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Minnesota study finds fault with state agencies over pay adjustments

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Minnesota study finds fault with state agencies over pay adjustments


Yet another shortcoming of financial control has been found in Minnesota’s state government.

In a report released this week, the Office of the Legislative Auditor found that three state departments and Minnesota Management and Budget made mistakes in payments they made to employees to compensate them retroactively for raises they were due under a new labor contract.

As a result, many of the employees received inadequate compensation that took more than six months to recover, according to the OLA. In 30% of the cases that were found to be in error, the mistakes were not corrected. The OLA also found some employees were overpaid.

The report, now the third one within the past month uncovering financial management inadequacies in the state government, highlights limitations in the state’s payroll system, poor communication among state agencies, and an inability of those agencies to make payments to employees accurately and in a timely fashion.

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The departments that were audited include the state Departments of Corrections, Commerce, Natural Resources and Public Safety, and the audit focused on payments made between July 1, 2021, and June 7, 2022, following a labor agreement between those agencies and the Minnesota Law Enforcement Association.

According to the report, the overall conclusions of the audit were:

  • Minnesota Management and Budget did not have adequate internal controls over the parameters it established for the payroll system’s retroactive pay adjustment calculations.
  • The Department of Commerce complied with the legal requirements related to the retroactive pay adjustments that the OLA tested and had adequate internal controls to ensure compliance with those legal requirements.
  • The Departments of Corrections, Natural Resources, and Public Safety did not comply with the legal requirements related to the retroactive pay adjustments the OLA tested. Those departments also did not have adequate internal controls to ensure compliance with the legal requirements.

The OLA audit found those agencies either miscalculated or failed to resolve incorrect payments for 983 Minnesota Law Enforcement Association members of those agencies. This includes approving retroactive payments that the Department of Public Safety and the Department of Natural Resources knew were inaccurate for 234 employees.

The inaccurate payment totals for each agency range from $258 at the Department of Corrections to $28,911 at the Department of Public Safety.

While the payment totals are minuscule compared to payroll totals at each agency, the report comes on the heels of two OLA audits released earlier this year detailing mismanaged state agencies, including $250 million in fraud due to a lack of oversight by the Minnesota Department of Education regarding a food program and $205 million in unverified payments to people through a Frontline Worker Pay bonuses program in 2023.

When performing its audits, the OLA usually finds that an agency can improve a process, according to Deputy Legislative Auditor Lori Leysen. She said she could not think of a report her office released in the past few years that didn’t have at least one issue, though the severity levels have differed.

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“Our job is to really show where there are areas for improvement and to try to help the government find ways to make those improvements,” Leysen said.

In its report, the OLA recommended agencies adhere to legal requirements, fix inaccurate payments when known and strengthen internal controls.

Also included in the report are responses from four of the five audited agencies that agreed with the OLA’s report and said they would follow the recommendations.

A response from the Department of Commerce, which was found in compliance, was not included in the report.

The report will also be presented to the Legislative Audit Commission on Thursday, July 25, at 10 a.m. and livestreamed on YouTube.

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OLA Retroactive Payments Report by Mark Wasson on Scribd



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Minnesota leaders to provide update on climate action plan

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Minnesota leaders to provide update on climate action plan



Minnesota leaders on Wednesday morning will provide an update to the state’s climate action plan.

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The plan was originally published in 2022 and laid the foundation for more than 40 climate laws that passed in the Legislature in 2023. Wednesday morning’s announcement will lay the foundation for future goals.


How to watch

  • What: State and city leaders provide update to the state’s climate plan
  • When: Wednesday at 10 a.m.
  • Who: St. Paul Mayor Kaohly Her, MPCA Commissioner Katrina Kessler, and other business and state leaders
  • How to watch: You can watch live in the player above.

This story will be updated.



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Sen. Hoffman to return to Minnesota Senate after assassination attempt

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Sen. Hoffman to return to Minnesota Senate after assassination attempt


Minnesota State Senator John Hoffman is set to return to the Senate for the 2026 Legislative Session on Feb. 17 after recovering from an attempted assassination.

Senator Hoffman returns with gratitude

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What they’re saying:

Hoffman expressed deep gratitude for the support he received from family, friends, and colleagues during his recovery.

“The support my family and I have received over these past months has been extraordinary,” Hoffman said in a statement, while emphasizing that his return is driven by a sense of calling rather than obligation.

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Hoffman plans to resume his duties as Chair of the Senate Human Services Committee, focusing on Medicaid program integrity and ensuring continuity of care for vulnerable populations in Minnesota.

