Hello from the State Capitol,
The Minnesota House has taken decisive action to confront fraud by advancing legislation to establish an independent Office of the Inspector General (OIG).
Under this proposal, the OIG would have broad authority to investigate state agencies, grant recipients, and contractors. It would be empowered to issue subpoenas and, with court approval, freeze or halt the flow of taxpayer dollars when fraud is suspected.
Put plainly, the OIG would become the state’s central force in rooting out fraud and exposing criminal misuse of public funds. While it would lead investigations and gather evidence, any criminal violations would be referred to the appropriate law enforcement agencies for prosecution.
About 15 states already operate statewide Offices of Inspector General with sweeping oversight of executive agencies, offices specifically designed to uncover waste, fraud, and abuse and hold bad actors accountable.
This is a long-overdue reform. Estimates suggest as much as $9 billion has been lost to fraud in Minnesota, with the Walz administration taking next to no action over the past eight years to stop it or bring those responsible to justice. Ending this systemic failure is a top legislative priority, and creating a strong, independent OIG is a critical step toward restoring accountability and protecting taxpayer dollars.
WALZ ADMINISTRATION CONTINUES TO DUCK FRAUD ACCOUNTABILITY BY DEMOTING DHS COMMISSIONER
In a blatant political maneuver, Governor Tim Walz yanked his Department of Human Services commissioner nominee at the last minute to dodge yet another round of damaging fraud scrutiny.
Shireen Gandhi was set to face confirmation hearings in the Minnesota Senate. Instead, just one day before she was expected to answer tough questions, Walz quietly replaced her with John Connolly—shielding her from the accountability she had clearly deserved. Rather than being held responsible, Gandhi was simply reassigned to a deputy commissioner role, where she will now oversee Medicaid programs already plagued by fraud.
From the outset, Gandhi’s appointment raised serious concerns. She spent years inside DHS, including serving as Chief Compliance Officer, while an estimated $9 billion in taxpayer funds was lost to fraud. She also served as interim commissioner when the nonpartisan Office of the Legislative Auditor exposed major misconduct within the Behavioral Health Administration, including gross mismanagement and a confirmed cover-up involving fabricated and backdated records.
This is part of a troubling pattern. Time and again, the Walz administration has prioritized political damage control over real accountability. Even as a sweeping fraud crisis has spread across state government, not a single official has been fired. It’s such a slap in the face to the taxpayers of Minnesota who deserve so much better.
SCHOOL SAFETY PROPOSAL FAILS TO GAIN BIPARTISAN SUPPORT
House Republicans attempted to provide flexible school safety funding for schools across Minnesota this week, but the measure failed on a tie vote after every House Democrat refused to support it.
The language would have provided additional safe schools aid that schools could use to address the specific needs in their local district, including school resource officers, building security, violence prevention, mental health staff support, emergency communications, and other local needs.
This is a plan that should have been noncontroversial for all sides. Our schools are facing school safety challenges, and this measure would have given schools flexible resources to address their needs.
GOVERNOR SIGNS PAYMENT TRANSPARENCY ACT INTO LAW
When a Minnesota subcontractor finishes their work on a public project, they shouldn’t have to guess when, or whether, they’ll be paid. My Payment Transparency Act is designed to fix that problem.
This new law increases payment transparency on public construction projects for everyone on the job, and when subcontractors aren’t being paid on time, it gives them the information they need to use existing laws - like the Prompt Payment Act - to change that.
If a subcontractor asks for payment information in writing, the public owner has 7 days to share the general contractor’s pay application and when payment was made - at no cost to the subcontractor. This way everyone on the job knows what’s been paid for, and when they should get paid.
If the public owner has a website, they will put contact information on it, and if the owner already has a system that provides this information, they can ask the subcontractor to use it.
In the end, this law helps the painter, the electrician, the concrete subcontractor and other small Minnesota businesses who have already finished the public job and are carrying payroll while they wait for payment.