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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

States and Privatization of Food Stamp Program

Companies still key to welfare fix, By Angela Mapes Turner, December 2, 2009, Fort Wayne Journal Gazette: “Indiana’s proposed fix to its welfare system includes handing the bulk of supervisory duties back to state employees. But those employees number only a third of what they did before the state’s failed attempt to privatize welfare processing, and the preliminary plan appears at odds with a recent federal caution against privatization. Documents obtained by The Journal Gazette outline the state’s hybrid plan to fix the system. The draft outline indicates Vanderburgh County – an early participant in privatization in 2007 and a squeaky wheel in bringing problems to light – might be first to launch a new system in January. According to the documents, Indiana’s plan continues to rely heavily on private, for-profit companies, despite a caution from the U.S. Department of Agriculture, which oversees the federally funded food stamp program, warning states against such contracts…”