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Minnesota Loses $1 Billion Under Gov. Walz Amid Fraud and Mismanagement

Tim Walz’s tenure as Minnesota’s governor could be the subject of a cautionary tale on government spending and oversight—or perhaps an episode of “How Not to Waste a Budget Surplus.” Since 2019, the state’s losses have approached the eye-popping sum of $1 billion, thanks to Walz’s mismanagement, a shocking scandal involving widespread fraud, and the state government’s apparent inability to keep track of the cash it hands out like Halloween candy.

While the pandemic raged, Walz decided it would be a great time to open the floodgates on government spending to nonprofit groups and various workers, blissfully overlooking crucial warnings from the Office of Legislative Auditor. The auditor’s office had flagged what they termed “pervasive noncompliance” with grant management policies, suggesting that potential risks were being ignored like a lost sock in the laundry. Nevertheless, the governor persisted, apparently relishing the thrill of spending taxpayer money without adequate checks in place.

The horror story unraveled dramatically when it was revealed that a group of 70 individuals had colluded to siphon off $250 million from a state initiative aimed at providing meals for children during the pandemic. This outrageous scheme turned out to be one of the grandest COVID-19 frauds in the nation, prompting many to wonder how it could have happened under such lax oversight. The Minnesota Department of Education received the kind of sturdy criticism usually aimed at a piñata after the scandal broke, with auditors suggesting they take a few more steps in verifying applications from “high-risk” candidates—whatever that entails.

In defending his administration, Walz has enthusiastically pointed out that no state employees were implicated in illegal activities. This is akin to saying that while a bank was being robbed, none of the tellers personally took the cash. The governor claims leadership changes were made, hoping to shift focus away from past blunders. One has to wonder if he views “good luck” as a substitute for good governance.

Then there’s the eye-watering $430 million loss due to improper unemployment benefit payments. Though the percentage of overpayments was lower than many other states, the sheer dollar amount made Republicans clutch their pearls in disbelief. Their message is clear: Minnesota Democrats have perfected the art of fraud and waste, and it’s about time for some accountability. After all, it’s not enough to be “not the worst”; Minnesotans deserve a governor who actually manages their money wisely.

All this financial fiasco is especially rich as Walz has just been selected as Kamala Harris’s running mate for the 2024 presidential election. His administration has cranked up spending by a staggering 40% in one year, fully devouring a $17 billion surplus and leading the state toward tax increases that could make even the most resilient taxpayers cringe. As the governor flails under scrutiny, his record will likely be front and center for a very inconvenient reason: In a time of fraud, waste, and mismanagement, what Minnesota truly needs is a steady hand, not a slippery one.

Written by Staff Reports

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