Minnesota Paid Dearly for Saving $1 Million

[question everything]

For an example of penny-wise-pound-foolish policymaking, it’s hard to beat Minnesota’s decision to eliminate its elected state treasurer position. It helped pave the way for one of the biggest frauds in American history. When no statewide official is clearly responsible for safeguarding public money, taxpayers pay the price.

In 1998 voters approved a constitutional amendment scrapping the treasurer’s office after supporters of the move argued that the office’s duties were mostly clerical and that eliminating it could save up to $1 million a year. Effective in 2003, the treasurer’s authority was scattered across state agencies, leaving billions of dollars in the hands of appointed officials and career staff who didn’t answer directly to voters. What had been a public trust became an internal conversation among bureaucrats, largely shielded from public scrutiny.

That independent watchdog mattered. An elected treasurer does more than sign checks or track budgets. The office serves as the people’s financial guardian, reviewing contracts, scrutinizing expenditures and sounding the alarm when the numbers stop adding up. Take away that clear line of accountability, and early warnings are easy to ignore or brush aside deliberately.

The cost of Minnesota’s mistake exploded during the pandemic with the Feeding Our Future scandal. Prosecutors allege that a network of operators stole nearly $250 million meant to feed children, billing for 91 million phantom meals and spending the proceeds on mansions, luxury cars, jewelry and real estate. Despite mounting red flags, the Minnesota Department of Education kept payments flowing, worried about lawsuits and discrimination complaints, while pandemic-era waivers loosened already weak oversight.

When nearly a quarter-billion dollars can vanish from one state program before anyone truly notices, taxpayers are justified in asking who was supposed to be minding the store. The uncomfortable answer is that no one elected by the people held that responsibility or had the mandate and clout to stop the scheme.

More..

https://www.wsj.com/opinion/minnesota-paid-dearly-for-saving-1-million-8c93ba7e?st=ycVnWd&reflink=desktopwebshare_permalink

free

Mr. Oleka is CEO of the State Financial Officers Foundation.

[OldBaldy1701E]

1. Hmm...

Despite mounting red flags, the Minnesota Department of Education kept payments flowing, worried about lawsuits and discrimination complaints...

I wonder why they were so worried about that despite the facts of the matter, which showed that grift was taking place?

Hmm...

[MichMan]

2. What about the governor and AG?

"The uncomfortable answer is that no one elected by the people held that responsibility or had the mandate and clout to stop the scheme."

[question everything]

3. Not their job. According to the above they do not follow payments

[MichMan]

4. That isn't what the governor says

Walz on fraud: “I am accountable for this, and more importantly, I am the one that will fix it.”

ST. PAUL, Minn. (GRAY) – Minnesota Governor Tim Walz weighed in on recent developments in state fraud investigations at an unrelated event Friday morning.

The governor, in his remarks, shouldered responsibility for the fraud that happened in Minnesota during his time as governor, and for fixing the state’s oversight measures.

“This [was] on my watch,” the governor said. “I am accountable for this, and more importantly, I am the one that will fix it.”

https://www.kttc.com/2025/12/19/walz-fraud-i-am-accountable-this-more-importantly-i-am-one-that-will-fix-it/

If the actions of the voters in Minnesota are to blame, it would make sense that the state should be required to pay back all the stolen money to the federal government.

[NewLarry]

5. "The Buck Stops Here"

Is more than a slogan with this man.

The fraud is deplorable, but the Governor's response is admirable.

[question everything]

6. Now it is too late. Someone should have followed invoices and payments. Not the governor. His job is to govern

He was not accountable two years ago.

As the op-ed states, an elected treasurer should have.

[MichMan]

7. Minnesota does have a Commissioner of Management and Budget

The Commissioner of Management and Budget is a state executive position in the Minnesota state government. The commissioner is the state's controller and chief accounting and financial officer, and acts as head of the Office of Management and Budget, which provides a number of financial services to the state including accounting, payroll, and financial reporting.

Per 15.06 of the Minnesota Statutes, the governor appoints the Commissioner of Management and Budget with the consent of the Senate. The commissioner serves at the pleasure of the governor. His or her term expires at the end of the governor's term or if the governor vacates office

The current Minnesota Commissioner of Management and Budget is Erin Campbell (nonpartisan). Campbell assumed office in 2023.

https://ballotpedia.org/Minnesota_Commissioner_of_Management_and_Budget

Then there is this.....

In the United States, the treasurer of a state is the official charged with overseeing revenue and finances and generally acting as the state's chief banker. Every state in the United States has a treasurer, though some have a different official title for the office. In New York and Texas there is no treasurer -- instead, those duties are performed by the controller.

Most states elect the treasurer; of those states, it is common for treasurer to be a constitutional executive office. Some states, however, treat the position as a member of the governor's cabinet, thus making the position a gubernatorial appointment.

HIGHLIGHTS
The position of state treasurer exists in 48 states; it is elected in 36 and appointed in 12.

https://ballotpedia.org/Treasurer_(state_executive_office)

[Seeking Serenity]

8. Here's the problem

Per 15.06 of the Minnesota Statutes, the governor appoints the Commissioner of Management and Budget with the consent of the Senate. The commissioner serves at the pleasure of the governor.

Unlike an office under the authority of the governor, who serves at the pleasure of the governor and who might be reticent to report on or even investigate things that might prove embarrassing to the governor, an independently elected state treasurer not beholden to the governor, the AG, the legislature, etc, could tell them all to go kick rocks, here's what I've found and I'm reporting it to the public. Stay embarrassed.

[question everything]

9. I don't know that it "might prove embarrassing to the governor" Rather, a treasurer will look closely at invoices

their sources, their frequency as opposed to the governor and the AG who will just glance at them being busy with other chores.

[Seeking Serenity]

10. OK, I take your point. MY point was that

An independently elected state treasurer only has to answer to the people that voted him in, and if the people don't like the way the treasurer is doing his job, they can boot him out of office.

An independently elected treasurer doesn't have to worry about being fired for doing his job.

[question everything]

11. Completely agree

[MichMan]

12. Well, that would be up to the governor and whomever they appointed

Minnesota is just one of twelve states where the treasurer role is appointed instead of being elected. It isn't uncommon.

The governor needs to choose someone who isn't afraid to call them like they see them and let them do their jobs without interference. Like Biden did with AG Garland for example.

Is the insinuation being made that Walz appointed someone who was afraid to point out fraud in fear of being fired?

[Seeking Serenity]

13. I doubt we have enough information yet

Is the insinuation being made that Walz appointed someone who was afraid to point out fraud in fear of being fired?

I don't think we have enough information yet to make that inference. I do find it odd though that, by law, the appointed state treasurer has to leave his office when the governor that appointed him leaves office. That seems to me to lard in some potentially perverse incentives.