St. Paul Reporter

With the legislative session nearing its end, most major committee bills have advanced through the Minnesota House and are moving to conference committees for final negotiations. Representative Ben Bakeberg (R-Prior Lake) provided an update on key legislative developments, focusing on education finance, state government reforms, and oversight efforts targeting fraud.

Earlier in the session, a bipartisan agreement was reached on education finance bill HF 2433. The bill aimed to address local control, funding flexibility, and relief from unfunded mandates—issues frequently raised by educators statewide. The legislation proposed redirecting over $150 million into classrooms, investing $40 million in Science of Reading initiatives, maintaining student-focused priorities by limiting state agency funding, and eliminating grants to politically connected nonprofits. It also included an end date for the unemployment insurance mandate and rejected the Governor’s proposed $680 million in education cuts.

“It wasn’t a perfect bill, but it was a good compromise. We redirected over $150 million back into classrooms, invested $40 million into the Science of Reading, and kept the focus on students, not bureaucracy, by holding the line on state agency funding and eliminating handouts to politically connected nonprofits. We also put an end date on the costly UI mandate and rejected the Governor’s proposed $680 million in education cuts,” said Bakeberg.

However, despite initial bipartisan support—including contributions from Democrats—the deal fell apart. “Democrats helped shape this bill. They agreed to it. Then they walked away,” Bakeberg stated.

The breakdown comes as school districts face difficult budget decisions with the academic year ending soon. Bakeberg emphasized his continued commitment to supporting schools: “This was a chance to deliver meaningful support for schools. I’m going to keep fighting for real solutions that reflect what educators are actually asking for.”

Last week saw passage of the State Government Finance bill in the House. According to Bakeberg, Republicans pushed for reforms designed to curb fraud and reduce unnecessary government spending. Measures included stronger protections for whistleblowers reporting fraud or abuse; new requirements for agencies to post organizational charts and report suspected fraud; authority to withhold payments when credible allegations arise; increased staffing at the Office of the Legislative Auditor; and creation of a Medicaid Fraud Unit.

“Minnesotans are tired of seeing tax dollars disappear through fraud and bureaucratic bloat. That’s why we championed a series of oversight and accountability measures,” Bakeberg said.

The update also highlighted responsible budgeting efforts intended to align state spending with core service needs rather than continuing unsustainable trends.

A newly formed House Fraud and State Agency Oversight Committee has begun work this year under Chair Rep. Kristin Robbins. The committee has heard testimony from multiple agencies about longstanding failures related to grant management and kickbacks within nonprofit programs funded by state money.

“Over the past few months, the committee: Heard directly from the Office of the Legislative Auditor and the Office of Grants Management about systemic failures that have gone unaddressed for years. Took testimony from the Department of Human Services and others, revealing kickbacks and loopholes in current law. Produced two serious reform bills: one cracking down on grant fraud with better training, oversight, and transparency; the other making kickbacks in state-funded nonprofit programs a crime,” Bakeberg reported.

He added that these efforts led to proposals such as a statewide list of suspended grantees, required site visits for grant recipients, proper certification for grant managers—and launch of www.MNFRAUD.com as a centralized reporting platform that received more than 650 submissions within weeks.

“This committee is shining a light where it's long been needed. We're changing the culture in state government by making it clear: fraud will no longer be ignored, and agencies will be held accountable,” said Bakeberg.

In addition to legislative matters, Bakeberg acknowledged National Small Business Week and Teacher Appreciation Week as important observances supporting local economies and education systems nationwide.

Finally, he extended Mother’s Day wishes: “As we head into the weekend, I want to take a moment to wish a very Happy Mother’s Day to all the moms in our communities.”