The Senate Finance Committee voted to recommend the confirmation of Erin Campbell as commissioner of Minnesota Management and Budget after a confirmation hearing focused on internal controls, fraud prevention and the agency’s role as the state’s chief financial officer.

Campbell, who has served at Minnesota Management and Budget (MMB) since July 2022 and as commissioner since August 2023, opened the hearing with a summary of her background and MMB responsibilities and then answered senators’ questions about oversight, internal controls and fiscal forecasting. “At the end of the day, we all work for the governor,” Campbell said, describing MMB’s role supporting agency financial practices and leading enterprise-wide human resources and collective bargaining.

The committee’s questions centered on two themes: how MMB is helping prevent fraud in state programs and how the agency communicates financial risks to the Legislature. Senators pressed Campbell on fraud figures publicized in recent reporting and on whether agency leaders or employees had been disciplined as a result. Campbell said MMB maintains an internal controls unit and an internal audit team that provide best practices, help agencies track Office of the Legislative Auditor (OLA) recommendations and support agencies’ implementation; she emphasized training and improving the culture of compliance across state agencies.

Campbell described steps MMB has taken to increase consistency and tracking of OLA recommendations, including a standard format for agencies’ response letters and more hands-on assistance. On fiscal notes — a process administered by the Legislative Budget Office — Campbell said MMB reviews fiscal notes for consistency and that her staff are available to answer legislators’ concerns. She told the committee that she first highlighted emerging budget pressure in the November 2023 forecast and continued that analysis in the February forecast.

Senators also asked about personnel accountability. Campbell said state employment uses progressive discipline and that, while specific personnel actions are often confidential, progressive discipline can lead to suspension or discharge when warranted. She told the committee that MMB itself “has not had an instance” requiring discharge for fraud, waste or abuse during her tenure, and that disciplinary records across the roughly 40,000 state employees are not always public.

Campbell outlined MMB accomplishments she attributed to her office and staff, including delivering the state comprehensive financial report with an unmodified opinion, obtaining a certificate of achievement in financial reporting for 38 consecutive years, maintaining top bond ratings, issuing $1.7 billion in new debt over two years at low rates, refinancing debt to save $53 million for the general fund and $16 million for the trunk highway fund, and efforts to reduce unnecessary degree barriers in hiring via Executive Order 23-14.

After roughly an hour of questions and discussion, Senator Pappas moved to recommend Campbell’s confirmation; the committee approved the motion on a voice vote and the chair announced the motion prevailed. The recommendation will be transmitted to the full Senate for final confirmation.

Votes at a glance:
Senator Pappas moved to recommend confirmation of Erin Campbell as commissioner of Minnesota Management and Budget; motion prevailed on a voice vote. (No roll-call tally recorded in the committee minutes.)

The committee hearing also included extended discussion about fraud in state-funded programs (much of which, senators noted, involves private contractors and vendors) and about retention and turnover in state employment; Campbell said the state’s employee turnover rate has fallen to about 5.5% and described ongoing work on onboarding, leadership competencies and employee development to improve retention.

The committee adjourned after the vote; the recommendation will be forwarded to the Senate for final action.