County May Be Told to Spend Welfare Money

State lawmakers Thursday expressed concern that Los Angeles County is sitting on millions of dollars in unspent welfare funds and said they may set a deadline for the county to use the money or lose it.

Those officials fear that if the money--expected to reach $800 million over the next five years-- goes unspent, federal authorities might reduce future welfare expenditures to the state.

“It’s very embarrassing to realize that L.A. County has all this money, it’s ridiculous,” said state Sen. Teresa Hughes (D-Los Angeles). “I want to know how their plans are moving along. I don’t want to see that in five years, there’s still this money sitting there and nothing has flowed to the people who need it.”

County officials in November approved a five-year plan that would funnel $174 million annually for 46 support programs. But details have yet to be worked out and little of the money has been spent. County officials insist that they have aggressively pursued the best ways to utilize the funds.

In the last two years, the county amassed more than $83.1 million in surplus funds that can be used to provide supportive services for families in the welfare-to-work program. The surpluses have accumulated as people leave welfare rolls and less money is needed for cash payments. The county also was awarded federal funds for putting recipients into jobs.

The size of Los Angeles County’s welfare pot previously had drawn scrutiny from state and federal authorities. But officials acknowledged for the first time Thursday that they are considering imposing guidelines with serious consequences.

The issue was raised Wednesday at the confirmation hearing for California’s new director of social services, Rita Saenz. Hughes grilled Saenz about the welfare money stockpiled by Los Angeles and other counties, asserting that many welfare recipients could suffer for lack of services.

Saenz could not be reached for comment Thursday. A Social Services spokeswoman said that department is studying Los Angeles County’s welfare funds but said the county has broad spending leeway and it was uncertain how much authority the state could exert.

The county Board of Supervisors was scheduled today to consider one proposal to bring public health nurses into the homes of new mothers possibly as early as March.

Other programs are scheduled for board consideration in coming weeks and most parts of the plan will be ready for launch by July, county officials said.

“I don’t agree with the proposition that we’ve been too slow in putting together a plan,” said Steven J. Golightly, chief deputy director for the Department of Public Social Services.