Budget officials outline governor’s fraud‑prevention proposal; committee questions oversight and prior audits

Officials from Minnesota Management and Budget and the Department of Revenue briefed the committee on the governor's supplemental budget recommendations that would expand fraud prevention and enforcement capacity across state government.

Paul Moore (MMB) said a proposed MMB package would add internal control specialists and internal auditors to provide independent assurance and assist agencies in implementing corrective action plans. He referenced a program integrity roadmap recommending expanded oversight and verification capacity, including internal auditors.

Martha Burton, assistant commissioner at the Department of Revenue, described a request in Article One to expand revenue fraud prevention and enforcement capacity and gave estimated multi‑year funding amounts for FY27‑29. She said the investment would strengthen the department’s ability to prevent, detect and prosecute tax fraud.

Several senators probed the proposals. One senator cited past audit findings and asked how many employees had lost jobs because of widely reported fraud; witnesses said the question is better directed to the specific agencies involved and that the requested investments are designed to improve oversight. Another senator urged caution about creating additional appropriations without demonstrated accountability; a senator moved to delete a section of the governor's package for further consideration.

Administration staff said one provision — restricting legislatively named grant awards or requiring competitive processes — was recommended to reduce conflicts of interest and follows prior inspector general and legislative auditor recommendations.