Dear Neighbors,
I hope that you had a great Independence Day holiday and were able to spend time with loved ones reflecting on America and all that our nation stands for.
It’s been good to see so many of you around town at the community celebrations in our area this summer. If you see me out and about, please be sure to come up and say hello. It’d be great to chat with you about the things that are most important to you and your family.
Here’s a quick rundown of the latest from St. Paul.
More Fraud, Waste, and Abuse
Late last month, the non-partisan Office of the Legislative Auditor (OLA) released two reports detailing a shocking lack of oversight from the Walz Administration which led to hundreds of millions of tax dollars being lost to fraud.
The first report was related to the frontline worker pay program that was created in 2022.
You may recall, that this program set aside a $500 million pool of money for bonuses to be paid to frontline workers who worked in person during the pandemic. At the time, the understanding was that roughly 500,000 frontline workers, like nurses, would receive $1,000 bonuses as a thank-you for going above and beyond during the pandemic.
Instead, over 1 million applicants were approved to receive these bonuses—meaning that the checks came in at $487.45 instead of the expected $1,000.
The OLA report found that 40% of the approved payments were to people who were not eligible or whose eligibility could not be determined. This included fraudulent applications including many from people who were deceased long before this program opened. In addition, the Department of Revenue did not verify all applicants met the adjusted gross income requirements.
The second report was regarding the Minnesota Department of Education’s handling of the Feeding Our Future fraud case where at least $250 million in tax dollars was fraudulently obtained and stolen from programs intended to feed children.
The Feeding our Future case has been in the news again as federal prosecutors were able to secure convictions of a handful of fraudsters this summer.
The OLA report determined that the Department of Education’s action and inaction created opportunities for fraud in this program. More specifically, they:
- Failed to act on warning signs known to the department before the onset of the COVID-19 pandemic and before the alleged fraud.
- Did not effectively exercise their authority to hold Feeding Our Future accountable to program requirements.
- Were ill-prepared to respond to the issues it encountered with Feeding Our Future.
These reports confirm what many of us already know to be true, the Walz Administration did next to nothing to investigate and prevent some of the largest fraud scandals in Minnesota history.
The reports revealed multiple examples of a clear and blatant disregard for state policies and oversight measures that should have stopped these fraudsters in their tracks. Instead, the Walz Administration—whether through incompetence or laziness—failed to follow up on legitimate warning signs time and time again. You deserve better from Governor Walz and his administration, and this latest failure proves again that balance is badly needed in St. Paul.
New Democrat Taxes Take Effect
The cost of some deliveries increased on July 1st as a handful of new laws and taxes went into effect. The new delivery tax was enacted last year and applies to most purchases over $100, including essentials such as diapers, clothing, pets, office supplies, and other household items.
This tax is expected to cost Minnesotans $189 million and is just one of several new or increased taxes and fees that Democrats approved, despite a $18 billion budget surplus, to pay for their out-of-control spending spree.
Staying in Touch
A reminder that these email newsletters will be put on pause beginning on July 19th and will pick up again after the November election. Despite this, please know that my work for you, your family, and our communities does not end. So please do not hesitate to contact me to share any questions, comments, or concerns you may have.
You can contact me by phone at either 651-296-4929 or 701-361-1909. I can also be reached via email at rep.jeff.backer@house.mn.gov.
Have a great day and let me know if I can help you in any way,
Jeff