Minnesota state budget and finances

From Ballotpedia
Revision as of 11:03, 24 October 2013 by AmandaLeighAlbert (Talk | contribs)

Jump to: navigation, search
Minnesota state budget

Flag of Minnesota.png
Budget calendar:  Biennial
Fiscal year:  2014-2015
Financial figures
GF expenses:  $38.3 billion[1]
GF revenue:  $38.4 billion[1]
Other state budgets
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

In the state of Minnesota, Governor Mark Dayton signed the state's budget for FY2012-13 into law on July 20, 2011, after a 20 day state government shutdown.[2] The shutdown occurred after the governor and legislature failed to negotiate a deal on on how to close a $5 billion deficit in the FY2012 state budget in which the governor favored increasing taxes and the legislature preferred spending cuts.[3]

On July 14, 2011, the governor and lawmakers reached a deal to end the standoff. The governor accepted the Republicans' offer that balanced the budget by $1.4 billion budget difference by delaying payment of school funds and borrowing against the state's tobacco settlement. In exchange, Republicans agreed to drop all controversial policy positions as well as agreeing to not pass a $500 million bonding bill.[4][5] Following a special legislative session on July 19-20, 2011, lawmakers worked through the night to pass the nine budget bills.[6] The governor signed them hours after they were passed and the $35.9 billion budget took effect.[2] The enacted budget can be found online. [7]

The state operates on a biennial budget cycle, which currently encompasses FY2012 and FY2013.[8] The state's fiscal year begins July 1.

For FY 2012, Minnesota had a total state debt of approximately $69,199,871,000, when calculated by adding the total of outstanding official debt, pension and other post-employment benefits (OPEB) liabilities, Unemployment Trust Fund loans, and the FY2013 state budget gap.[9] The state debt was down slightly from the FY2012 state debt total of $70,806,990,000.[10] Minnesota's total state debt per capita was $12,946.99.[11]

Federal Aid to State Budget

The chart below represents how much of the state’s budget came from the federal government. The number was the corresponding ranking in relation to the rest of the nation (if #1, the state receives the highest percentage of federal funding in the nation):

State 2008 2009 2010 2011
Minnesota 24.44% (#42) 27.56% (#42) 31.89% (#42) 29.35% (#42)
  • Figures were calculated by dividing each state’s intergovernmental revenue into its general revenue.[12][13]

Fiscal Year 2014-15 State Budget

Gov. Mark Dayton presented his proposed FY2014-15 state budget of $38 billion on January 22, 2013.

Under the proposed budget, the governor would delay the repayment of the $1.1 billion owed to K-12 public schools until 2017.[14] It did increases K-12 funding by $52 per student.[15]

The governor's administration claimed that the proposed budget features $225 million in spending cuts, but a week later that was revealed to be incorrect. A Minnesota Management and Budget spokesman said that there were actually only $167 million was actual spending reductions, with the remaining $58 million being "reallocations" within state agencies to other programs.[16]

Tax Overhaul

Under the governor's proposal, a tax overhaul would occur in the state. A variety of consumer and business services — haircuts, tattoos, legal bills and accountant fees among them — would be subject to the state's sales tax but the state's overall sales tax rate would decrease from 6.875 percent to 5.5 percent.[17]

The plan would increase the income tax increase on earnings above $150,000 for single filers or $250,000 joint.[16]

The governor would raise tobacco taxes but not those for alcohol. The cigarette tax would increase from $1.23 to $2.17 per pack.[14]

The proposed budget also included a $500 property tax rebate for homesteads and farmsteads across the state,[14] costing a total of $1.4 billion.[15]

Fiscal Year 2012-13 State Budget

See also: Archived Minnesota state budgets

Gov. Dayton signed the $35.7 billion biennial state budget into law on July 20, 2011. The budget changed funding to education and also to health and human services.[18]

In December 2011, state budget officials delivered a surprise estimate of a $876 million surplus for the remainder of the state's budget due to revenues $358 million higher than expected and spending was $205 million less than prior estimates. By law, surpluses were supposed to go into two state funds: a budget reserve and a cash-flow account.[19]

Health and Human Services

The Health and Human Services portion of the budget was expected to be $11.3 billion.[18]

The budget cut or delayed millions of dollars in payments to hospitals, doctors and health plans. The budget penalized hospitals that don't reduce the number of patients who reenter the hospital within 30 days of discharge and gives vouchers to move about 7,200 lower-income adults from the state-subsidized MinnesotaCare program onto private health insurance.[18]


On April 5, 2012, Gov. Dayton vetoed a Republican plan to use state reserve to repay schools the $2.4 billion the state owes them due to accounting shifts and forced borrowing to avoid tax increases or deeper cuts elsewhere in the budget..[20]

Under the budget, $700 million in funds due to districts statewide were delayed until the next two-year budget cycle..[18] The $700 million delay was in addition to a previous delay of $1.4 billion that had yet to be repaid.[21]

