime
(17,796 posts)for anything else during that time.
Recursion
(56,582 posts)The obsession people have with punishing the poor is mind-boggling.
delrem
(9,688 posts)The most denied, yet also the most universal, prejudice that exists in human politics.
shenmue
(38,506 posts)JimDandy
(7,318 posts)or other big bills with no charge other than the money order fee. I think it might take 2 money orders (with a fee for each) to pay a $600 rent bill, but still, that's more doable than trying to get to an ATM machine 28 days in a row to pay rent.
I think the idiot woman who sponsor the amendment reducing the proposed withdrawal amount from $60 to $25 was more interested in the government tracking TANF recipient's purchases, because they aren't charging for point of sale transactions (which track purchases made with the EBT cards--including money orders).
Will it be the state or the debit card contractor that gets the huge windfall in interest when all that money sits there unable to be pulled out except $25 cash at a time?
This unfair burden on the poor need to gets reversed. I hope Kansas EBT recipients, landlords and non-profits will petition the governor to not sign this bill into law.
okaawhatever
(9,469 posts)dsc
(52,170 posts)JimDandy
(7,318 posts)available at the customer service counters where they sell money orders. Therefore customers should be able to just swipe their EBT cards to purchase them right?
okaawhatever
(9,469 posts)themselves or to a friend.
JimDandy
(7,318 posts)and cash returns at point of sale machines are not prohibited. The $25 limit affects just cash withdrawals at ATMs.
jaysunb
(11,856 posts)but this thing about Kansas really has me scratching my head and asking, "who in hell ARE these people."
After days of hearing about this insane and stupid legislation designed to further cripple poor people, I decided to take a look at their demographics to try and figure out if what's happening there is just more racism and a new found way to punish people who may very well be of color, and poor to boot. (the regular motivation)
Well (in my best Gomer Pyle voice) surprise, surprise, surprise ! Turns out Kansas is almost 85% white and less than 6% black. There are less than 3 million people statewide (about the number of folks that live on my street. LOL) and they live in one of the least diverse states in America. So what would have prompted it's legislators and elected officials to always seem to spend time screwing the populace ? Surely, these people either know someone or are related to someone receiving public assistance. Is it possible that some of the very ones effected by this cruelty voted and helped elect these same officials and representatives ?
Maybe I'm missing something, or there's really something wrong in Kansas.
starroute
(12,977 posts)Since ATM machines typically only pay out in twenties.
On edit: Though thinking about it, the person wouldn't get $20 less a fee. They'd get the full $20 but the fees would come out of their balance. Still, if they withdrew $20 every day -- as they might have to for bus fares or other small change items -- they'd be losing nearly $100 in the course of the month.
BeanMusical
(4,389 posts)WillowTree
(5,325 posts)Recursion
(56,582 posts)I do think part of this is a push to get more recipients "on the grid", but the problem is that The Grid for the most part doesn't want them.
okaawhatever
(9,469 posts)balance? $10-15 bucks per month.
progree
(10,927 posts)[font color = "gray", size = 1]{sarcasm thingy}[/font]
Kablooie
(18,644 posts)more welfare for the rich!
Boy! That's rich!
daredtowork
(3,732 posts)The idea may be also to literally chase poor people out of the inhospitable State so other resources won't have to be spent on them.
demtenjeep
(31,997 posts)Michael ODonnell is a sniveling little Koch sucker
AZ Progressive
(3,411 posts)Sadistic fuckers can't have enough hurting the weak. They might justify it saying that the poor are "eternally damned" as says Calvinist theology, but then that just shows just how evil religion can be.