Welfare changed dramatically in the late 90's under Bill Clinton. The problem with the system is there isn't a way to run it "efficiently" like a business would, simply because it's the government. It'll always be subject to fraud, scams, etc, and there will always be people who are too lazy to better themselves & thus need a hand out.
When I was in college, I was on "welfare" at one point. I had financial aid from the university, and also applied for foodstamps. My friends (who were also on financial aid & thus could get food stamps as well) made fun of me, etc, because I had done so. However, it was really hard to afford school, books, and everything on the financial aid "allowance" that you get.
In the end, I got a 2nd job during college, and stopped getting the aid, because I thought it made more sense to work harder, and let my grades slip a little, than get used to a hand out.
So, I think there are problems with the system, but I haven't read anything that would compel me to vote for it to fix it. Perhaps requiring some education or training along with the hand outs would be the best way to go, as the more educated our society gets overall, the better off we all are.
We should have some sort of safety net. Richard Nixon wanted to change welfare to a "living wage" system. Basically the minimum that individuals and families could survive on would be set by the government. If you made less than that the government paid you the difference. That is probably the best idea I've heard.
In the L.D.S. Church we have a welfare system were you have a job to earn your money. Like you might clean a chapel or cut the lawn at the chapel. However small the job is it gives you a chance to feel like you worked for what you get. We also have the welfare recipient turn there bills into a financial clerk to be paid directly. That way there is no chance of the person letting there house payment go overdue to spend the money on something else. Food is purchased on account at a local store. No money is ever given to the person, but they have all there needs met. No one is allowed to stay on the system for very long but it is taken on a case by case basis. It is a very successful system.