It never stops.
Minnesota’s state government has lost billions of dollars of taxpayer’s money in recent years to fraud; let us call this Category 1. Then there is all the taxpayer’s money which is spent as intended, but those intentions are wasteful, the egregious examples receiving out not-coveted Golden Turkey award; let us call this Category 2. Then there is taxpayer’s money which is just lost through rank incompetence; let us call this Category 3.
KSTP reports on a scheme which started as Category 2 and moved into Category 3.
Category 2
In 2023, representatives of FlexForge appeared at the state Capitol asking for $10 million to create more than 160 jobs manufacturing electric car part at its facility in Brooklyn Park. “What we envision is bringing a clean energy hub to Minnesota,” said Jevne Micheau-Cunningham, CEO of FlexForge.
But, KSTP reports, “records obtained by 5 INVESTIGATES show FlexForge LLC was not registered with the Minnesota Secretary of State when it made its funding request and described itself as an established business with about 10 employees.”
Many businesses have to go to the bank for financing, some to friends, others to equity markets. Still others, often those with “green” somewhere in the prospectus, go to politicians to get money from you. And these were the halcyon fiscal days of 2023, when the DFL had a trifecta and a surplus of $18.5 billion to spend, so FlexForge got $1.5 million, courtesy of you, the hard-working Minnesota taxpayer.
Category 3
Alas, KSTP reports:
The funding came with reporting requirements. State law required FlexForge to submit information detailing how the money was spent and how many jobs had been created by last December.
The company missed that deadline.
Yet records show the Minnesota Department of Employment and Economic Development, or DEED, continued sending payments to FlexForge, including more than $300,000 after the reporting deadline had passed.
…
Two days after 5 INVESTIGATES contacted DEED about the missed filing, the state received the overdue report – roughly seven months late.
The filing primarily describes the company as one that is still in a design phase. It also appears to provide conflicting information about job creation, listing figures that range from one to six jobs.
FlexForge’s late report says state funding supported approximately 30,000 hours of engineering work used to design multiple products.
In text messages to 5 INVESTIGATES, a company representative urged the station not to pursue the story, writing that “FlexForge-type entrepreneurs should be and are applauded and celebrated. This is important to the healthy future of Minnesota and America.”
When asked for clarity on jobs created, the representative pointed to a table in the report showing a headcount of six in 2025, and four by year’s end.
That works out at about $250,000 of taxpayer’s money per job “created.” Perhaps this is why the company didn’t try to raise the money with debt or equity?
KSTP informs us that:
DEED acknowledged shortcomings in its oversight after being contacted by 5 INVESTIGATES.
In an email, the agency said it “should have ensured that FlexForge had submitted its report to the Legislature prior to sending payment.”
Whoops!
DEED is the department which administers Minnesota’s paid family and medical leave (PFML) program.
