May 07 2009

If I move to Massachusetts do I get a free car too?

Published by Karl at 9:48 pm under Bail outs

I won’t hold my breath.

Free cars for poor fuel road rage

Gov. Deval Patrick’s free wheels for welfare recipients program is revving up despite the stalled economy, as the keys to donated cars loaded with state-funded insurance, repairs and even AAA membership are handed out to get them to work.

But the program - fueled by a funding boost despite the state’s fiscal crash - allows those who end up back on welfare to keep the cars anyway.

The program, which is provided by the State Department of Transitional Assistance, gives out about 65 cars a year, said DTA Commissioner Julia Kehoe.

The state pays for the car’s insurance, inspection, excise tax, title, registration, repairs and a AAA membership for one year at a total cost of roughly $6,000 per car.

So where do the cars come from?

The program, which started in 2006, distributes cars donated by non-profit charities such as Good News Garage, a Lutheran charity, which also does the repair work on the car and bills the state.

Kehoe defended the program, saying the state breaks even by cutting welfare payments to the family - about $6,000 a year.

“If you look at the overall picture, this helps make sure people aren’t staying on cash assistance. It’s a relatively short payment for a long-term benefit,” Kehoe said.

So if the person has a job, they are off welfare, I think they mean.  Seems good, but there is a catch:

But Kehoe admitted about 20 percent of those who received a car ended up back on welfare, and while they lose the insurance and other benefits, they don’t have to return the car.

One would think that would be a given.

Applicants for cars must have a job or prove they could get one if they had the car in order to qualify. Once they have the wheels, they must send DTA their pay stubs to prove they are employed.

To get the cars, they must be unable to reach work by public transportation and have a clean driving record. The program is only available to families on welfare with children.

This is one of those stories that gives me mixed feelings. 

I think the program has some merit.  Surely there are worth families who could use this as the catalyst to go from dependency to independence.

I think a non profit organization doing this is a good thing.  I even would say that maybe the state waiving registration fees makes sense too.

But the state paying Insurance and all that seems to be stepping over the line for me.

Consider this:  Why not get insurance companies to donate a policy?    Why not get AAA to donate a membership?  And have local garages donate the repair work?

The businesses get a tax break for the donation, and the State saves its money.  How is that not better?  Are the people of Massachusetts up to the challenge or not?

This is where private charities, the communities and the local businesses would do better to step in than to have the state become a used car dealer.

Trackposted to The Pink Flamingo, Rosemary’s Thoughts, third world county, Allie is Wired, Right Voices, and The World According to Carl, thanks to Linkfest Haven Deluxe.

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