♪♪ >> Mary: WELL, AS YOU HEARD, FEDERAL CUTS AND FREEZES ARE ROLLING DOWN HERE TO THE STATE.

AND WE HAVE THE TEMPORARY HUMAN SERVICES COMMISSIONER, PART OF HER JOB IS FIGURING ALL OF THIS OUT AND MUCH MORE IN A STATE BUDGET YEAR.

SHIREEN GANDHI.

COMMISSIONER, TELL ME, FIRST OF ALL, WHAT IS THE LATEST OF WHAT YOU KNOW BIG PICTURE, START BIG PICTURE ON THE FEDERAL EFFECTS ON YOUR STATE BUDGET.

>> YEAH.

SO, THE MEDICAID, WHICH IS CALLED MEDICAL ASSISTANCE IN MINNESOTA, IS A VERY LARGE PROGRAM.

IT PROVIDES HEALTH FOR -- HEALTHCARE FOR ONE IN FOUR MINNESOTANS, BOTH MEDICAID -- >> Mary: THAT'S A LOT, ONE IN FOUR, REPEAT THOSE BIG NUMBERS.

>> ONE IN FOUR.

SO THAT'S MEDICAL ASSISTANCE AND MINNESOTACARE TOGETHER.

AND THE IMPACT, IT MAKES SURE THAT PEOPLE HAVE COVERAGE SO THAT THEY CAN BE HEALTHY AND THEN IN GREATER MINNESOTA, IT PROVIDES BETWEEN $1 AND $2 BILLION IN EVERY CONGRESSIONAL DISTRICT IN GREATER MINNESOTA.

IN TERMS OF THE ECONOMY.

>> Mary: I THINK WE SHOULD SAY THAT AGAIN, TOO.

$1 TO $2 BILLION IN THE CONGRESSIONAL DISTRICTS.

IT'S DIVIDED DOWN THE MIDDLE, DEMOCRATS, REPUBLICANS.

HOW IS THE ADMINISTRATION DOING IN TALKING TO THE MEMBERS OF CONGRESS?

BECAUSE THAT'S WHAT I'M HEARING BEHIND THE SCENES THAT ARE HELPING INFLUENCE SOME OF THESE CHANGES IN D.C. >> YEAH, I THINK, GENERALLY, OUR CONGRESSIONAL DELEGATION IN MINNESOTA IS VERY TUNED IN TO WHAT'S IMPORTANT IN MINNESOTA.

WE HAVE PROVIDERS, WE HAVE HOSPITALS, WE HAVE NURSING HOMES, OTHER PROVIDERS IN MINNESOTA THAT ARE THE CORNERSTONE OF THEIR COMMUNITIES THAT NEED FUNDING.

AND WE HAVE THE INVESTMENTS THAT WE MAKE IN MEDICAID IN MINNESOTA RE CRITICAL.

WE HAVE CHILDREN AND FAMILIES MAKE UP ABOUT 60% OF PEOPLE, ENROLLEES ON MEDICAID, BUT ONLY 22% OF THAT FUNDING.

OF THE SPENDING.

AND WHAT WE KNOW IS THAT CHILDREN WHO ARE ON MEDICAID GO TO SCHOOL MORE, THEY'RE HEALTHIER, THEY GO TO COLLEGE, THEIR ATTENDANCE IS BETTER, AND WHEN THEY ARE IN THE WORKING -- WORKPLACE, THEY'RE PAYING TAXES, AT MUCH HIGHER RATES THAN CHILDREN THAT DON'T HAVE HEALTHCARE COVERAGE.

>> Mary: SO THAT SOUNDS LIKE, YOU KNOW, THE SEED OF MONEY GOES FORWARD IN LOT F WAYS THROUGHOUT THE ECONOMY.

>> RIGHT, EXACTLY.

>> Mary: SO IT MUST BE HARD TO MEASURE WHAT THE IMPACT OF THESE CUTS COULD REALLY BE LONG TERM IN VARIOUS ASPECTS OF THE STATE?

>> YEAH.

WE'RE NOT SURE.

ALL WE KNOW IS THAT THE BIPARTISAN CONGRESSIONAL BUDGET OFFICE SAID ABOUT $880 BILLION NEEDS TO BE CUT, IF YOU DO BACK-OF-THE-ENVELOPE MATH, IT'S MAYBE $1.2 TO $1.THAN 6 ILLION ANNUALLY FOR MINNESOTA.

