Where Democrats and Republicans Stand on Child Care Fraud in 2020

Minnesota taxpayers are on the hook for $100 Million of child care fraud every year in the state's Child Care Assistance Program (CCAP). Last year, Fox 9 broke the news that this massive scam was not being properly investigated by DHS and resulted in suitcases of cash leaving our country, heading to Somalia. Since the story broke, the Minnesota Dept of Human Services moved the failed Inspector General, Carolyn Ham, to another department with full pay and benefits.

 

Action 4 Liberty reported that at 5 am in the morning during last year's Special Session on Memorial Day weekend, the legislature fully funded the fraudulent child care program. Politicians made minor reforms to combat the fraud, which will not stop the program. The CCAP program amounts to about $250 Million a year (federal, state and county funding), so nearly half the program is being abused. That's why we've called for an end to the program immediately. SIGN OUR PETITION.

 

So what do Republicans and Democrats have to say about the child care fraud as they prepare for the 2020 Legislative Session?

 

In an interview with Minnpost, when Governor Walz was asked about the status of DHS he stated "we did not have the processes in place to make sure that we’re following rules. Now some of those rules are complex and maybe archaic. But that’s no excuse for not doing them." Walz appeared open to the idea of splitting up DHS, but made no mention of what he'd do to stop the child care fraud in particular.

 

Senate Republicans rolled out their 2020 Vision yesterday. The stated priorities were "Working Together", Health Care, Clean Energy, Clean Water, "Taking Care of People" to name a few. Absent from their vision was combatting the massive child care fraud by eliminating the CCAP program. Senate Republicans mentioned holding DHS accountable by "including a proposal to move the Office of Inspector General outside the agency to give them more autonomy."

 

Why is this issue absent from the 2020 objective of both parties? Are they so naive as to think that the fraud has magically gone away? When Rep Jeremy Munson questioned the new DHS Commissioner in November about how many child care facilities they've visited to ensure there is no fraud, she did not have an answer.

 

Action 4 Liberty, along with thousands of petition signers from across the state, call for an end to the fraudulent child care assistance program. Any entity plagued with this amount of fraud cannot be fixed; it must be ended to ensure taxpayer money is not being abused.

 

 

 

 


Senate Republicans Propose Spending the Surplus!

Senate Republicans released their 2020 Legislative Priorities this morning announcing that they would be giving back a small portion of the $3 Billion of surplus, while holding onto the rest of it for government spending projects. A budget surplus occurs when taxpayers have been overcharged - revenues far exceeded current spending levels. The largest part of the surplus sits in a historically high reserve account.

 

If Republicans would give back the surplus, individual taxpayers could receive a refund of $1,250 each. At today's press conference, Gazelka stated they only wanted to give "some of it back". The "some" part was defined as farm relief and social security tax elimination. However, the largest part of the surplus, the reserve account, would remain in place under Gazelka's watch.

 

"We talked about ensuring that the reserves stay full" stated Gazelka when responding to a question from the media about what would be done with the surplus. This means that a record $2.5 Billion would remain in the government coffers earmarked for future wasteful government spending projects and not back in the hands of the private economy.

 

Action 4 Liberty calls for every penny of the surplus to be returned to the taxpayers! We were overcharged by our government and have a rightful claim to get it back. Sign our petition and send them a message!

 


Walz Wants Debt to Pay for Affordable Housing

Democrat Governor Tim Walz wants the taxpayers of Minnesota to go further into debt to pay for government subsidized housing. In one of his most radical ideas to date, the Governor proposed a massive $2 Billion bonding (debt) bill that spends $276 Million on affordable housing. 

 

Why is the state government involved in housing in the first place? Well, according to Walz' Housing Commissioner Jennifer Ho, "we believe the role of government is to produce housing where the private market won’t do it on its own." What's even more egregious about this proposal, however, is that Ho and Walz are asking for taxpayers to pay for this on the state credit card over the next decade. 

