Strip club ATMs for welfare? California says no

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. The Los Angeles Times reports that more than $ 12,000 designated for the Temporary Assistance for Needy Families (TANF) program, which is intended for welfare purposes, was withdrawn at various strip clubs across the state from 2007 to 2009. Sam's Hofbrau, Seventh Veil and Star Strip are just a few of the clubs under investigation by California's Department of Social Services.

Post resource: Strip club ATMs banned from TANF use in California by Personal Money Store

Strip club ATMs are welfare sinks

Less-than-responsible is an apt way to describe use of strip club ATMs for instant cash loans, which is why Schwarzenegger is prepared to terminate. The Times found that half of casinos and poker rooms in California really permit access to a quick TANF payday funds via ATM. Where TANF ATM locations should be located should be a rather common-sense problem, says Lizelda Lopez of California's Social Services department.

Strip club ATMs? Managers didn't know

Strip club managers who were willing to submit to interviews claim that they had no way of knowing that the strip club ATMs were welfare approved. The third-party machines were provided via a California state contract with the Quest ATM network, although as Star Strip manager Joey Mancini put it, no Quest sticker indicating welfare cash now status was affixed to his strip club's ATM. Mr. Mancini understandably feels that he has done no wrong due to his lack of professed knowledge, despite the fact that the Times found that $ 1,265 in recent TANF cash advance loans withdrawals had occurred in his club.

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

Find more details here:

Los Angeles Times

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