AND THAT'S ONLY IF CUTS ARE PROPORTIONAL ACROSS THE STATES.

>> Mary: AND YOU HEARD EARLIER, WE KEEP REMINDING OUR VIEWERS, THE STATE HAS TO BALANCE ITS BUDGET.

>> YES.

>> Mary: OR WE GO INTO A BUDGET SHUTDOWN THIS SUMMER.

WE'VE SEEN IT BEFORE.

THIS IS NOT AN IMPOSSIBLE THING TO SAY.

AND THAT PICTURE WAS ALREADY LOOKING DIFFICULT.

SO, EVEN TAKING THE FEDERAL UNKNOWNS OUT, HOW TOUGH WAS IT GOING TO BE TO BALANCE, THE HUGE PART OF THE STATE BUDGET THAT IS IS HUMAN SERVICES?

>> YEAH, NOBODY LIKES DOING THIS WORK IN A YEAR WHERE YOU NEED TO FIND SAVINGS.

NOBODY'S YOUR FRIEND, RIGHT?

BUT WE ALL HAVE TO BALANCE THE BUDGET.

WE HAVE TO WORK TOGETHER TO DO IT.

AND, SO, AT DHS, WHAT WE'VE DONE IS TRY TO FIND PLACES TO HAVE SAVINGS THAT DO THE LEAST HARM TO THE PEOPLE WHO NEED MEDICAL ASSISTANCE, WHO NEED CHILD CARE ASSISTANCE, WHO NEED THE SERVICES THAT WE PROVIDE.

>> Mary: WE'RE HEARING, YOU KNOW, NURSING HOMES ARE TAKING SOME OF THIS ON, THAT IT'S COUNTIES, WHAT DO YOU SAY TO THAT?

BECAUSE THAT PART OF THE STATE, RURAL MINNESOTA, NURSING HOMES, ALREADY HURTING.

>> CUTS AND TRYING TO FIND SAVES -- SAVINGS ARE PAINFUL FOR EVERYBODY.

WE'RE GOING TO HAVE TO WORK TOGETHER.

WE WILL BE WORKING WITH PROVIDERS, WORKING WITH COUNTIES, WORKING WITH PATIENT ADVOCATES TO SAY, HOW DO WE FIND A PATH FORWARD TOGETHER FOR THE FUNDS WE HAVE SO THAT WE HAVE A BALANCED BUDGET AT THE END OF THE DAY.

>> Mary: ONE OF THE CONCEPTS HERE, YOU KNOW, THERE'S A NEW COMMITTEE JUST FOCUSED ON FRAUD HERE, AND WE HEAR THAT IF WASTE, FRAUD AND ABUSE GET ADDRESSED AND TACKLED, MAYBE THAT COULD HELP SOLVE SOME OF THE PROBLEMS.

THERE HAS BEEN FRAUD.

YOU'VE HAD FRAUD ISSUES IN THE DEPARTMENT OR PROGRAMS THAT THE DEPARTMENT'S FUNDING.

WHAT DO YOU SAY TO THAT?

>> YEAH.

I AM APPY TO HAVE A COMMITTEE THAT IS FOCUSED ON FRAUD AND LOOK FORWARD TO PARTNERING WITH THAT COMMITTEE AND WITH THE LEGISLATURE AT THE DEPARTMENT OF HUMAN SERVICES, WE'RE REALLY FORTUNATE TO HAVE A STRONG INSPECTOR GENERAL, A LICENSING DIVISION.

>> Mary: THAT ALREADY EXISTS FOR YOU RIGHT NOW.

EVEN THOUGH WE'RE TALKING ABOUT ADDING ANOTHER ONE.

>> THAT ALREADY EXISTS.

AND 80% OF THE TIME WHEN YOU'RE HEARING ABOUT FRAUD BEING PROSECUTED, OUR INVESTIGATIONS WERE BEHIND THAT IN THE BEGINNING.

SO, WE ARE GLAD WITH WHAT WE'VE DONE, AND WE'D LOVE MORE TOOLS TO DO MORE, WHICH ARE IN THE GOVERNOR -- >> Mary: YOU WANT THAT LONG TERM?

>> NO THANK YOU.

>> Mary: SOMEBODY WHO HAS