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89 Calif. L. Rev. 569  

May, 2001


Legal Accountability in the Age of Privatized Welfare

Michele E. Gilman

 
When the federal welfare system was reformed in 1996, Congress gave States the option to contract out administration of their welfare pro-grams to private entities. Moreover, after enactment of the welfare reform, welfare recipients are expected to work to receive benefits. This means that front-line welfare office workers must engage in intensive interper-sonal counseling rather than simply confirm objective eligibility criteria and dispense checks. This results in vastly increased discretion for these front-line workers. When privatization is layered over this discretionary scheme, issues of accountability to program beneficiaries becomes signifi-cant. For over thirty years, it has been a tenet of public benefits law that due process protections attach to the government’s delivery of benefits. Yet when private entities deliver the same benefits, constitutional protec-tions may fall by the wayside. This article explores the implications of welfare privatization on welfare beneficiaries’ procedural rights. It ex-plains how the Supreme Court’s current state action doctrine may well insulate private welfare providers and their state contracting partners from constitutional claims. Accordingly, the Article also explores other poten-tial federal and state bases for enforcing accountability in welfare pro-grams in privatized jurisdictions, ranging from statutory to contractual to equitable claims. The Article concludes that the procedural rights of wel-fare recipients after welfare reform are greatly diminished

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