|
Dear Neighbors,
Minnesota has been here before. When the Feeding our Future program first launched, the idea was noble; ensure children in need did not go hungry. Instead, it became the largest fraud case in state history, with more than $250 million stolen through fake invoices, falsified rosters, and rubber stamped approvals. And feeding our future is not an isolated story. Minnesota has a disturbing track record of handing out taxpayer money with minimal oversight - and only uncovering the fraud after the money is gone.
Now, the state is preparing to roll out Paid Family Medical Leave or (PFML) and the Sick and Safe Leave Time (ESST) mandate. Both sound compassionate on paper. But the reality is that these programs are built on the same shaky foundations that enabled past fraud. Unless lawmakers put the brakes on PFML before it begins, Minnesota could be staring down the next billion dollar scandal.
A system ripe for abuse:
The PFML program will move billions of taxpayer dollars every year. Employees will be able to claim partial wage replacement for up to 20 weeks of leave. To qualify, all they need is a doctor's note or certification of need. This is precisely the kind of documentation that can be fabricated, exaggerated, or bought.
We've already seen what happens when State agencies rely on self-reporting and trust without verification. During the pandemic, criminals use stolen identities to drain unemployment insurance. In feeding our future, state officials ignored red flags because the paperwork looked incomplete. PFML opens the door to exactly the same types of abuse:
-false medical claims for stress, back pain, or caregiving responsibilities.
-collusion with providers willing to sign off on non-existent conditions.
-double dipping, with people collecting PFML benefits while working off the books.
-identity theft, where fraudsters file claims using stolen social security numbers.
Meanwhile, the ESST mandate shifts programs onto employers. While not a state administered fund, ESST creates plenty of opportunities for abuse at the workplace level. Employees can simply call in sick or claim "safe time" without consequences, leaving businesses to cover wages and lost productivity. That's not fraud on the taxpayer, but it's fraud against Minnesota's jobs Creator many of whom are already struggling under high taxes and regulations.
The cost of getting it wrong:
Lawmakers say PFML will cost more than a billion dollars a year in benefits, funded by a new payroll tax. If even 10% of the claims are fraudulent, a conservative estimate given Minnesota track record, hundreds of millions could be lost annually. That's more than enough to erode trust, drive up payroll taxes further, and destabilize the very fund workers are counting on.
Worse, every dollar stolen through fraud is a dollar that does not go to a family with a legitimate need. The people who lose most are not just the taxpayers footing the bill, but also the honest Minnesotans who will find the program insolvent when they actually need it.
The bottom line:
Minnesota leaders claim PFML in ESST are about compassion and family values. But compassion without accountability is an invitation to corruption. Our state cannot afford another feeding our future.
If the legislature truly cares about helping families, it must either halt PFML before billions are lost or at a minimum delay the rollout until strong safeguards are written into law and funded. Anything less is reckless - and the taxpayers will once again be left holding the bag.
|
