A stock photo of $100 on fire. (Getty Images)
Last week, Governor Tim Walz informed Minnesotans that a significant factor in the state’s burgeoning fiscal imbalance—meaning the state will spend more than it earns over the next few years—is the dramatic increase in spending on early intervention programs for autistic children. He mentioned this several times. When questioned by a reporter about concerns regarding program fraud—a federal investigation first reported by the *Reformer* in June—he appeared surprised.
“As far as autism being people not claiming that they have autism?” Walz asked, characteristically.
The reporter clarified concerns about fraud within the state’s autism program, to which Walz replied, “We always investigate it and those people go to jail.” However, no charges have yet been filed.
Events escalated quickly. On Thursday, FBI agents executed search warrants at two locations, revealing explosive allegations of massive overbilling for services never rendered.
Walz immediately responded by emphasizing his tough stance on fraud within the state’s safety net programs over the past decade, citing issues in childcare, the Feeding Our Future program, and Medicaid. “This pisses me off unlike anything else,” Walz told the *Star Tribune* in an interview. “They’re stealing from us… You’ve got to increase the penalty on these crimes. These are crimes against children, in my opinion.”
While his firm stance against public funds theft is appreciated, deterrence likely hinges more on the certainty of apprehension and prosecution than the length of any potential prison sentence.
State government appears to finally be addressing this issue. Consider the Department of Human Services’ (DHS) response since June, when *Reformer* reporter Deena Winter inquired about the exponential growth in autism treatment providers and associated spending over the past five years.
A DHS assistant commissioner responded, “I don’t think we are surprised or particularly disturbed by the rate of growth. We know that having early intervention and access to service is a really, really important part of putting these kiddos on a good trajectory for the rest of their lives.” (Digression: Can we please stop using the term “kiddos”?)
Following a public records request later that summer, DHS stated they were investigating 15 autism providers. By autumn, that number had risen to 29, approximately 9% of all providers. Then, on Thursday, DHS Commissioner Jodi Harpstead announced that the agency is currently visiting every single autism treatment provider. “We are digging further into cases where we note concerns and will conduct formal investigations if and where needed,” she stated.
One would assume verifying that providers are actually assisting children in need would be a standard part of the agency’s duties. However, the legislature never mandated licensing for these centers. This means anyone could potentially operate an autism treatment provider.
The parallels to the Feeding Our Future fraud scheme are striking. The search warrant application indicates at least a dozen defendants in that $250 million case have ties to autism treatment providers.
Minnesota: Land of opportunity? Perhaps more accurately, Minnesota: an easy target.
The tragic reality is that many children require assistance, and early intervention is crucial for a meaningful life. Yet, successive DFL administrations’ failure to prevent the theft of hundreds of millions of dollars from vital programs has likely eroded public trust in government. And who can blame them?
By J. Patrick Coolican, Minnesota Reformer, December 13, 2024
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