Friends and neighbors,

Minnesota Management and Budget recently released its annual November revenue forecast, providing information and an outlook for the state’s financial picture. While the latest forecast shows a meager $616 million surplus at the end of 2026, it also shows a massive $5.1 billion deficit by 2029. These forecast numbers do not account for any new spending, meaning that new spending bills passed in the next legislative session will further increase the deficit down the line.

The projected $5.1 billion deficit is deeply concerning and underscores how Democrats have mismanaged state finances. After depleting the entire $19 billion surplus, they raised taxes and fees by an additional $10 billion, all without addressing long-term fiscal sustainability.

Further, in the past decade, Minnesota’s government budget has nearly doubled from a $39 billion general fund budget in 2014 to $71 billion in 2024. The state now has some of the highest individual taxes and the 44th worst state and local tax burden in the nation.

More waste, fraud and abuse under the Walz Administration

Another concerning trend under Democratic leadership is the widespread waste, fraud, and abuse in state programs, with the latest example being significant overpayments to Medicaid providers.

On Tuesday, December 10, the Office of the Legislative Auditor (OLA) released a financial audit report reviewing the Minnesota Department of Human Services’ (DHS) outstanding provider debt in Minnesota’s Medicaid program.

According to the OLA report, DHS “did not 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. The report also states DHS “has NOT ACCURATELY REPORTED its accounts receivable balance to Minnesota Management and Budget for inclusion in the state’s financial statements since 2019.”

Minnesotans expect their officials and agencies to responsibly safeguard taxpayer dollars. However, recent instances of fraud, such as this, demonstrate that the Walz Administration has failed our state, ALLOWING FRAUD AND ABUSE OF TAXPAYER MONEY TO PERSIST.

Under Democrat leadership, we are now nearing $1 BILLION IN FRAUD, WASTE, AND ABUSE, yet not a single commissioner or agency has been held accountable. DHS is one of the largest and fastest-growing areas of our state budget. With a deficit looming, this kind of reckless spending cannot be ignored. Your taxes should not increase to cover the cost of mismanagement and fraud.

Minnesotans entrusted their leaders to be responsible stewards of taxpayer dollars, but that trust has been broken. As we approach the 2025 session, it’s crucial to rein in reckless government spending and refocus on the priorities that truly serve Minnesotans. This includes implementing stronger measures to protect taxpayer dollars and prevent similar fraud in the future.

Contact Me

 I want to hear from you, my constituents, on issues that are important to you. Please feel free to reach out to my office with any concerns or ideas you may have. You can contact my office at Sen.Bruce.Anderson@mnsenate.gov or 651-296-5981.

Sincerely,

Bruce Anderson