Returning to good governance in Minnesota will require sustained attention

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In the past, Minnesota proudly boasted a reputation for good governance. The performance of public programs stood out in the country and rigorous accounting kept track of taxpayer funds. In the early 1980s, the encyclopedic study by Neal Peirce and Harry Hagstrom reported that none of the 50 states “offered as close a model to the ideal of a successful society as Minnesota.”

Update: That reputation and track record are gone.

When it comes to grants and contracts with large, well-connected organized interests, questions about taxpayer dollars delivering promised outcomes are rampant. Lax government accounting is not hard to find.

The legislative auditor recently discovered that health care providers for medical assistance programs — hospitals, nursing homes and others — pocketed tens of millions (Minnesota Star Tribune, Dec. 11). Here’s a test of your tolerance for government waste: Should we forgive the Department of Human Services for losing track of $40 million in its budget of $27 billion?

Maybe you’re willing to give the department a pass (I’m not). But should the department at least be able to accurately track its funds and know when and where waste and fraud is occurring? The report by the legislative auditor was damning — our money is being pushed out to medical providers without reliable records of who is getting it and whether they were overpaid and owe us a rebate.

Here’s a big, bold idea that the DFL invested $70 million into in 2023: Prevent violence in the community by recruiting former criminals who have the know-how to anticipate violence and intervene before damage is done.

Has this program started to work? Maybe not. I talked to a longtime community organizer who was privately candid: He supports the program’s aim but worries about the lack of adequate training and guidance of former “street hustlers.” An unprecedented opportunity to demonstrate innovation in community safety may be missed, he feared, because not enough attention was given to building the capacity and professionalism to translate a good idea into the messy reality in communities.

Minnesota can do better. This isn’t wishful thinking. Living proof exists around the country and is profiled by Colorado.

Before a legislative committee decides on an agency’s new request for funding, Colorado’s state auditor testifies on whether government officials improved oversight and internal controls as recommended by the auditor. The immediacy of these reports puts accountability at the forefront of legislative decisionmaking and, by extension, puts fear into the hearts of agency officials. In Colorado — and not Minnesota — program bosses have a strong incentive to avoid critical audits by establishing strong controls and, if funds are misspent, to bend over backward to demonstrate they made needed corrections.

Minnesota is failing by this standard. Real care for taxpayer dollars — rather than cheap rhetoric thrown into a speech or news release — is currently missing in St Paul. Legislators too often act on budget requests without the tools and information needed to judge government performance.

Minnesota can do better. Its Office of Legislative Auditor enjoys respect by many DFL and Republican legislators. But a familiar dance follows the release of its reports: a brief flurry of media attention and then the findings fade from the memory of lawmakers. The message to agencies is unmistakable when legislative auditor reports are released: sound contrite, promise vague improvements, then move on with confidence that lawmakers won’t follow up.

The charade continues in the Legislature. When new budgets are voted on, reports by the legislative auditor of misspent funds and lax oversight are not a serious consideration in whether to continue or increase funding for departments and agencies. It is time to get serious about accounting for taxpayer dollars.

Are you still reading?

When it comes to audits and accountability, eyes glaze over. But at a time when public confidence in government has taken a hit, credible reports of waste and agency arrogance add to the distrust.

Getting serious about oversight and control over public dollars is an agenda that both Democrats and Republicans can support.

DFL programs — like its efforts to foster new approaches to community violence prevention — will survive only if they benefit from tangible feedback and can demonstrate effectiveness by a credible independent auditor.

Republican calls for fiscal discipline and reducing government waste will gain broader support with a road map to the large sources of waste.

Minnesota lawmakers can take a step toward restoring good governance by getting serious about only spending public funds on what is working. Here is a vital agenda to bring both parties together at a time when partisan deadlock may prevail at the State Capitol.

Lawrence R. Jacobs is the McKnight Presidential Chair, the Walter F. and Joan Mondale Chair for Political Studies and the director of the Center for the Study of Politics and Governance at the University of Minnesota.