Some Democrats had concerns about Walz's pick for Human Services leader before she was ‘demoted'

Some Democratic Senators weighing whether to confirm the head of Minnesota's embattled Department of Human Services had concerns about Gov. Tim Walz's pick before he decided to reshuffle leadership of the agency.

Shireen Gandhi has been acting as temporary commissioner of the agency for more than a year as the department grapples with Minnesota's sprawling Medicaid fraud problem. Walz formally appointed her to the top job in February, but on Monday, May 4, on the eve of Gandhi's confirmation hearing, he moved her to a deputy position.

Walz named John Connolly, the state's Medicaid director, to her post instead.

Republicans swiftly derided the 11th-hour reshuffling of Gandhi, "demoted" from the job, which canceled Gandhi's hearing in front of the Senate Health and Human Services Committee. A committee vote to confirm Gandhi would have moved the decision ahead to the full Senate.

Democrats hold a 6-4 majority on the committee, meaning they didn't need any Republican votes to move Gandhi's confirmation forward, which required a simple majority vote. But two DFLers said they had not decided how they would vote before the committee, wanting to ask questions of Gandhi.

"I appreciate the availability and responsiveness of Commissioner Gandhi, but I still had concerns," said Sen. Rob Kupec, DFL-Moorhead.

Sen. Liz Boldon, DFL-Rochester, said while she "had concerns about Commissioner Gandhi's performance," she was looking forward to asking questions in the hearing.

Sen. Jim Abeler, R-Anoka, said that though he heard concerns from other members, he thought Gandhi would have enough support for the committee to advance her nomination. He hadn't decided how he'd vote either, he said, and wanted to hear more about how Medicaid recipients were receiving support as the agency works to tamp down on fraud.

"This is just one more example of a hasty decision that has been made in the name of fighting fraud," Abeler said, adding that some of the DHS' efforts to improve program integrity have harmed providers and Minnesotans who receive Medicaid services.

A Senate GOP spokesperson said she was unaware of any other Republicans who planned to vote to confirm Gandhi.

Allegations of widespread fraud in Medicaid-funded social service programs have plagued Minnesota for months, with state and federal officials identifying 14 programs that help Minnesotans with everything from housing to transportation as being vulnerable to fraud.

The scandal has put the DHS, which oversees the programs, at the center of scrutiny from state lawmakers. The agency has a $25 billion annual budget and about 2,300 employees.

Sen. Jordan Rasmusson, R-Fergus Falls, the Republican lead on the separate Human Services Committee, said in a statement: "Minnesotans were told Shireen Gandhi's leadership would bring reform to DHS, yet now she is being shuffled to a different position so that Senate Democrats can avoid a confirmation hearing."

The committee's chair, Sen. Melissa Wiklund, DFL-Bloomington, thanked Gandhi for her service in a statement, saying she had "weathered unprecedented uncertainty." But, when asked by the Minnesota Star Tribune whether there was enough support among the committee members to advance Gandhi's nomination, she said it "wouldn't be appropriate to speculate."

Senate Majority Leader Erin Murphy, DFL-St. Paul, said in a statement Monday afternoon that Senate Democrats "have had tough questions for DHS leadership about fighting fraud and protecting the people who need services," but said Minnesota was less vulnerable to fraud than it was a year ago.

Sen. Alice Mann, DFL-Edina, said she planned to vote to confirm Gandhi, adding that she had been elevated to the job "in the middle of a dumpster fire."

"I felt that not confirming her would be a political vote to scapegoat someone," she told the Star Tribune. "I think that removing someone from a position who has experience would have left the people of Minnesota vulnerable."

The other DFLers on the committee - Sens. Omar Fateh and Lindsey Port - declined to answer questions through spokespeople on Tuesday.

Walz didn't comment on Gandhi's canceled confirmation hearing but said Minnesota had "made significant progress to strengthen programs and root out fraud."

While Gandhi is no longer up for the top job, she'll remain in charge of the department until at least early June as Connolly takes medical leave. In a memo from Connolly to Human Services employees, he said Gandhi and Andrew Johnson, a new deputy commissioner, will fill in while he undergoes treatment for colon cancer.

Connolly "is grateful for detection following a routine colonoscopy and urges everyone, where eligible, to be screened regularly and not wait," the agency said in a statement.

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