"Imagine if you will, a "for profit" interest contracting for the care of indigent, poor, hungry Michigan citizens.  They would agree to operate on a fixed amount.  Anything left over after providing the minimums established would belong to the contracting entity. The needy would be cared for by "professionals."

    "THEY WOULD STARVE PEOPLE!!"

Would they?  What if the minimum care was not established for the needy?  What if the operation did not meet the standards?  It would cease to be able to contract.  Instead, what if they decided it would be advantageous to instead of providing broad based "welfare,"  to instead provide a means for the needy to provide a better life for themselves?  It would save the "company" money, and the remaining pot would be greater.  The next contract could be negotiated perhaps at a lower level, and at a lower cost to Michigan taxpayers.  Result oriented operations work.

This is hardly a cure all but along the lines of anything that is truly market based, it offers a possible solution to a perpetually failing process.  It might address the reasons people are poor.  The possibility that the brightest entrepeneurial minds would be at work solving our states greatest problems is certainly one to consider as a potential.  Profit is exceptionally motivational, and finds solutions in nearly ANY situation.  Profit seekers would benefit richly by creating wealth for all of us, whereas the current set of hands managing our down trodden is dependent on them staying that way."

Real motivation would be to get folks off the rolls, because it would mean more in the pocket of the providing firm.  They might provide job training that is realistic and actually provides work skills that can be used.  Perhaps with a 'workfare' element that pays the contracting firm back in other ways as well.  EVERYBODY who receives benefits could give back in some way.

More so than is happening now.

Concern on whether or not the firm would be cutting folks off unnecessarily, could be answered with a review designed to look  at particular metrics associated with the process.  
BILLIONS could be saved, and more of Michigan's needy would be doing productive work.