 

In a way, Walz wants Minnesota taxpayers to take out a mortgage for someone else's home. 

 

So far, Senate Republicans have signaled that Walz' bonding proposal is too big. But after the legislators in both parties embarked on a recent statewide debt tour, it's likely Senate Republicans will come out with a billion dollar proposal of their own. Which means, Minnesota taxpayers will likely get stuck with a massive debt bill somewhere in between.

 

Action 4 Liberty believes that its not the proper role of government to subsidize housing, especially when its financed on the government credit card. Republicans in St Paul should oppose debt, not propose it. Walz and Democrats' master goal is to grow government at the mercy of the taxpayer. This is what Republicans need to fight tooth and nail against.


Zerwas Breaks Rules - Registers as Lobbyist

Former Republican Rep Nick Zerwas, who resigned from office in December and immediately took a job in "government affairs" for a lobbying firm, has broken Minnesota House rules by registering as a lobbyist at the Capitol. A recent registration with the Minnesota Campaign Finance Board shows Zerwas is officially a registered lobbyist.

 

Minnesota House Rule 9.35 has a ban on lobbying for one year. According to the rule, "former state legislators must not register as lobbyists within one year from the date they leave office." It's unlikely Zerwas will be held accountable since Republican Minority Leader Kurt Daudt also recently took a job with a DC lobbying firm. 

 

Will this blatant disregard to the rules finally get members of the Old House Republican Caucus publicly condemning Zerwas? Up to this point there was a swampy tradition where legislators resign from office or don't seek re-election to go work for lobbying firms in their "public affairs" or "government affairs" divisions. Former Majority Leader Joyce Peppin did not seek re-election in 2018 because she was also taking on a new role in public affairs. However, Zerwas is the first to actually register as a lobbyist.

 

Even before Zerwas' registration, Rep Jim Nash, a fellow member of the Old House Republican Caucus, quickly took to twitter to joke about Zerwas' new lobbying gig. Nash tweeted, "so do I keep candy in my desk drawer in the SOB for meetings with you now?"; making fun of the newest legislator-turned-lobbyist scam at the Capitol. 


St Paul College Savings Program Accommodates Sharia Law

The task force that recommended how to use Minnesota taxpayer money to fund a socialistic-style college savings program for newborns in St Paul used islamic prohibitions on receiving interest in consideration of what type of accounts to set up. This program made headlines last week when it was reported that the new savings program would use low interest bearing savings accounts with Bremer Bank instead of accounts invested in stocks and bonds, like a Minnesota 529 plan.

 

Action 4 Liberty also reported this week how Minnesota taxpayers ended up on the hook for the program. It was part of a massive omnibus education bill in which all 67 Minnesota Senators voted for and all but 13 Republicans in the Minnesota House signed it into law. 

 

According to the publicly available task force report set up by St Paul Mayor Melvin Carter, Somali Muslim members in the community voiced their concern over their inability to use the publicly subsidized savings accounts due to religious prohibitions on receiving interest. Although the task force didn't appear to fully adopt their concerns in the overall policy, they did suggest that accommodations be made by the financial institution.

The main reason behind low-yielding interest savings accounts, according to the report, is to accommodate low income households who do not have current bank accounts and would be unable to transfer funds into a brokerage account. 

 

Action 4 Liberty believes this program is not a proper role of government. In a free society, money is not taken from one group of individuals and redistributed to benefit a selected group of recipients. Socialistic-style public policy-making is riddled with problems like the ones addressed above: religious accommodations, family income considerations, etc. 


Refugee Resettlement Halted in Beltrami Co

Hundreds of Beltrami County citizens filled the County Board chambers last night to halt the refugee resettlement program. The Trump administration passed an executive order last year allowing state and local governments to make the final determination if they want to accept new populations of refugees.

