Boots & Sabers

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Tag: Minnesota

House Investigates Chronic Fraud in Walz’s Administration

The fraud was massive and undeniable. The question is what did Walz know and when did he know it?

Minnesota Governor Tim Walz was subpoenaed by the House Education Committee on Wednesday as part of the GOP lawmakers’ latest investigation into the Democratic presidential ticket, probing into an issue that has long been Walz’s kryptonite: child nutrition programs.

 

[…]

 

A Minnesota-based nonprofit, Feeding Our Future, is accused of misusing $250 million of taxpayer dollars from a COVID-19 relief fund intended to feed children in need.

Walz has not shied away from addressing the largest pandemic relief fraud in the nation, which happened right under his nose.

 

At a press conference in August, before being picked by Harris, Walz addressed his administration’s lack of fraud prevention and a scathing legislative audit that called the MDE’s oversight “inadequate.”

 

“I think what you’re seeing is if you commit fraud in Minnesota, you are going to be caught as you are going to go to prison,” Walz said. He pointed to administrative changes and safeguards to prevent future fraud, such as implementing an inspector general for the MDE.

 

The federal government charged over 70 defendants, five of whom have been convicted of fraud, while the rest await trial.

 

Feeding our Future benefited from the child nutrition program designed to aid hungry children during the pandemic, as schools and care facilities were shut down. Prosecutors allege Feeding our Future submitted fake names of children to the Department of Education to receive funds.

 

Walz and the other officials subpoenaed have until Sept. 18 to release the documents requested.

 

States Slip Into Deficits

Hmmm

ST. PAUL, Minn. — Minnesota is projected to have a budget surplus of $2.4 billion this biennium, state officials said Wednesday. But there are warning signs in future years that could lead to a potential deficit.

 

The $2.4 billion surplus is $800 million more than end-of-session estimates, but smaller than the eye-popping $17 billion surplus the state legislature had to work with when they began session this past January, before it passed a $72 billion state budget by adjournment in May. 

AND

California is facing a major budget crisis due to a “severe revenue decline,” and a record $68 billion budget deficit, likely forcing Democrats running the state to cut spending as the mass exodus of people and businesses moving to Republican-run states continues.

According to California’s non-partisan Legislative Analyst’s Office (LAO) report released Thursday, the state’s budget deficit has grown exponentially in just a few months’ time, up more than $54 billion from just $14.3 billion in June.

Minnesota has burned through a healthy surplus with massive spending and California already has a massive deficit. Both states are run by Democrats and are merely at different points in a very predictable trajectory.

There’s a lesson for Wisconsin here. We have a surplus right now that Democrats, and some Republicans, are fighting over how to spend it. The lesson is that politicians will spend whatever you give them and then some. The only way to control the size of government is to limit the money they can spend. If Democrats manage to retake the Legislature, this generation of Democrats has shown absolutely no willingness to restrain their spending. It would be a balance sheet bloodbath.

Just say no.

No means no.

Minnesota is Radioactive

When are we going to talk about the Democrats in Minnesota colluding to cover up a nuclear accident?

MONTICELLO, Minn. (AP) — A Minnesota utility began shutting down a nuclear power plant near Minneapolis on Friday after discovering water containing a low level of radioactive material was leaking from a pipe for the second time. While the utility and health officials say it is not dangerous, the issue has prompted concerns among nearby residents and raised questions about aging pipelines.

 

 

Xcel Energy discovered in November that about 400,000 gallons (1.5 million liters) of water containing tritium had leaked. The utility made a temporary fix but learned this week that hundreds more gallons of tritium-laced water leaked, leading to the shutdown decision.

High Earners Flee Minnesota After Tax Hike

Yes, Virginia, tax policies matter.

Minnesota, on net, lost $1 billion of income to other states between 2013 and 2014. Specifically, the state lost $944 million in adjusted gross income reported by tax filers who moved in and out of Minnesota. This is the largest net loss of income ever reported for Minnesota, and it represents a dramatic rise from just three years ago, when the state lost $490 million.

While the IRS has been tracking income movement since 1992, it released a new data series last year that for the first time provides annual information on who is moving from state to state, based on age and income. These new data refute a long-held assumption that Minnesota’s income loss is primarily due to retirement.

In fact, people in their prime working years represent the largest portion of the net loss of taxpayers and income. Working-age people between 35 and 54 account for nearly 40 percent of Minnesota’s net loss of tax filers for the 2013-14 period. People between 55 and 64 — most of whom are still in the workforce — account for another 23 percent.

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Looking specifically at top earners — the people most directly impacted by Minnesota’s 2013 tax increase — shows that Minnesota is losing taxpayers earning over $200,000 at an alarming rate. The state’s rate of income loss from these people ranks 47th for 2013-14.

The data is lagging, so we only see the year right after the tax increase. I suspect that we will see that flight accelerate. People can’t often change their location immediately after a massive tax hike. There are other factors in their lives to consider. But give them a few years and the options open up. Every fixed cost becomes a variable cost with the passage of time.

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