The delay of the funds would cost the individual districts. As of Dec. 1, 2011, at least 26 districts reported they would have to borrow a total of $382 million to meet cash needs, incurring $3 million in financing costs.[22]


The state closed out the 2012 fiscal year with $336 million more in revenue than was forecast in February.[23]

State leaders revised that figure and announced on Feb. 29, 2012, that the state had a surplus of $323 million. The forecast document said that the first $5 million of the new surplus would refill the reserves back up to $653 million. Whatever amount remains of the surplus would be used toreduce the school payment shift put in place to close the budget deficit.[24]

Bond Sale

A state authority planned to finalize a bond sale late in mid-Nov. that leverages a portion of the state's tobacco lawsuit settlement reached in 1998. The state would sell $787 million worth of bonds, which would direct $640 million to patch a budget deficit and $150 million toward a debt reserve fund, set-up costs and other expenses that limit the amount available for budget purposes. The highest annual debt costs came toward the beginning, when the state's budget was already anticipated to be in rough shape. Officials were projecting $1.2 billion in total overall debt costs. Through the tobacco securitization bond sale, the state gave up rights to a big chunk of tobacco payments through 2031. Minnesota received about $170 million in 2010.[25]

Transfer of Funds

The budget included a requirement that the Counties Transit Improvement Board pay more for regional transit operations over the next two years, meaning $15 million in additional expenses for the board whose funds come from a sales tax collected in five metro counties - Anoka, Dakota, Hennepin, Ramsey and Washington.[26]

Credit Rating

Despite ending the standoff, Moody's Investor Service down graded its outlook on Minnesota from stable to negative in light of the budget's reliance on one-time funds. Moody's said that Minnesota faces "significant obstacles" in achieving a structurally balanced budget in the next cycle as a result of those actions.[27] Moody's rates the state Aa+, and Fitch Ratings lowered the state's credit ranking to AA+ in July 2011. Standard & Poor's rated the state its highest rating of AAA,[28] but downgraded the state to AA+ in September 2011, citing “continued structural imbalance” in the state’s budget.[29]

Rainy Day Fund

At the start of FY2013, the state's reserve and cash flow account were funded full strength at roughly a combined $1 billion, due in part of budget surpluses.[30]

State Government Shutdown

The budget was signed into law on July 20, 2011, after a 20 day state government shutdown.[2] The governor and legislature failed to negotiate a deal on the FY2012 state budget before the start of the fiscal year on July 1, 2012, and so on that date the state government shut down. The Democratic governor and Republican-controlled legislature could not reach an agreement on how to close a $5 billion deficit, with the governor favoring taxes and the legislature favoring spending cuts. This was the second state government shutdown in six years.[31]

The House signed off on the $13.6 billion K-12 education bill just over an hour after it was made public, and it contained includes a provision to delay an additional $700 million in school payments, a key part the final budget deal struck by Dayton and Republican leaders. [32] The passed budget relies on that money delayed from going to schools and from future payments on a legal settlement with tobacco companies to erase a $5 billion deficit through mid-2013. [2]

Deal Reached

A special legislative session began on July 19, 2011, and lawmakers worked through the night and passed the nine budget bills.[33]

On July 14, 2011, the governor accepted the Republicans' offer of June 30, 2011, that balances the budget by $1.4 billion budget difference by raising $700 million through bonds tied to a 1998 tobacco settlement and delaying $700 million in payments to school districts until FY2013 so that money isn’t counted in FY2012.[34] In exchange, Republicans agreed to drop all controversial policy positions as well as their proposal to 15 percent of the state's work force and not pass a $500 million bonding bill.[35][34]

Republicans had initially rejected in January the governor's bonding bill which provided $500 million for infrastructure and building projects, including construction and improvements at the state public universities and colleges, renovation of the Mayo Civic Center in Rochester and a new stadium for a minor league baseball team in St. Paul. Republicans agreed to the bonding bill as part of the budget compromise.[34]

Lawmakers said on Thursday, July 14, 2011, that they would hammer out the details of the deal and the move the bills through the required special session. Once they were approved the shutdown would officially end.[36]


"The governor was the only one who can call a special session, so he's in the driver's seat as to how long this shutdown lasts," Mr. Brodkorb said.[37] On June 23, 2011, Ramsey County District Judge Kathleen Gearin rejected the governor's request for a mediator to resolve the budget crisis, and she also rejected an argument by four GOP senators that she should order Dayton to call a special legislative session.[38] The governor had rejected Republican proposals to pass a "lights-on budget" and saying instead that he would not call a special session until an overarching agreement was reached.[39]

Gov. Dayton met with Republican lawmakers on July 5th, 6th and 7th, but the shutdown continued. On July 6, the governor offered Republicans the choice of offered the choice of hiking the state cigarette tax by $1 a pack or raising income taxes on Minnesota residents earning more than $1 million a year. Republicans rejected that choice.[40][39] On July 7, the governor met with Republican Senate Majority Leader Amy Koch and House Speaker Kurt Zellers. They discussed the K-12 budget but did not try to negotiate an overall budget deal.[41] On July 11, 2011, the governor offered to the millionaires tax in exchange for Republicans agreeing to other tax increases. Republicans rejected the offer.[42]

