Ran across this article by Phil Lawler at Catholic Culture that details some of the dangers of blending Church/State programs. The article was published in 2009, but it is a must-read and very pertinent to the situation in the DOR. Here's a snippet:
The offices of Catholic Charities, at both the local and national levels, receive the lion's share of their funding from government programs. They have become agencies of the welfare bureaucracy. The agencies themselves are no longer truly acting for the Church, carrying out the corporate charity of the faithful. They are now wards of the state.
Catholic social teaching emphasizes the importance of public policies that support healthy family life; high tax rates place undue strain on families of modest means. Moreover the steady rise in tax rates, coupled with the constant expansion of government programs, dry up support for independent charitable ventures-- which invariably are more efficient than the government efforts. The dollars required for tax payments are no longer available to be donated to local civic organizations-- or, for that matter, to the support of the Church.
And this, too:
Mother Teresa of Calcutta never accepted government support for the many charitable ventures undertaken by her Missionaries of Charity. It's true that she was prudent enough to recognize the dangers of depending on state support. But she had another reason for her policy as well. She wanted to be certain that she and her sisters were motivated by nothing other than the love of God. She wanted no distractions: no elaborate schemes for social change, no ambitious plans for government partnerships.