Aug. 27—Undaunted or unaware of the state auditor’s previous uncovering of substantial fraud in public-assistance benefit programs, the fleecing of taxpayers’ money has continued apace.
The latest evidence of this thievery came on Monday, when state Auditor Diana DiZoglio released the Bureau of Special Investigations (BSI) fiscal 2025 quarter-four report.
It’s the BSI’s charge to help the government work more efficiently through its investigations of fraud, abuse, and illegal acts involving public-assistance benefits throughout the commonwealth.
If the fourth quarter of the current and prior fiscal year are any indication, these scam detectors have more than enough on their plate.
In quarter four of fiscal 2025, BSI investigated a total of 1,153 cases. Of those, overpayment calculations were found in 143 cases, 12.4%, with identified fraud, to the tune of $4,814,380.
The breakdown and degree of fraud indicated that the greatest amount of theft occurred in the largest expenditure in the state budget.
MassHealth, the state Medicaid program, led the fraud parade with 79.2% of the bogus payments — $3,812,331.
The Supplemental Nutrition Assistance Program (SNAP) followed with 14.3% of the total ($690,138), with Personal Care Attendant (3%, $143,638), Department of Early Education & Care (2.8%, $134,526), Transitional Aid to Families with Dependent Children (0.5%, $23,179), and Emergency Aid to the Elderly, Disabled, and Children (0.2, $8,568) rounding out the total.
But don’t worry, our state fiscal watchdogs managed to claw back $127,634 — 0.03% — of that waste.
It’s frustrating to see that in the year since the auditor’s last fourth-quarter report, nothing has changed. In fact, it’s only gotten worse.
Of the 1,235 cases the BSI investigated in that quarter, they identified fraud in 176 of them — 14% — amounting to a total of $2.37 million in bogus assistance — less than half of that fiscal 2025 total.
In fiscal 2024 fourth quarter, the vast majority of that public-funds skimming occurred in SNAP, to the tune of $1.9 million — 80% of the bogus assistance.
The remainder of the fraud came courtesy of Medicaid ($245, 859), Transitional Aid to Families with Dependent Children ($138,082), Department of Early Education & Care ($19,264), and Emergency Aid to the Elderly, Disabled, and Children ($60,472).
While a different program claimed the dubious honor of being the most egregious offender, the amount of fraud in that program virtually mirrored the percentage of the fiscal 2025 fraud leader.
“When public benefits fraud takes place, it impacts the lives of everyday people across Massachusetts who rely on these programs and services to purchase food or access care,” said Auditor DiZoglio. “That’s why the work of our BSI examiners is crucial to help ensure these programs and services are operating efficiently and reliably for everyone who needs them.”
Unfortunately, these results call into question whether anyone or any entity really cares about the efficiency and integrity of these programs.
And as usual, it’s the Massachusetts taxpayers who unwittingly subsidize this abuse of their hard-earned money.
State program’s seed money creating more Gateway Cities’ housing
By now, we’re all aware of the costly state of the Massachusetts housing market.
The administration of Gov. Maura Healey and that of her predecessor have championed measures to break down the financial and zoning barriers holding back the construction of housing that working-class residents can afford.
For example, more than 750 accessory dwelling units (ADUs) have been approved by local authorities thanks to a statewide simplification of the permitting process. Also, renters now can’t be charged a broker’s fee unless they hire that broker’s services, substantially reducing upfront costs when moving.
And one of those housing creators, the Housing Development Incentive Program (HDIP), provides two tax incentives to developers to undertake substantial rehabilitation of properties for lease or sale as multiunit, market-rate housing, primarily in Gateway Cities.
Healey and Livable Communities Secretary Ed Augustus recently announced $15 million HDIP funding to help create 829 new homes in six Gateway Cities, including Fitchburg and Lowell.
Other cities receiving funds include Revere, Fall River, Haverhill, and Worcester.
“These HDIP awards are a powerful tool in helping our Gateway Cities create housing and revitalize our downtowns, neighborhoods and underutilized properties,” said Healey. “…These awards are helping communities build the housing they need, supporting local economies and ultimately making housing more affordable and attainable for everyone.”
Signed by Healey in October 2023, the annual HDIP program cap was raised to $30 million annually with a one-time increase of $57 million. This resulted in the administration awarding a total of $72 million to create 1,544 new housing units in Gateway Cities in 2024.
“HDIP is one of the most effective tools we have to spur market-rate housing development in Gateway Cities. The developments receiving awards today not only create more homes, they are also transformative — restoring pride and helping create the type of neighborhoods where people aspire to live,” said Augustus.
In Fitchburg, 533 Main Street, developed by the Tocci Group, will receive $1 million for 17 units of housing.
In Lowell, 484 Merrimack, developed by New Royal LLC; Patrick Tighe, will receive a $1.3 million award for 24 housing units.
Only by attacking the state’s housing crisis through a series of new laws and financial incentives can we ever hope to make serious inroads into this daunting problem.
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