Legislative Update
Greetings,
Thank you for your patience as I am running late compiling the newsletter this week. In addition, my newsletter for next week will likely run late as we will be returning from the first of five to six Capital Investment (Bonding) tours across the State of Minnesota. So, I look forward to sharing a summary of our trip next week.
Fraud
While we are still laser focused on protecting students, teachers, and staff; providing mental health care; and punishing criminals; another new, very large-scale case of fraud appears in our headlines. When will it end?
As you know, two weeks ago, the House Fraud Committee received news that the federal government is conducting an audit of Minnesota Medicaid autism therapy services and would potentially expand its investigation to consider our serious fraud issues.
This is good news, since a new KARE11 investigation recently found that for more than a year, the Minnesota Department of Human Services (DHS) ignored repeated warnings from Hennepin Health, a county-run Managed Care Organization, and other county officials about fraud in the Housing Stabilization Services program.
The program, which ballooned to more than $100 million annually, was plagued by bribes, falsified records, and even billing for clients who had already died. Despite receiving credible reports dating back nearly two years, DHS continued making payments while vulnerable Minnesotans went without help. Watch the report here.
We also learned that when a vulnerable Minnesotan contacted DHS about assistance he was supposed to be receiving, he was told to ‘do it himself.’ Here is the KSTP story.
On Wednesday, the House Fraud Prevention and State Agency Oversight Policy Committee met to discuss fraud within Housing Stabilization Services (HSS) and Integrated Community Supports (ICS). Eric Grumdahl, Assistant Commissioner of Homelessness & Housing Supports, was scheduled to speak during the hearing. But just hours before it began, the committee was informed that Mr. Grumdahl was no longer in his role as Deputy Commissioner. Seriously.
Talk about going to any length to avoid accountability. For reference, note that the Minnesota Department of Education oversaw at least $300 million – and it could be closer to $500 million – fraudulently stolen through the Feeding Our Future scheme, and to our knowledge not one person lost their job. But just one day before the committee is scheduled to ask pointed questions of someone from DHS, he is conveniently removed from his post.
Just this week, federal prosecutors announced charges against eight individuals accused of fraud in Minnesota’s Housing Stabilization Services (HSS) program. Working through Brilliant Minds, Faladcare, Leo Human Services, and Liberty Plus, the defendants allegedly billed for services that were never provided, submitting fake records, inflating hours, and even billing after clients had died. In total, these providers received an estimated $8.4 million in program dollars. Instead of helping seniors, people with disabilities, and Minnesotans in recovery find stable housing, these individuals enriched themselves with luxury cars, overseas investments, and personal expenses.
The New Waseca Chamber of Commerce Location
 Last Friday we enjoyed ‘Coffee with Tom’ at the new location for the Waseca Chamber of Commerce where I was honored to share the stage with Senator John Jasinski. As you see, we had very strong attendance and lively conversation! Thank You to our Waseca Chamber of Commerce team led by President Mikhail Rostislavovich, Executive Director Robin Dulas, and Executive Assistant Kristie Biehn. Please see the Coffee with Tom October schedule in the very last paragraph below.
Visiting Lake Marion Elementary School - Lakeville
On Saturday, I had the opportunity to tour the Lake Marion Elementary school in Lakeville where the citizens passed a bond to invest in the security of their students by hardening their schools with a nine-layer defense system which is virtually invisible to any parent or visitor touring the school. The system, which is installed in each Lakeville school, was funded by a bonding initiative which was passed over five years ago and installed during the COVID era. Much like feeling secure in an airport, this system demonstrates that we can protect our children, teachers, and staff while enabling rapid access to the perpetrator(s) by first responders.
Great River Energy HQ
On Monday, I visited the Great River Energy headquarters in Maple Grove, MN. Our very own Steele-Waseca Cooperative is a member of the greater Great River team of member-owner distribution cooperatives. One key message came through loud and clear; we can work towards being carbon-free in Minnesota by 2040, but no one has figured out how achieve the last 10 percent while still making electricity safe, reliable, and affordable. As a member of the Energy committee, I share these same concerns! Thus, I am working on legislation to ensure we all understand how the carbon-free goals can be achieved safely and affordably. We cannot afford to take unnecessary risks with the lives of our citizens.
Round Table Discussion Hosted by ARRM
On Tuesday, Representatives Keith Allen, Erica Schwartz, Luke Frederick and I attended a very informative round table type of discussion hosted by the Association of Residential Resources in Minnesota (ARRM). ARRM represents and advocates for Home and Community-based healthcare services which certainly includes the very important services provided to our citizens of greater Minnesota. Representative Frederick is the only one of us who is a member of the Human Services committee, so this opportunity greatly educated all of us about the services provided and the challenges created during our recent budget negotiations. As we all knew, balancing our budget by reducing spending comes at a cost, so we will be relooking at the implications of these recent budget-cutting decisions potentially involving our most vulnerable Minnesotans. Unlike the housing fraud mentioned above, I feel much more confident that we can prevent fraud in disability waiver services arena.
Well, I could keep on going, but I think I will save Wednesday and Thursdays meetings and updates for next week.
Coffee with Tom
In addition, please feel free to join me for Coffee with Tom at the Owatonna Chamber of Commerce on October 3rd at the Owatonna Chamber of Commerce from 12:00pm-1:00pm. Senator John Jasinski is currently scheduled to join me at this event. Then, on October 19th (the third Friday in October), I will be back at the Waseca Chamber of Commerce from 12:00pm-1:00pm. As a reminder, the Waseca Chamber of Commerce is now located in the Suburban Furniture building, 105 22nd Ave NE, Suite A, Waseca, MN 56093. We would love to see you there!
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