Free Phone Frenzy -- Federal Lifeline Program Wildly Abused
The telephone Lifeline program is being abused like crazy. (That's the smell of your tax dollars burning -- from that little "Universal Service" charge at the bottom of your phone bill.)
Check out the girl with the purse jammed with BlackBerrys. You bought 'em for her:
The craziest was the bit in the video above about how 231,000 people in Maryland are thought to have these free cell phones. Well, free to them. Not free to the rest of us.
Congressman Tim Griffin posts on his site about his bill to yank Lifeline back to its original land-line provision:
My bill returns the Lifeline program back to its original structure by ending federal subsidies for free cell phone services. This growing government cell phone program is costing American consumers and taxpayers, and my bill puts an end to it.
Here's another video about the 1.25 BILLION-DOLLAR program: If you're like me, you're wondering which politicians' sweethearts these phone companies are.
Oh, well. It was a nice idea. Too bad it had to be abused.
Patrick at July 25, 2012 4:47 AM
The government should make it work for them. It may sound evil, but it could be beneficial.
Just stipulate that a person can get a phone and use. But they do not own it. The government owns it. So the government can then use it anyway they want. Track it, use information like call history. I bet the gov would find a whole bunch of good info from drug dealers to scofflaws.
Not certain, but I bet some legal precedent could be set that if some uses said phone in commission of a crime they have used federal property.
Or if person sells the phone, once again committing a crime, selling something not yours.
John Paulson at July 25, 2012 6:01 AM
"A national database to make it *impossible* for anyone to get more than one free phone".
Riiiigghhhtt. And how much money will it cost the Federal Government to create, implement, maintain and man that system? Probably just as much (if not more) than what we would be saving in fraud.
Ugh.
Feebie at July 25, 2012 6:19 AM
Simple enough to fix.
Only allow 1 phone per person - and 1 claim - per month.
The companies selling these will quickly get their crap in order. When they won't be reimbursed? You'd better believe they'd fix it themselves.
Unix-Jedi at July 25, 2012 7:54 AM
Yes, UJ, but why leave to the private sector what you could fuck up with Federal incompetence and a lucrative pension plan?
Feebie at July 25, 2012 7:56 AM
It's sad that a small number of shady people are abusing a program that helps the unemployed find work. Yes we should reform the program, and bring criminal charges those committing fraud.
I like Unix-Jedi's suggestion, and it sounds like that's what the government is doing. Creating a database to make sure people don't file multiple claims. It shouldn't cost too much to do either. The cost of information systems equipment, and software has been going down the past decade and continues to drop. Also it will only take a few techs to run a single database.
Allowing people to have cell phones instead of land lines is a good idea. Some people may have lost their homes, or be unable to make rent; and are forced to go couch surfing in order to have a roof over their heads. In this case subsidizing a landline phone so someone can find work isn't a practical solution.
Instead amend the statute to say that cases of fraud must be under a certain level (it's impossible to stop catch all fraud) or the funding for cell phone usage goes away. That would solve the problem either one way (effective controls) or another (no more funding).
Mike Hunter at July 25, 2012 11:22 AM
"Creating a database to make sure people don't file multiple claims. It shouldn't cost too much to do either. The cost of information systems equipment, and software has been going down the past decade and continues to drop."
Yes, but the cost of government IT project is going up. If this works out like most government IT projects, it will take ten years, cost $20B, and when it goes on line it will flag a bunch of innocent people, while the fraudsters will easily find ways around it.
Cousin Dave at July 25, 2012 11:51 AM
Insane. I don't have a cell phone. DH wouldn't have one if it wasn't provided through work. Yet our money gets to buy cells and minutes for other people? Fantastic.
I'm waiting for the government program that sends people on vacations who are poor. Because everyone deserves a vacation, right? It's discrimination that some people can't afford one!
Government should keep people from starving to death on the street. Period. The rest of it, you have a right to try for. Success is not a right.
momof4 at July 25, 2012 11:52 AM
"Yes, but the cost of government IT project is going up. If this works out like most government IT projects, it will take ten years, cost $20B, and when it goes on line it will flag a bunch of innocent people, while the fraudsters will easily find ways around it."
So do you have any solid numbers from an unbiased source to back up that claim? Or did you just pull it out of thin air? Even if you are correct the Feds could just contract the IT work out to a private firm.
"Insane. I don't have a cell phone. DH wouldn't have one if it wasn't provided through work. Yet our money gets to buy cells and minutes for other people? Fantastic."
Actually if you don't pay for cell phone service your money doesn't buy minutes or mobile phones for anyone. The program is funded by tacking on a small tax to cell phone bills. Maybe you should actually watch the report before commenting next time.
Mike Hunter at July 25, 2012 1:02 PM
Mike, see here for a report on the IRS Business Systems Modernization program. Its predecessor, the Tax Systems Modernization program going back to the early 1980s, was cancelled in 1998 after wasting $2.5 billion. By the time the Business Systems Modernization program completes, per the article, it will be about 11 years late, and I'm figuring $3-4B over budget. It's hard to come up with exact budget numbers because the IRS is using some of the money it collects in fines and judgements to fund some of the program outside of the Congressional budget process, which means that none of our elected representatives have any visibility into it.
(BTW, I've worked for the company that is the Business Systems Modernization prime contractor, and I don't have a high opinion of them.)
Cousin Dave at July 25, 2012 6:34 PM
Actually, Mike, I DO pay LifeLine money in my landline. If you want to argue paperwork crap and say only cell bill money goes to cell phones, feel free. But money is fungible and the government has never been shy about taking money meant for one thing and spending it on another. Ergo, every cent I do pay them has the possibility of ending up in this program. Even the social security taxes we pay get spent on things that aren't social security.
Unless of course, you have some kind of proof that there are 2 separate LifeLine programs who never mix a single dime. In which case, I would oppose the cell program on principal. No one on this earth deserves a cell phone paid for unwillingly by others. Period.
momof4 at July 25, 2012 7:10 PM
I agree that this abuse.
The one I heard about today that abuses the abusers I love Headline: Pro-gun group uses Chicago firearms buyback program to fund shooting camp for kids
We should find a way to find a condensed group of these phones and send the police to ask about the concentration.
Jim P. at July 25, 2012 8:32 PM
Cousin Dave:
Interesting. I asked because recently my state tried to privatize it's e-mail system. They had different companies bid on a contract, and partnered with a private firm. The whole thing turned into a fiasco. Long story short the firm charged the state a bunch of money, couldn't fulfill it's contractual obligations, and is now suing our state because state government pulled out of the deal due to the private firms incompetence.
So I guess it really depends. Idk it would be interesting to see a comprehensive study on the subject.
Mike Hunter at July 25, 2012 9:35 PM
momof4,
Free vacations? hard to imagine it getting to that point. OOPS, not so hard after all.
http://hpronline.org/world/e-u-vacationing-a-human-right/
OBQuiet at July 29, 2012 12:18 PM
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