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Dear Neighbor,
Housekeeping work continues at the Capitol as we put the pieces together to start the 2025 session in mid-January. Committees are now fully in place, and I am pleased to be serving as the Republican chair of the Agriculture Finance and Policy Committee. I also will serve committees related to energy and state government.
In other news, yet another non-partisan audit has revealed serious mismanagement and lost taxpayer revenue in Minnesota, highlighting the need for more state agency accountability and better accounting practices.
This time, a report issued Tuesday by the Minnesota Office of the Legislative Auditor indicates DHS did not comply with significant finance-related legal requirements, has not attempted to recover substantial overpayments totaling more than $40 million to Medical Assistance providers, and has not accurately reported its accounts receivable balance to Minnesota Management and Budget for inclusion in the state’s financial statements since 2019.
House Republican committee chairs are sending formal letters to all 25 state agency commissioners, requesting detailed information on department expenditures, potential areas for cost savings, how to increase efficiencies, and areas for budget reductions within their agencies.
This audit is just the latest in a series of reports revealing rampant fraud and waste in Minnesota departments and programs, from Feeding our Future to childcare assistance, frontline worker pay, and DHS and the Department of Education, costing Minnesota taxpayers hundreds of millions of dollars. News also broke earlier today regarding the FBI investigating autism centers for fraud.
Meanwhile, the state also recently issued a new economic forecast. It projects a $616 million surplus through the 2026-27 biennium – a decrease of $1.1 billion from previous estimates – and a significant future shortfall of more than $5 billion through the 2028-29 biennium.
An updated February forecast will serve as the official framework for the 2025 session as legislators work to craft a new two-year state budget before adjourning in late May.
Until next time, hope you stay warm during this cold spell and please keep in touch.
Sincerely,
Paul
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