Dear Neighbor,
The 2025 session starts next month, and we have received new information regarding two major issues for the upcoming session: setting a new two-year state budget and eliminating waste and fraud that is running rampant in our state.
Before we get to that, I want to mention that House committees are now in place for the next biennium, and I am pleased to serve as Vice Chair of Labor and Workforce Development Finance and Policy. I also will continue serving the committee related to energy, along with housing.
As for the previously mentioned issues, let’s start with government waste/fraud. State agencies are on notice after yet another non-partisan audit revealed serious mismanagement and lost taxpayer revenue in Minnesota. This time, a report issued Tuesday by the Minnesota Office of the Legislative Auditor indicates the Department of Human Services did not comply with the significant finance-related legal requirements, has not attempted to recover substantial overpayments totaling more than $40 million to Medical Assistance providers, and has not accurately reported its accounts receivable balance to Minnesota Management and Budget for inclusion in the state’s financial statements since 2019.
We all know full Democrat control of St. Paul has resulted in reckless spending increase, unnecessary tax increases and broken promises the last two years. Unfortunately, that’s not the end of it, with the total lack of accountability and sloppy accounting one-party rule allowed to take place in state agencies becoming clearer every day.
House Republicans are sending formal letters to all 25 state agency commissioners, requesting detailed information on department expenditures, potential areas for cost savings, how to increase efficiencies, and areas for budget reductions within their agencies. This is the first step in House Republicans’ efforts to rein in out-of-control spending and stabilize Minnesota’s long-term budget outlook.
Republicans will focus on bringing new accountability to state government this session – including basic accounting. We will demand more from our agencies because we cannot continue letting taxpayer dollars fall victim to unchecked government waste. It’s sad we even have to say that because it is the bare minimum Minnesotans deserve.
This audit is just the latest in a series of reports revealing rampant fraud and waste in Minnesota departments and programs, from Feeding our Future to childcare assistance, frontline worker pay, and DHS and the Department of Education, costing Minnesota taxpayers hundreds of millions of dollars.
Now, just today, there's breaking news of another major fraud story that has ties to this area. We'll get back to this one as the details unfold.
Regarding the budget, the state recently issued a new economic forecast, projecting a $616 million surplus through the 2026-27 biennium – a decrease of $1.1 billion from previous estimates – and a significant future shortfall.
The report from Minnesota Management and Budget indicates reductions in income and sales tax revenues combined with higher spending for long-term care and special education result in a growing potential shortfall in the future. It also reveals a deficit of more than $5 billion through the 2028-29 biennium.
This underscores the need for balance after Democrats in St. Paul spent the state’s surplus that once was near $21 billion, raised taxes by $10 billion and increased the state budget by 40 percent with the budget they set in 2023. Even their $10 billion tax increase isn’t enough to support the spending spree. They even gave illegal aliens free health care and free education – all funded by hardworking taxpayers.
Republicans will bring a more balanced approach after gaining equal power in the House. We’re serious about rooting out fraud Democrats have allowed to run rampant and will stop to the automatic spending increases that have bloated our government. An updated February forecast will serve as the official framework for the 2025 session as we work to set a new two-year state budget before adjourning in late May.
Until next time, please stay in touch and let me know how I can help.
Sincerely,
Shane