Stopping Waste and Fraud Could Save Hundreds of Millions

Over the last few years, citizens have become familiar with the problems plaguing many of Wisconsin’s public assistance programs, such as Wisconsin Shares and FoodShare. 

Separate audits have found those programs rife with fraud and waste and sorely in need of reform.  In an effort to make the needed changes and identify additional areas of waste, Governor Scott Walker earlier this year convened the Governor’s Commission on Waste, Fraud and Abuse.  This panel has been conducting a top-down analysis of our state government in order to root out inefficiency and save taxpayer dollars.

The commission has now released its preliminary report and its findings thus far are startling.  Overall, the commission has uncovered inefficiencies that could save state and federal taxpayers $266 million each year.  Those involved with compiling the report believe this is a conservative estimate and that savings could be even higher.  While I am excited to learn how we can improve efficiency and program quality while maintaining our current level of services in Wisconsin, it is deeply troubling to know and understand the true extent of the waste in our state government.

Specifically, the commission found that enhancing program integrity mechanisms in our public assistance programs could save $177 million annually.  Program integrity failure has become a huge problem as unintentional errors and intentional fraud have resulted in improper public assistance enrollment and eligibility and payments to providers.  A strong effort is needed to prevent and identify the problems in order to ensure that taxpayer dollars are spent appropriately and to focus benefits on those who need them most.

In addition to problems in our public assistance programs, the commission identified $4.8 million in annual savings that could be recovered from better management of state employee overtime pay in the Departments of Corrections, Health Services, Transportation and Workforce Development.

State taxpayers could save another $45 million through the consolidation of services by state and local units of government.  Additional savings could be realized if local units of government were to maximize shared services options with one another, and this is an issue that the commission will be exploring more in depth in the months ahead.

The final report of the Governor’s commission is due in January 2012, at which time I expect to see some modifications to the preliminary report.  Some of the recommendations for savings will require the passage of legislation, but others will simply be handled through administrative changes in the various agencies of our state government.  I have already introduced a bill to crack down on W-2 recipients who are caught using drugs, and I look forward to working with the Governor to usher additional needed reforms through the legislative process.

One thing is clear: it is a new day in Madison.  There has been a lot of political rhetoric and hot air over the last several years over rooting our waste, fraud and abuse in our state government, but nothing serious was ever done about it.  As a citizen, taxpayer and legislator, I am thankful that Governor Walker had the foresight and courage to identify specific areas of abuse, many of which will not be popular with people.  That is the type of leadership our government needs today, and I look forward to moving ahead with this effort and, in the end, helping him to implement whatever measures need to be taken in order to clean up the mess.

To contact me with any questions or comments or to sign up for my regular e-updates, please send an e-mail to Rep.Knodl@legis.wi.gov or call me at (608) 266-3796.