 

Several rural areas in Minnesota like Willmar and Waite Park have encountered numerous problems with the influx of refugees unable to assimilate into the culture. Growing tensions amongst the populations of those areas has led to a political rallying cry to change the resettlement policies in the state.

 

Beltrami County was the first county in Minnesota to vote to stop new refugee resettlement in a 3-2 vote. The law requires counties to "opt in" to the resettlement program. No action is the same as a no vote. Other counties like Kandiyohi, Blue Earth, and Nicollet have already voted to accept new refugees. 

 

Reaction to the news was heard immediately in the St Paul Swamp. DFL Majority Leader Ryan Winkler posted on Facebook an emotionally charged response that some may assume amounts to a "Quid Pro Quo" --- the same charge Congressional Democrats used against Trump in the impeachment proceedings.

A left-wing 501c3 charity based in St Cloud, an area all too familiar with the problems of assimilation, went a step further late last night accusing Beltrami County residents as racist and xenophobic.

 

(Cover photo credit: MPR)


Gazelka's Pride Resolution

An interesting piece came across our desk this week. Republican Senate Majority Leader Paul Gazelka attached his name to a Senate resolution promoting a liberal grassroots environmental and diversity group. The resolution recognizes HeightsNEXT, a Columbia Heights organization promoting the local PRIDE celebration for the LGTBQIA+ community.

 

According to their website, HeightsNEXT is the local organizer behind the infamous global warming protests that were the brainchild of 15-year old Greta Thunberg. One of their big initiatives is green energy in the Columbia Heights area.

 

The image shows a signed resolution by Gazelka that states "the Senate of the State of Minnesota congratulates and honors HeightsNEXT for their service in initiating and leading the creation of the first PRIDE Festival in Columbia Heights."

(Source: HeightsNEXT FB page)

 

Here's the question, while Paul Gazelka is busy recognizing far left organizations, where is his recognition of the 2.4 million Minnesota taxpayers who have been massively overtaxed by the state. Where's the resolution stating that the Senate of the State of Minnesota recognizes $3 Billion was overcollected and will be returned to the taxpayers immediately? In fact, where's the bill that directs the state to refund that money?

 

With a resolution like this, Gazelka's name is being used to promote and advance the identity politics strategy commonly employed by the left which has led to civil disruption in our country and state. People should be judged by their own merits and character, not by their sexual orientation or group identity. 


Legislator Turned Lobbyist - It's All a Big Laugh to Them

A lucrative deal for legislators who want to cash out on their time in the St Paul Swamp is to explore the grey areas of legal lobbying on the Minnesota books. MPR recently published an article about these troublesome areas and how the Minnesota Campaign Finance Board's proposed changes to current law face an uphill battle.

 

Kurt Daudt, House Minority Leader of the Old House Republican Caucus, made headlines in November when he announced that he was taking a new position with an infamous DC lobbying firm as the Director of Public Affairs. In the firm's press release, they stated that Daudt was hired because he enables the firm "access to elected and appointed leaders in all 50 states” and Daudt has a “deep knowledge of the legislative process.”

 

What's most troubling about Daudt's move is that he will remain an elected legislator while also serving in his new lobbying capacity. How that is not a conflict of interest in the minds' of most of his Republican colleagues in St Paul is troubling to small government advocates like us.

 

Perhaps the silence from members in his caucus is due in part to a swampy tradition that precedes Daudt and continues on to this day. Keep in mind that former Majority Leader Joyce Peppin did not seek re-election in 2018 because she was also taking on a new role in public affairs.

 

Shortly after Daudt's announcement, Nick Zerwas (R-Big Lake/Elk River) announced his resignation from office which forced a special election to fill his vacant seat this February. During the Christmas break, Zerwas snuck a tweet in declaring that he also would be going to work in the public affairs realm for a lobbying firm. 

 

Rep Jim Nash, a fellow member of the Old House Republican Caucus, quickly took to twitter to joke about Zerwas' new lobbying gig. Nash tweeted, "so do I keep candy in my desk drawer in the SOB for meetings with you now?"; making fun of the newest legislator-turned-lobbyist scam at the Capitol. 

