Dear Neighbor,
Greetings from the Capitol, where this session’s finance bills are at the forefront. There is a lot of work to do and we only have three full weeks remaining to pass a new two-year state budget and adjourn on time May 19.
Look for more details on various budget bills in upcoming newsletters. For now, here are some other notes of interest:
State of the State
The governor issued his annual State of the State speech on Wednesday. I am pleased with a couple of acknowledgements he made, such as the $6 billion deficit we now face after Democrats in full control of the Capitol the last two years spent our $18 billion surplus and increased state spending by 40 percent.
It also was good to hear him address fraud that has been running rampant in Minnesota. There has been a serious lack of accountability on fraud, waste and abuse from his administration the last six years. House Republicans took the lead on this subject by establishing a new Fraud Prevention and Agency Oversight Committee and it is good to hear the governor talk as if he is interested in tackling this problem in our state.
From there, it is unfortunate the governor’s speech devolved into a finger pointing where he focused more on Washington, D.C., than Minnesota. It would have been better to hear a more bipartisan tone, reflective of our split House and closely divided Senate. We know the governor’s finger pointing won’t fix our roads and bridges, bring down energy costs or provide for our schools. The focus should be on governing here in Minnesota. Even with a 23-day delay to the start of the session in the House because our Democrat colleagues did not show up for work, we can still get our budget work done in a bipartisan fashion and on time by May 19.
Taxpayer costs soaring for providing people here illegally with free healthcare
We have received new data showing enrollment in MinnesotaCare for those in Minnesota illegally has more than doubled initial estimates, sending program costs into orbit and far exceeding previous projections.
The Minnesota Department of Health indicates 17,396 people in the state illegally are now enrolled in the state-funded health insurance program, more than twice the original forecast of 7,700. And that is after only the first four months of sign-ups.
This expanded healthcare program, passed by Democrats in 2023, was originally projected to cost $196 million over four years. With current enrollment, that cost has ballooned to an estimated $550 million and continues to grow.
These numbers are shocking. Families across Minnesota are already dealing with higher prices. Instead of prioritizing the services people count on, we’re now looking at spending over half a billion dollars on a program that wasn’t clearly presented to the public from the start.
Unlike traditional MinnesotaCare recipients, people who are in Minnesota illegally are not eligible for federal funding support. The federal government usually covers 90 percent of program costs, with the state responsible for the remaining 10 percent. Because people living in Minnesota illegally are ineligible for federal matching funds, state taxpayers are paying the full cost of their coverage.
At the same time, Minnesota faces a projected $6 billion budget deficit. Continued funding of free healthcare for those here illegally may jeopardize other critical services such as ambulance operations, rural hospitals, and emergency care.
This really comes down to common sense and honoring our priorities. We’ve got to make sure taxpayer dollars are going to support the Minnesotans who rely on these services every single day.”
Republicans have introduced legislation to repeal the MinnesotaCare expansion for people in the state illegally in order to control costs and protect essential services. This would save taxpayers hundreds of millions of dollars over the next four years and reduce incentives for illegal immigration to Minnesota.
We will see how this issue unfolds. Please stay in touch and I will be back with more from the Capitol soon.
Sincerely,
Lisa