Lottery Prizes May Factor Into Welfare Rules

LANSING (WWJ/AP) – Lottery and other gambling winnings would factor into eligibility for welfare assistance under legislation approved Tuesday by the Republican-led Michigan House.

The main bill in the package, approved 67-39, also would put into state law a requirement for asset tests to help determine eligibility for food and cash assistance programs in the state. Some asset tests already are used in Michigan through state department policy.

The measures advance to the Republican-led Senate.

Lottery officials would be required to notify the state’s Department of Human Services about winners of $1,000 or more. That provision won overwhelming bipartisan support in the House.

But some Democrats are worried that putting asset test requirements into state law would make decisions about assistance eligibility too inflexible.

“It could ultimately affect thousands of children,” said Rep. Maureen Stapleton, D-Detroit.

Stapleton also questioned how the state could monitor casino and other gambling winnings not covered by the state lottery.

The legislation comes after a Bay County man last spring acknowledged he continued to use food stamps despite winning a $2 million lottery prize in 2010. State officials said at the time that lump sum payments weren’t counted when judging eligibility for food aid.

Rep. David Agema, R-Grandville, said the legislation is designed to make sure that people who are truly poor receive benefits while blocking eligibility for people who don’t need the help.

Welfare has been a recent hot topic in Michigan. Last August, the state removed about 30,000 college students from its food assistance program after enforcing federal guidelines. Then in September, Gov. Rick Snyder signed into law a stricter, four-year lifetime limit on cash welfare benefits. Lawmakers have also considered mandating drug tests for welfare applicants.

TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.

  • fed up

    The way things are going now with gas prices and the idiot governor taking tax out of pensions , we are all gonna need welfare THANKS A LOT YOU BOZO!!


    Well lets see I am retired from an auto co. i am on a pension after 30 yrs , and the idiot governor wants to tax my pension , but a lottery winner can still claim assistance ? but also if a person is able to find a job , he or she is cut off right , Really makes a lot of sense doesnt it …. NOT :(

  • $1M Lotto Winner Cut From Food Assistance « CBS Detroit

    […] Legislation in Lansing would require lottery and other gambling winnings to factor into eligibility for government food assistance programs. […]

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