 

Action 4 Liberty advocates for reducing government control, while expanding individual freedoms. Is it any mystery why we continue to see government grow even while Republicans are in positions of power? Most of these legislators, Republicans and Democrats alike, have no interest in limiting government. Instead, they are just part of the swamp that continues to grow its power and erode our freedoms. Meanwhile, it's all one big joke to them.


Your Senator Spent Your Money for the St Paul College Savings Plan

A popular story covered by the local media emerged in the New Year about a brand new program in St Paul that gives all newborns born in St Paul $50 in a college savings plan. The program on its merits is ridiculous considering how it's another classic socialistic redistribution program spawned from the heads of metro Democrats. On top of that, the money gets put into a low yielding savings account by Bremer Bank, instead of invested in the stock market where it may stand a chance to grow to $200 by the time the kid is 18. Will that even buy a book?

 

We were shocked to learn that the program was not just funded by St Paul taxpayers. The media reported it was part of legislation that passed in May of 2019 and that all state taxpayers are on the hook. So we decided to investigate.

 

Turns out, the pilot program that is now being used by liberal Mayor Melvin Carter, passed in the Omnibus Education bill (HF1) during the Special Session on Memorial Day weekend. The bill appropriates $500,000 of your money in the next two years to redistribute to newborns in St Paul. 

Here's the interesting part. Debate over this omnibus bill occurred in the middle of the night during the Special Session. It was brought to a vote by Republican Senate Majority Leader Paul Gazelka and voted by all 67 Senators. That's right, Republicans and Democrats all voted for this program which takes your money and funds this program.

The bill passed the Minnesota House by a vote of 112 to 13


What You Haven't Heard About the Surplus

It's the New Year and the 2020 legislative session is a month away. Since this year is also an important election year, you can imagine that every move by Republicans and Democrats will be measured based on how they will be perceived by voters in November. High amongst their evaluation is what they do with the massive budget surplus. 

 

What is a budget surplus? When politicians in St Paul set a budget of how government is going to collect and spend your money, they are suppose to make sure there is a budgetary balance. In other words, the amount collected = the amount spent. Anything more means they overtaxed you.

 

Similar to a waiter overcharging you for dinner, the remedy is to immediately return the money to you. Of course greedy politicians look at surpluses in a completely different way. They look at the money as more opportunity to waste your money on pointless government spending projects.

 

If you pay attention to the media or your local rep, you've probably heard there is a projected $1.3 Billion surplus in the current biennium. But that number is completely understated. The hidden secret your media and legislators aren't telling you is that the number is much larger.

 

(Source: Minnesota Management & Budget)

 

Our state government is sitting on an unprecedented, massive budget reserves of your money. While it may be prudent for a family to have rainy day funds in case of an emergency, government should not extract large sums of money out of our private economy to hold for future spending. If you add the $2.358 Billion of budget reserves to the available balance of $1.332 Billion, we actually have over a $3 Billion budget surplus. 

 

Action 4 Liberty calls for every penny of that surplus to be returned immediately to the taxpayers. Minnesota is one of the worst tax states in the country and we lag behind the national average in employment statistics. Putting that money back in the hands of taxpayers and jobs creators will give a significant boost to our economy. 

 

Giving the surplus back is unfortunately a partisan issue. Modern Democrats seem hell bent on taxing and spending with no regard to reducing the heavy tax burden on job creators in our state. The only hope for us is that Republicans stop following the Democrats' lead of taxing and spending, and instead side with Minnesota taxpayers for once. Senate Majority Leader Paul Gazelka would be wise to spend his energy writing and promoting a $3 Billion tax cut this session and not agree to work with Democrats on anything else unless the money is returned to its rightful owners. Voters in November would likely reward him and his caucus for that move.