Lieske: Priorities for the upcoming legislative session

Friends and neighbors,

The new legislative session is just about here, so I wanted to take a few minutes to walk through what I’m focused on this year. These priorities are coming from the conversations I have almost every day with folks around the district, when they visit my office, and from people who call or write because they’re frustrated about Minnesota is headed.

The issue I hear about more than any other is still fraud. The estimates about the size and scope of the fraud are changing often, but the former Assistant US Attorney Joe Thompson estimated it could be $9 billion – or, half of the total Medicaid payouts made during Gov. Walz’s tenure for the 14 programs under investigation.

The vulnerability assessment that Optum completed recently confirmed what we have already known from whistleblowers, some good reporters, and the Office of the Legislative Auditor. Across the 14 high-risk programs, Optum auditors identified more than $52 million in payments that clearly violated existing rules, and over $1 billion that could have been stopped but for bad policies and weak oversight.

People are, of course, pissed about the enormous, ongoing theft of our tax dollars. But the victims that are getting lost in the fraud discussion are the legitimate providers and the vulnerable Minnesotans who rely on these programs to live. There is a way to do this right. We need to be able to crack down on fraud while still protecting legitimate providers and the vulnerable Minnesotans who rely on their services.

Affordability is the other major issue I hear about constantly. According to the nonpartisan Tax Foundation, we rank near the bottom nationally for tax competitiveness, with high income, corporate, sales, and property taxes. Our housing costs are quite a bit higher than our neighbors. We have a lot of work to do to bring us closer to the middle of the cost of living pack, but we need to start right now.

One idea I am working on that will help: once you own your home outright for a decade, you no longer pay property taxes. Watch for more about this in the coming weeks.

Minnesota has been an expensive state to live in for a long time, but it has gotten significantly worse. In 2023 and 2024, when Democrats had full control of state government, they burned through the state’s record $18 billion surplus, grew state spending by an unsustainable 40%. They added a bunch of expensive new mandates on local governments and schools, and approved more than $10 billion in tax increases. All their work turned the $18 billion surplus into a projected $6 billion deficit. When Republicans regained control of the House, we were able to cut that projected deficit roughly in half. But the budget pressures are still there, as are the pressures their decisions are having on families, school budgets, and local governments.

I know data centers are a tense topic as well. The proposed project in Farmington and the Meta facility in Rosemount have raised real concerns. Yes, these projects can bring jobs and help the tax base, but they also carry real concerns for homeowners. Last year I authored legislation to require data centers to be located in commercial zones, not next to homes. That’s a basic respect issue, and I will pursue it again this session.

Another issue is one of transparency. One of the biggest mistakes a government can make is making people feel like decisions are being jammed through without their knowledge or input. Rep. Drew Roach is working on a bill that will ban any public officials from signing non-disclosure agreements. The public has a right to know what is going on in their communities.

Serving you in the Senate is a privilege. I mean that from the bottom of my heart. I always value your thoughtful feedback and ideas, particularly when we disagree. I remain hopeful that this session can start with more relationship-building and less inflammatory rhetoric. Minnesota works best when we remember that, at the end of the day, we are neighbors first and foremost.

--- Senator Bill Lieske