Fiscal Responsibility and a Balanced Budget
Key Facts About the Minnesota State Budget:
The Constitution of the State of Minnesota requires a balanced budget each and every year.
According to the February 2026 economic forecast by Minnesota Management and Budget (MMB), the projected balance stands at a $3.7 billion surplus.
Minnesota's current budget reserve (also known as the rainy day fund) is approximately $3.42 billion for the 2026–2027 biennium.
MMB notes the fund is fully funded up to its current statutory target of about $3.4 billion (or roughly 5.2% of non-dedicated general fund revenues).
The state cash flow account is currently about $350 million and the disaster relief fund balance is $31 million.
Minnesotans should expect responsible stewardship of their tax dollars.
One dollar of fraud is too much.
Fraud is completely unacceptable. It must be identified and prosecuted to the full extent of the law. When it becomes clear that our fraud laws need to be expanded, and their penalties increased, the legislature must act.
Over the last four years, in response to criminal activity by private contractors in our Medicaid programs, I have worked with the DFL in the Minnesota Legislature to bolster our ability to detect fraud, while also installing new and stronger guardrails to protect against it.
DFLers have led on strengthening program integrity, securing:
Comprehensive background checks on Medicaid providers.
Mandatory in-person site visits by MN Department of Human Services.
Electronic tracking systems to ensure private Medicaid providers are delivering the services they claim.
Risk-based screening that acts as an additional guardrail to potential fraud.
Immediate suspension of payments to providers when credible suspicion indicates fraud.
Increased unannounced site visits to Medicaid providers.
Expansion of Medicaid Fraud Control Units in the Attorney General’s Office as well as the Bureau of Criminal Apprehension.
Establishment of an Office of Inspector General to lead on PREVENTING fraud and faud investigation. DFL’ers enshrined the OIG into the Minnesota State Constitution, specifically citing fraud prevention as a key priority of the new office.
In 2026, the Minnesota Legislature added 17 new investigators to the Medicaid Fraud Control Unit. The anticipated increase in fraud penalties and monetary restitution is expected to balance out the increased costs.
In Minnesota we need to stop all fraud within public programs delivered by private contractors. But Minnesota is not an outlier regarding Medicaid fraud.
Compared to other states with similar sized Medicaid programs, Minnesota rates better in identifying and preventing Medicaid abuse. And we continue to root out fraud wherever it is found.
How Minnesota Compares to Other States
Improper Payment Rates: Centers for Medicare & Medicaid Services (CMS) data shows Minnesota's error rate is substantially lower than the U.S. average, disputing claims that Minnesota is an outlier for routine waste.
Conviction Rates: According to the Minnesota Star Tribune, Minnesota reported 43 Medicaid Fraud Control Unit (MFCU) convictions, surpassing more populous states like Florida and Illinois in recent reporting periods.
Nationwide Scope: Medicaid fraud is not unique to Minnesota. For example, other states like Arizona and Texas have recently faced massive federal health care and substance abuse treatment fraud enforcement operations worth hundreds of millions of dollars.
There is an enormous gap between documented cases and the estimates being cited publicly. Sweeping fraud allegations require accountability, whether they come from Democrats, Republicans, influencers or even legitimate news sources. Minnesotans deserve true accounting and I will continue to make getting answers a priority.
1.2 million Minnesotans benefit from Medical Assistance and we must make sure that those eligible receive it.