Legislative Update
Working for Northern Minnesota
This week at the Capitol we continued working through committee hearings, reviewing agency proposals, and discussing the issues that matter most to the people of northern Minnesota. While this is not a budget-setting year at the Legislature, the recently released February Budget Forecast gives lawmakers an important look at the state’s financial outlook and helps guide the conversations we are having about policy, spending, and long-term priorities.
As the session moves forward, many of the discussions at the Capitol are focused on oversight of state programs, evaluating the impact of recent policies, and making sure taxpayer dollars are being used responsibly. I want to take some time to highlight several issues that have come up recently that are particularly important for our region.
Bemidji Day at the Capitol
Yesterday I had the opportunity to spend time with a great group of folks from back home who made the trip down for the 19th annual Bemidji Day at the Capitol. Nearly 40 community leaders from the Bemidji area, including members of the Bemidji City Council, Beltrami County Board, Bemidji School Board, and other local leaders, came to St. Paul to talk about the priorities and challenges facing northern Minnesota.
Events like this are incredibly valuable. Northern Minnesota has unique opportunities and challenges, and it is important that those voices are heard directly at the Capitol. When local leaders, business representatives, and community members come together to share their perspectives, it helps ensure that policy decisions made in St. Paul reflect the realities of our communities.
I appreciated the chance to visit with everyone and hear their thoughts on issues impacting Bemidji and the surrounding region. Having direct input from the people who live and work in our communities is critical to making informed decisions. Thank you to everyone who made the trip and took the time to advocate for northern Minnesota.

Addressing Concerns About J.W. Smith Elementary

I have been hearing from many families about the potential closure of J.W. Smith Elementary School in Bemidji.
Let me be clear from the start. The superintendent and school board are doing the best they can while facing difficult financial realities that are largely outside their control. No local board wants to consider closing a neighborhood school.
Districts like Bemidji are dealing with rising costs and new state requirements that were not sustainably funded long term. Over the past two years, schools have been required to absorb several new financial pressures, including:
• Summer unemployment insurance costs for school employees
• New statewide paid leave mandates
• Changes to compensatory aid that reduced funding for high-need students
• Reduced reimbursement for special education transportation
• And other unfunded requirements passed at the state level
For Bemidji Area Schools, these policies add up to well over $1 million per year in new financial pressure.
When the state shifts ongoing costs to local districts without stable funding, local leaders are left to make painful choices. That is the reality our community is confronting right now.
J.W. Smith serves students and families who rely on its programs and stability. The focus should not be on attacking local administrators who are working within the system they were given. The focus should be on ensuring state policy does not put districts in a position where closing schools becomes the only viable option.
While local schools are struggling to keep up with rising costs and new state mandates, the Minnesota Department of Education has continued to grow both its staff and its budget. That contrast is frustrating for many communities that are being asked to do more with less.
We need predictable funding, fewer unfunded mandates, and honest budgeting that prioritizes students over bureaucracy. I will continue working toward solutions that protect local schools, respect taxpayers, and give districts the stability they need to serve our kids well.
February Budget Forecast and Minnesota’s Fiscal Outlook
The state’s February Budget Forecast was recently released and provides an updated look at Minnesota’s financial outlook.
While the forecast shows a small short-term surplus, it also highlights a structural imbalance in the coming budget cycle. In other words, spending is projected to outpace revenue in the years ahead unless adjustments are made.
This is an important reminder that even when the numbers appear positive in the short term, the long-term picture still requires careful planning and responsible budgeting.
You can view the full February Forecast here: [Forecast Link]
As lawmakers work through the budget this session, our goal should be to focus on fiscal responsibility, prioritize essential services, and ensure taxpayer dollars are used wisely.
That is especially important when concerns continue to emerge about fraud and misuse in state-funded programs.
Questions Surrounding the Redacted Optum Report

Another issue receiving attention at the Capitol is the heavily redacted Optum report, which examined irregularities within Minnesota’s Medicaid system.
Unfortunately, the version of the report that has been released publicly contains so many redactions that at times it reads more like a classified government briefing than a report meant for lawmakers and taxpayers.
When taxpayer-funded programs are involved, we need transparency. Legislators need access to clear information in order to understand what happened, identify weaknesses in the system, and make the changes necessary to prevent problems from happening again.
No more smoke and mirrors to dodge accountability.
Ensuring accountability within state programs should not be a partisan issue. It is about protecting programs that many Minnesotans depend on and making sure public dollars are being used responsibly.
Ongoing Review of Potential NEMT Fraud
There are also ongoing concerns about potential fraud in Minnesota’s Non-Emergency Medical Transportation (NEMT) program.
NEMT is designed to help individuals enrolled in Medicaid access medical appointments when they do not have reliable transportation. It is an important benefit that helps ensure people can receive necessary healthcare services.
However, recent reports and investigations have raised questions about whether the system has been largely abused by providers through falsified billing practices and other irregularities.
Programs like NEMT exist to help Minnesotans. That's exactly why it's so important that we ensure these programs are administered properly and that taxpayer dollars are not being misused.
As we look ahead to difficult budget decisions, it is clear that Minnesota cannot afford waste, fraud, or abuse within government programs, especially given the long-term fiscal challenges outlined in the state’s budget forecast.
"...there are 71 open investigations into Non-Emergency Medical Transportation (NEMT) providers in the state."

Thank You for Staying Engaged
I remain committed to representing the interests of northern Minnesota and working toward practical solutions that strengthen our communities.
Whether it's supporting local schools, ensuring fiscal responsibility in the state budget, or protecting taxpayer dollars through better oversight, these issues all have real impacts on families here in our region.
As always, I appreciate hearing from constituents. If you have any questions, concerns, or ideas you would like to share, please don’t hesitate to reach out to me using the contact info below.
Have a great weekend and enjoy the warmer weather!
Sincerely,
Bidal