In his statement, Hoffman highlighted the bipartisan outreach he received, noting that “in moments like these, politics fades and humanity takes over.”

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He also appreciated the genuine concern from colleagues across the political spectrum, which reinforced his commitment to responsible leadership.

Hoffman encouraged his constituents in Senate District 34 to continue reaching out with concerns and ideas as the legislative session begins. He expressed his gratitude to the people of District 34 and Minnesotans for their compassion and support.

The backstory:

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At about 2 a.m. on June 14, 2025, a man posing as a law enforcement officer was at Hoffman’s front door. He, his wife Yvette and their daughter, Hope, were home at the time. They came to the door to see what was going on when the suspect opened fire.

Both John and Yvette Hoffman were shot multiple times.

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The incident was allegedly a politically-motivated attack, for which Vance Boelter is currently charged and in custody while he awaits trial.

“Survival was my only, the priority I had was survival, that was the only priority going on in my head,” Hoffman told FOX 9 in January. “To me it was also, ‘Am I dreaming this? Is this really happening?’ Once it happened, when he wasn’t who he said he was, then it was survival.”

READ MORE: John Hoffman reflects on June 14 shooting: ‘I had 9 holes in my body’

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The Source:  Information from a press release by Senator John Hoffman and past FOX 9 reporting.

Minnesota lawmaker shootings



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Hawley targets Minnesota fraud, CCP-linked money at Senate hearing: ‘Taxpayers robbed blind’

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Hawley targets Minnesota fraud, CCP-linked money at Senate hearing: ‘Taxpayers robbed blind’


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A Tuesday Senate hearing is set to expose billions in fraud in Minnesota as well as foreign backing for anti-ICE agitators across the country, Sen. Josh Hawley’s office told Fox News Digital.

The hearing before the Homeland Security Subcommittee on Disaster Management, which Hawley chairs, will feature testimony from a Minnesota state senator and representatives of third-party watchdog groups. Systemic fraud backed by transnational groups has stolen billions from child nutrition, FEMA assistance, housing, Medicaid and substance abuse services, the testimony is expected to say.

“American taxpayers are getting robbed blind—billions stolen in Minnesota, and hundreds of billions siphoned out of the country by transnational criminals every year—all while foreign actors coordinate chaos on our streets,” Hawley told Fox News in a statement.

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“Enough is enough. It’s time to root out the dark money and shut down the foreign influence,” he added.

CONGRESS OPENS ‘INDUSTRIAL-SCALE FRAUD’ PROBE IN MINNESOTA, WARNS WALZ DEMANDS ARE ‘JUST THE BEGINNING’

Sen. Josh Hawley, R-Mo. will chair Tuesday’s hearing investigating federal assistance fraud in Minnesota. (Chip Somodevilla/Getty Images)

Minnesota State Sen. Mark Koran’s testimony will highlight the role Minnesota Gov. Tim Walz and Attorney General Keith Ellison played in allowing fraud to fester and spread across the state in what he calls the “largest expansion and fastest acceleration of fraud this country has ever seen.”

Witnesses are expected to say that senior officials were not only aware of the fraud but have also taken steps to hide it from public scrutiny by backdating audit records and cracking down on whistleblowers.

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A Minnesota Department of Human Services (DHS) whistleblower told Fox News that she was the victim of a “smear campaign” after raising red flags about fraud in the state since 2019.

MINNESOTA DHS WHISTLEBLOWER DETAILS ‘SMEAR CAMPAIGN’ AFTER REPORTING FRAUD CONCERNS TO STATE

Minnesota Gov. Tim Walz canceled his plans to run for re-election amid Minnesota’s fraud scandal. (Chip Somodevilla/Getty Images)

Federal prosecutors estimate that up to $9 billion was stolen through a network of fraudulent fronts posing as daycare centers, food programs and health clinics. The majority of those charged, so far, in the ongoing investigation are part of Minnesota’s Somali population.

In addition to Koran, lawmakers will hear testimony from Seamus Bruner, the vice president of the Government Accountability Institute; Dylan Hedtler-Gaudette, the acting vice president of Policy & Government Affairs for the Project on Government Oversight, and Haywood Talcove, the CEO of LexisNexis Risk Solutions, Government.

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Talcove’s testimony will focus on transnational groups that he says are exploiting federal assistance programs and using stolen funds support “organized crime, drug trafficking, human exploitation, and, in some cases, terrorist-affiliated or hostile foreign actors.”

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Bruner’s testimony will also focus on foreign influence, linking the funding streams to foreign actors, including individuals with ties to the Chinese Communist Party.



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