SE Twin Cities

The Minnesota State Fair is underway, and Representative Pam Altendorf (R-Red Wing) has used the occasion to address ongoing concerns about fraud in state government. In a recent column, Altendorf referenced a new investigation by KARE 11 that revealed deceased individuals were being billed for state services.

Altendorf criticized what she described as a persistent pattern of fraud in Minnesota’s government programs. She highlighted the Housing Stabilization Services program, which began in 2020 with an initial budget projection of $2.6 million per year but grew to more than $100 million within four years. According to Altendorf, "That kind of runaway growth should have immediately triggered scrutiny. Instead, it flew under the radar—at least within the Minnesota Department of Human Services."

She pointed out that one office building in St. Paul became home to 22 different housing providers, many now under federal investigation. "When a program grows this fast and flies this far off course, the conclusion is unavoidable: meaningful oversight was absent from day one," Altendorf wrote. She credited investigative reporters and the U.S. Attorney’s Office for uncovering these issues.

Following these revelations, the Walz administration shut down the Housing Stabilization Services program.

Altendorf also mentioned other cases of fraud during Governor Walz's tenure, including:

- The Feeding Our Future scandal with over $250 million stolen and 50 criminal convictions.

- Child care/CCAP fraud totaling $150 million.

- NUWAY addiction outpatient services at $58 million.

- Frontline workers at $45 million.

- Provider overpayments at $40 million.

- Evergreen Recovery at $30 million.

- Sober homes at $28 million.

- Medicaid fraud at $50 million.

- Unemployment benefits approaching $9 million.

- Nearly $2 million involving Minnesota autism centers.

She noted that U.S. Attorney Joe Thompson estimated total fraudulent activity could exceed more than $1 billion in Minnesota government programs.

In response to these incidents, Altendorf supported legislation last session to create an independent Office of Inspector General tasked with investigating fraud and referring cases for prosecution without oversight from any governor. "The Minnesota Senate passed similar legislation with near unanimous support this session, yet House Democrats refused to allow a vote on it," she stated.

Altendorf questioned why efforts to enact such reforms stalled: "Fraud is literally running rampant in Minnesota...when it came time to enact meaningful change to prevent future taxpayer theft, House Democrats stood in the way."

She concluded by emphasizing her view that ongoing fraudulent activity is not coincidental and called for stronger measures to protect taxpayers’ money: "It is a serious problem that demands a serious solution, and not just another shrug of the shoulders when Minnesota learns of continued (and apparently, inevitable) fraudulent activities in the months ahead."

Altendorf also participated earlier this month in Wabasha County Fair’s first “celebrity” pig show alongside local officials and community members.