More Waste and a Bad Budget
by Senator Steve Green

As 2024 winds down, it’s time to reflect on the past year and look ahead to next Session. We are just a few weeks away from a new biennium and a lot has happened.

Earlier this month, the state released its December budget forecast. It confirmed what we expected: Minnesota is tumbling towards a deficit. As of now, the state is forecasted to have a meager $616 million surplus at the end of 2026, followed by a massive $5.1 billion deficit by 2029. This is unacceptable. It proves that unchecked spending by Democrats, even when coupled with $10 billion in tax increases, is not sustainable. These numbers don’t account for any new spending either. And if there’s one thing we can expect from Democrat leadership, it’s for them to make a push for more spending. It’s never enough.

The Walz Administration and Democrats have blown up our state’s budget. The general fund budget was $39 billion in 2014, and it exploded to $71 billion in 2024. This is also unacceptable. It’s bad management of taxpayer dollars. Minnesotans wanted relief, not this. And the only way they can dig themselves out of this hole is by raising taxes. Luckily, the House is currently split down the middle. I am hopeful we can work with the House Representatives to rein in the spending during the upcoming year. Minnesotans cannot afford more taxes. We know this. Now, we have to act on that.

Another development came in the form of an OLA report regarding the Department of Human Services and $40 million in overpayments. According to the report DHS failed to “comply with the significant finance-related legal requirements we tested and generally had inadequate internal controls” and did not attempt to recover more than $40 million – a conservative estimate – in overpayments to Medical Assistance providers. DHS is one the largest portions of our budget, yet this slipped through the cracks. Why are these agencies and commissioners not being held accountable? $40 million is a lot of money, yet Governor Walz has done nothing to hold agencies and Commissioners accountable for their failures. This needs to change.

I also want to point out that the audit focused heavily on long-term care facilities. Through no fault of their own, they received these overpayments. Now the OLA is suggesting that the legislature work with DHS to recover that money. These long-term care facilities across our state have been struggling with staffing shortages, overcrowded facilities, and more. Now, they’ll have to worry about this issue. I’m worried they will be in far worse shape once all is said and done.

Earlier this year there was a similar issue with wasteful spending and nonprofits. The Democrat trifecta gave $1.1 billion in grants to DEED to be given to nonprofits.  Many of which were brand new organizations with no track record. In 2023, the OLA found that there is not proper oversight over these grants. This new case is yet another issue that could have been completely avoided with proper oversight. There has been too much fraud, waste, and abuse under this administration. Things have to change.

We can do better than this. We owe it to Minnesota families. They expect our legislature to be responsible, but things have gotten out of hand. We need proper oversight of these large agencies – they can’t get away with constant waste. It’s long past time we hold Governor Walz and his commissioners accountable for what they’ve done to our state, and it’s time to get our budget and spending under control before it’s too late.