California says no to TANF funds from strip club ATMs

California is within the middle of a titanic budget crisis, and Gov. Arnold Schwarzenegger has taken it upon himself to pummel any source of wasted funds into submission – including strip club ATMs. From 2007 to 2009, $ 12,000 in TANF welfare funds were withdrawn from strip club ATMs across California, reports the Los Angeles Times. Sam’s Hofbrau, Seventh Veil and Star Strip are just a few of the clubs under investigation by California’s Department of Social Services.

Resource for this article: Strip club ATMs banned from TANF use in California by Personal Money Store

Strip club ATMs – Portrait of irresponsibility

It’s easy to visualize how strip club ATMs could be used in a less-than-responsible manner, considering that welfare recipients have families to take care of; Schwarzenegger feels this is just cause to terminate the source of supposedly “emergency money”. According to the Times, more than half of casinos and state-licensed poker rooms in California permit welfare recipients to access their quick TANF payday. Department of Social Services spokeswoman Lizelda Lopez said that “common sense” could be used to re-evaluate where emergency welfare cash advance funds should or should not be withdrawn.

Strip club managers ’shocked,’ were unaware of ATM usage

Not surprisingly, strip club owners in question – or at least those who would speak on the topic to the media – claimed to be unaware that their ATMs were TANF approved. The machines under the TANF agreement came third-party from the Quest ATM network, although the owners claimed the machines bore no clear markings that made their designation clear. Mr. Mancini understandably feels that he has done no wrong due to his lack of professed knowledge, although the Times found that $ 1,265 in recent TANF emergency loan withdrawals had occurred in his club.

Smile when you say that, Mr. Mancini. Gov. Schwarzenegger is watching.

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Los Angeles Times

latimesblogs.latimes.com/lanow/2010/06/welfare-cash-dispensed-at-strip-clubs.html