Albany, N.Y., January 2- Following disturbing reports of widespread fraud involving taxpayer dollars in Minnesota, State Senator Tom O’Mara (R,C-Big Flats) has joined his colleagues in the Senate Minority Conference to call on New York Governor Kathy Hochul to immediately hire a private professional services firm to conduct an independent audit of state programs and services to ensure that public funds are only being distributed to authorized organizations and individuals, and utilized for authorized activities. 

In a letter to Hochul (see attached copy above), O’Mara and his colleagues wrote, “Given that New York administers comparable programs involving billions of taxpayer dollars, it is imperative that proactive measures be taken to ensure similar abuses are not occurring here. As recently as July, the U.S. Department of Justice uncovered a $68 million Medicaid fraud involving a Brooklyn operator who paid illegal kickbacks through social adult day care centers. There is little reason to believe this case represents an isolated incident. Accordingly, we urge you to immediately commission a comprehensive, independent audit of New York’s analogous programs to ensure that public funds are distributed solely to eligible families and legitimate service providers.”

The legislators additionally announced that the conference will be introducing legislation to require an independent audit of New York State government programs by a professional third party and to mandate that all findings of fraud or abuse will be promptly referred to appropriate law enforcement authorities.

Senate Minority Leader Rob Ortt said, “Governor Hochul should be alarmed by what is happening in Minnesota and she should be doing everything in her power to ensure it isn’t also happening here. If nothing is amiss, she shouldn’t be afraid to order the comprehensive, independent audit we are requesting. Doing it will identify problems and give taxpayers confidence their money isn’t being stolen. Failing to do it would be the latest instance of this governor demonstrating she is incompetent and unaccountable.”

O’Mara, Ranking Member on the Senate Finance Committee, said, "New York State taxpayers deserve to know, without a shred of doubt, that taxpayer dollars in this state are being allocated, distributed, and spent in the most responsible, effective, legal, and accountable ways. That's especially true for New York's Medicaid program, which has been plagued for far too long by abuse, fraud, and waste. It can't be tolerated anymore. This audit should be one of Governor Hochul's top priorities in the new year and it should be done without delay."

The call from the Senate Minority follows follow recent revelations of rampant fraud and abuse of taxpayer dollars uncovered by investigative reporting in Minnesota, including schemes that reportedly involved sham daycare centers. An independent audit is necessary to root out all similar schemes currently underway here in New York, including cases throughout the past year that found:

• $68 million in Medicaid fraud committed by a Brooklyn adult daycare operator uncovered by the federal Department of Justice last August;
• the State improperly paid over $2.6 billion in Medicaid premiums for people who do not live in New York;
• $13 million in Medicaid fraud for transporting patients to medical appointments; and
• $7 million in Medicaid fraud for fraudulent billing. 

O’Mara and others have long been warning that out-of-control state spending by Albany's majority leadership  has ballooned the state budget to $254 billion. At the center of this surge is Medicaid, which now costs New York taxpayers approximately $120 billion annually, more per capita than any other state in the nation. Yet despite this extraordinary level of spending, New Yorkers are not seeing better outcomes than residents of other states.

The Senate Minority Conference letter to Hochul concluded, “This issue is especially urgent given that dozens of counties across New York have already exhausted their allotted state funding for the Child Care Assistance Program. At a time when resources are strained, it is essential that available funds are protected and directed exclusively to those who truly need assistance. Moreover, with reports that your administration may advance a proposal for universal pre-kindergarten in the upcoming legislative session, ensuring these programs are efficient, transparent, and free from fraud should be a shared priority for all New Yorkers.”

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