Gov. Tim Walz signed a new executive order Friday in an effort to try and prevent fraud involving state government funds. It was accompanied by a package of proposals for the Legislature to consider to combat fraud and detect it earlier.

The executive order created a centralized state fraud investigations unit aimed at detecting, investigating and punishing people who commit fraud in state programs.

“It’s simply unacceptable,” Walz said of a series of fraud cases involving state funds. “It’s maddening and it makes Minnesotans and myself angry about this.”

The move comes six months after five people were convicted in Hennepin County in the first federal Feeding our Future fraud trial. Those five people were among dozens of others accused of stealing $250 million in taxpayer funds meant to help feed children, with more trials pending.

Also, recently, the FBI raided various therapy centers suspected of millions of dollars in fraud in autism programs.

“These are not just financial crimes against the state and against the taxpayers of Minnesota,” Walz said during a press conference. “These are crimes against children, and what we’ve seen in Minnesota is these crimes have basically targeted programs that either feed children or help children in need.”

The executive order creating the new fraud unit will be based in the Minnesota Bureau of Investigation and does not need legislative approval.

“Bringing the state’s top fraud and financial crime investigators together under that single structure pools our tools, expertise, resources, to create a consistent process to strengthen every single investigation,” BCA Superintendent Drew Evans said.

The governor also proposed a wide range of initiatives that would need legislative approval, including using artificial intelligence (AI) to detect and prevent fraud sooner, additional employees in the Department of Human Services to focus on fraud detection and prevention and a new “theft of public funds” statute that increases criminal penalties.

Republican legislative leaders were skeptical of the governor’s proposals.

“Creating a fraud bureau overseen by the same administration that allowed over a billion dollars in fraud means today’s executive action is nothing but smoke and mirrors,” said House Republican Speaker-Designate Lisa Demuth. “We need real change to crack down on fraud, and that starts with a process that is truly independent of the leadership that allowed fraud to run rampant over the last five years.”

She says House Republicans will propose their own set of fraud proposals.

“The executive action taken today by Governor Walz is too little and too late,” said Republican Senate Minority Leader Mark Johnson. “It remains to be seen if Walz can accept recommendations by the Office of the Legislative Auditor, hold his commissioners accountable, enforce the current laws and roles to combat fraud, or work with Republicans to pass and approve legislation that will need bipartisan support to pass. That’s the true test of whether Walz and Democrats are going to take fraud prevention efforts seriously.”

While Walz believes the package would help with stopping cases of fraud, he said the state needed to be more proactive in preventing it and that fraudsters would adapt, and, in turn, they would need to as well.

“Yes, we’re going to serve the people of Minnesota, but there needs to be a healthy sense of skepticism,” Walz said.

Political analysts say the proposals from the governor should just be the start of a wide range of steps to prevent fraud.

“I think the Republican’s main complaint with Walz has been a lack of or an ability or willingness to enforce the rules that we (already) have,” says Republican strategist Brian McDaniel in a segment recorded for “At Issue.”

Former DFL Party Chair Mike Erlandson says there also needs to be a focus on who is receiving state funding. “We’re giving away way too much money to too many groups, nonprofit organizations, that are not vetted at all,” Erlandson said.

You can see more on this story on “At Issue with Tom Hauser” at 10 a.m. Sunday.

Click here to read KSTP’s full coverage of the Feeding Our Future fraud case.