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Hello from the State Capitol,
With hopes of finally getting a handle on the waste, fraud and abuse that has been taking place in Minnesota over the past six years, I am co-authoring legislation that would better protect taxpayer dollars.
Hundreds of millions of dollars, that we know about, have been stolen from state government and many of us have had enough. We need to put a process in place that recognizes we have a fraud problem and actually prevents criminals from gaining access to your money.
At least $610 million has been documented as lost due to fraudulent activity, and many think the total exceeds $1 billion. There are numerous proposals moving forward in House committees that address this out-of-control problem.
The first plan would establish a centralized Office of the Inspector General. It would be charged with the task of combatting fraud and abuse in state government. The bill requires agencies to halt payments when fraud is suspected and mandates the creation of a fraud reporting hotline.
Another proposal would mandate fraud reporting for state agencies and equip them with additional tools to identify and prevent fraudulent activities including mandatory site visits. This bill also emphasizes transparency and swift action to address fraud concerns.
A third bill establishes “fraud notes,” a groundbreaking tool to assess the susceptibility of proposed legislation to fraud. Similar to fiscal notes, fraud notes would provide lawmakers with an evaluation of potential fraud risks before enacting new programs or policies.
In addition, Minnesota House Republicans have sent a formal request to U.S. Attorney General Pam Bondi. The letter urges the Department of Justice to launch a fraud investigation in Minnesota.
Hopefully the Department of Justice is willing to help, because if we run into roadblocks on fraud prevention with Democrats and Governor Walz, we’re going to need the federal government to step in.
PAID FAMILY LEAVE PROGRAM WILL COST YOU EVEN MORE MONEY
Last session, a Democrat-led legislative majority and Governor Walz approved a paid family leave program (PFLP) that will guarantees Minnesota workers can take 12 weeks of paid family leave and 12 weeks of paid medical leave per year. It also guarantees that everyone who collects a check will pay for it.
This week we learned the cost of the program is going to rise. Paid for by employers and employees, low-income workers are expected to be hardest hit.
For comparison purposes, a person making $33,000 per year is already paying $986 in state income tax. The Paid Family Medical Leave tax will force him to pay another $290. That’s a nearly 30% increase your in his state tax obligations.
A person making $66,000 a year is currently paying $3,037 in state income tax, and will now pay another $581, for a 19% increase. Someone making a $99,000 salary already pays $5,281 and will watch another $871 disappear due to the PFML tax. That’s a 16.5% increase.
That’s real money for a program not even a quarter of the population is expected to use.
PFLP is scheduled to begin in January 2026.
LOCAL VISITORS
I was so honored to meet Alex and Kathryn Hein this week.
Thank you for meeting with me and sharing about your son Madden and the lives he helped save through organ donation. Blessed be his memory!
I also met with Becky Cronk who teaches FFA in St James. She brought along students from St James and Springfield.
I enjoyed meeting with them and hearing about their experience with FFA.
Eric L'Abbe and Andrea DeWar from the Teamsters Local 320 from Nobles and Martin County stopped by.
As did county commissioners from Nobles and Jackson County.
Have a good weekend,
Marj
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