> they form because the culture is broken
Have you ever actually met many poor people? "Culture" isn't the problem, and they are some of the hardest working people in the country. They are also some of the nicest people I've ever met and by far the most generous.
If you want to actually fix the problem so welfare isn't necessary, fix the things that are currently denying them the opportunity to improving their situation such as the prison-industrial complex, racist crap like "redlining", various predatory business practices, and regressive taxes. Find ways to increase labor's power such as unions or guilds, with the goal of increasing both available jobs and job stability.
> Arguably it's the welfare money that significantly led to the culture breakdown
That is pure nonsense. Seriously, try actually living[1] below the poverty line for a while, or talk to people that have had to live through a lifetime of denied opportunities.
[1] Due to an unfortunate medical situation, I currently live on less than $1500/month.
A cursory examination of the level of violent crime (particularly against property holders) in states where there is little or no welfare state compared with those in which there is a pretty comprehensive welfare state would suggest this isn't a very good argument...
Then it's the culture that needs fixing, not the welfare.
>Arguably it's the welfare money that significantly led to the culture breakdown in the first place by destroying economic and social structure.
Germany, Sweden, Switzerland, Denmark, et al. have excellent welfare, but no "gangs" of that style. So it's not the welfare that causes that phenomena.
In contrast, most developing world hellholes have little to no welfare, and huge gangs, violence and destroyed economic structures issues.
In fact the "have the community provide for itself" is how you get support structures like the mafia, the cartels, etc, substituting a state that doesn't help its people.