KOZNICK SLAMS FRAUD IN FRONTLINE WORKER PROGRAM AS LONE VOICE OF CAUTION AGAINST FRAUD IN POORLY SET UP PROGRAM
ST. PAUL — The Office of the Legislative Auditor released a report yesterday showing serious noncompliance with program requirements, state law, and verification requirements in the Frontline Worker Pay Program, leading to another $200 million lost to fraud. Representative Jon Koznick, R-Lakeville, released the following statement regarding the report and SF2677, the bill that authorized the program:
"This Legislative Auditor’s report shows yet again another spending program that led to an incomprehensible amount of fraud. 290 dead people receiving bonus payments should be a wake-up call! I voted against this bill in 2022 because I was concerned about fairness and overspending, that the Administration wouldn't thoroughly vet applications, and that the program was set up for abuse - I was unfortunately correct.”
“I was the only member to voice concerns on the House Floor and one of only five votes against the program,” Koznick commented. “We need more strong, independent thinkers and voices to stand up for taxpayers, better governance, and accountability.”
Koznick will be introducing a bill to have The Department of Revenue recoup payments made to applicants who received a payment using the identity of another individual and to have The Department of Labor and Industry thoroughly review all applications with fraud indicators to determine whether frontline worker payments were made to ineligible applicants, as recommended in the program report by the Office of Legislative Auditor.
The OLA found that 41% of applicants could not be verified and that multiple state agencies did not even try to comply with best practices for verification. They approved payments to ineligible workers and applicants with fraud indicators without conducting any investigation.
Here is a link to his floor comments on the day the bill passed, April 29, 2022.