Several states have had a kind of "workfare" where you had to do work for the state to get assistance. I agree with chain gangs on state projects, we provide them with a roof, meals and all the social interaction they can stand, they should be working to pay the citizens back for the support. As far as Unemployment goes, it is not a "freebie". I have paid much more over the years in unemployment insurance than I would ever be allowed to collect.
We also need to stop the handouts to multi-billion dollar corporations, why is the taxpayer subsidizing bulk mail that we don't want anyway. Corporate welfare costs us more than feeding kids when you add in all the subsidies, tax breaks and write offs.