Hello from the State Capitol,
The Minnesota House took a major step towards curbing fraud in this state by approving legislation that establishes an Office of the Inspector General (OIG). Under this bill, the independent OIG would be responsible for investigating state agencies, grant recipients, and contractors. It will have subpoena power and the authority to freeze or stop distribution of funds under court order.
Maybe better said, the OIG would have primary jurisdiction over fraud and related criminal conduct involving public funds. The office would have the ability to subpoena witnesses and conduct investigations, but it must refer suspected criminal activity to appropriate law enforcement entities.
Roughly 15 U.S. states have a statewide Office of Inspector General with broad oversight over executive agencies. These offices are typically responsible for investigating waste, fraud, and abuse in state government.
Honestly, this is a very big deal. We have lost an estimated $9 billion through fraud in this state, and the administration has done next to nothing to combat it much less hold anyone accountable. Ending the fraud epidemic that has consumed state government is one of my top legislative priorities, and getting this OIG bill signed into law will go a long way towards preventing fraud in the future.
WALZ ADMINISTRATION CONTINUES TO DUCK FRAUD ACCOUNTABILITY BY DEMOTING DHS COMMISSIONER
Unbelievably, Governor Walz has pulled the plug on his Department of Human Services commissioner to avoid another round of negative fraud news stories.
This week, Commissioner Shireen Gandhi was supposed to go before the Minnesota Senate for confirmation hearings. Instead, one day before the hearings were to begin, he appointed John Connolly as the new head of DHS. Worse, he allowed Gandhi to maintain employment as deputy commissioner to oversee Medicaid programming in this state, which, of course, have been plagued by fraud.
Gandhi’s initial appointment to lead DHS was a shock to many, as she was previously DHS’s Chief Compliance Officer and had been in the department for years while at least $9 billion had been swindled from state taxpayers. She was interim commissioner when the nonpartisan Office of the Legislative Auditor (OLA) audited the Behavioral Health Administration - which is part of DHS – and found that state employees not only mismanaged money but also participated in a cover up by fabricating documents to cover their tracks.
And now, she’ll get to keep her six-figure job and her state benefits without any further scrutiny.
Once again, the Walz administration is purposely ducking accountability in this fraud epidemic he has allowed to spread across state government. To date, not one person has lost their job due to their negligence or incompetence as this fraud scandal has unfolded. That is just shameful.
FAIR COMPENSATION FOR ACTIVE-DUTY NATIONAL GUARD MEMBERS
This week, the Minnesota House unanimously approved legislation that increases the pay rates for both commissioned officers and enlisted members of the National Guard, who are participating in state active service. This bill is just common sense. When a National Guard member is called up, he or she is forced to leave their family and leave their job to serve our interests. They should not suffer financially for putting their lives on hold for us.
EXPANDING VETERANS’ CEMETERY BURIAL ELIGIBILITY
The House also unanimously approved a bill that would make honorably discharged members of the National Guard or another reserve component of the armed forces eligible to be buried in a state veteran cemetery for a fee. Expanding burial eligibility honors their commitment to our country, and it also enacts a fair structure to responsibly manage these services for the future. It’s worth remembering that certain veterans and active-duty personnel receive cost-free interment in veterans’ cemeteries.
BILL TO INCREASE SCHOOL FUNDING WITHOUT RAISING TAXES PASSES HOUSE
Legislation to strengthen long-term funding for our schools without increasing taxes was approved in the Minnesota House. The bill updates how Minnesota’s permanent school fund is managed and distributed, with the goal of providing more consistent and sustainable funding to school districts across the state.
HF3900 seeks to increase support for classrooms using existing resources rather than new taxes by adjusting how earnings from the fund are calculated and distributed. The bill proposes a constitutional amendment to help ensure the fund continues to be managed in a way that balances current needs with long-term stability.
The legislation now heads to the Senate for consideration.