Former Democratic U.S. senator Walter Mondale and former Republican governor Arne Carlson formed a bipartisan, unofficial committee of former legislators and budget officials on July 5, 2011 to come up with a budget proposal. Gov. Dayton [39] The committee released a proposal on July 7, 2011. The plan proposes cutting projected state spending by $3.6 billion, which they said would amount to a 1.5 percent increase in each of the next two years, and also increasing income taxes on all earners and on alcohol and tobacco taxes to generate $1.4 billion. [43] The plan states "no shifts or gimmicks should be used to balance the budget." Under the plan, the overall two-year budget would be $35.6 billion although Republican lawmakers want a budget of no more than $34 billion.[44] Dayton issued a statement praising the commission for its work. He said the plan was in line with his budget proposal, but he took issue with the income tax hike on every Minnesotan.[45][46]

Millionaire Tax

The Governor wanted to make budget cuts and raise some taxes, whereas Republicans opposed increasing taxes and rely on cuts. Gov. Dayton, a Democrat, wanted to spend $35.8 billion, funded in part by a $1.8 billion tax increase on the state’s top earners, whereas Republicans who hold House and Senate majorities said they would not spend more than $34 billion and they rejected any tax increase.[47] Dayton's proposed "millionaire's tax" would mean that the 7,700 people making more than $1 million a year in Minnesota to pay higher income taxes, either permanently or as a two-year surcharge, which would generate $500 million to $700 million in revenue. The governor proposes adding 2 percent to the existing 7.85 percent income tax. That additional would put the state third in the nation for top income tax bracket tax. Minnesotans who make more than $1 million a year already were projected to pay $1.081 billion in state income tax for the 2011 tax year. [48]

Republicans defeated the governor's income tax measure on May 17, 2011, and the governor warned that he was prepared to take the budget fight into next year to get a tax increase through the Legislature.[49]

Impact of Shutdown

As a result of the government interruption, Fitch Ratings downgraded the state's bond rating from AAA to AA+ and cited as a result the "increasingly contentious budgeting environment." [50]

The shutdown resulted in more than 20,000 employee layoffs. State employees were laid off rather than furloughed, so that they could collect unemployment during the shutdown. They did not receive severance packages.[51] Many lawmakers were still receiving pay although Forty-eight out of 134 House members and 14 senators deferred their pay — 31 Democrats and 31 Republicans. Employees deemed to be "essential" and still on the job were also still being paid. Included in the list of "essential employees" were the governor's chef and housekeeper.[52]

The stoppage meant the end non-emergency road construction, closure of the Capitol and stopped child-care assistance for the poor. More than 40 state boards and agencies were closed to working with only skeleton staff.[51]

The Minnesota Department of Transportation shut down more than 80 highway rest stops by early afternoon on June 30, 2011, and state parks were closed and had been since the start of the July 4th weekend.[53] Minnesota was losing an estimated $200,000 a day from the closure of state parks alone. Each day of the closure, the state loses $1.25 million a day in lottery sales. The Department of Transportation was forfeiting between $40,000 and $50,000 a week from uncollected MnPass tolls.[39] The Department of Natural Resources had estimated tourism losses of $12 million for each week the government was closed. [54]

Critical services, including the State Patrol, prisons, disaster response and federally funded health, welfare and food stamp programs, would continue.[55] As of July 6, 2011, a judge had been determining what services may continue during the shutdown and had been holding hearings with individual social services groups that were waiting on inspections, licenses and background checks. The judge granted an exception to food banks and the governor requested on July 5, 2011, that the list be expanded to include special-education aid, addiction and mental health services, services for people with HIV and victims of domestic violence, sexual assault and other crimes.[39]

In anticipation of a government shutdown, on June 13, 2011 Lori Swanson, the state Attorney General, asked Ramsey County District Court to rule that some core functions of state government must continue even if a lingering stalemate over the budget forces it to shut down on July 1.[56]

Ramsey County Chief Judge Kathleen Gearin ruled on July 29, 2011, that core functions of government must continue in the event of a shutdown, but found that the court lacked the authority to order funding for the functions beyond the basic functions. The functions that would continue include basic care for Minnesotans in prison, nursing homes, veterans home and state hospitals, as well as funding for health care, computer system maintenance and internet security[57]

Governor's Proposed Budget

The state's budget forecast anticipated a shortfall over $5 billion over two years starting in July 2011.[58] Estimates by state finance officials show that maintaining all programs currently mandated by state law would cost $5.8 billion more in the next biennial budget than the $33 billion the state spent in the prior biennium.[59] Gov. Mark Dayton presented his budget to the legislature on Feb. 15, 2011, and addressed the state's $6.2 billion deficit.[60] Minnesota's budget hole shrank by $1.2 billion thanks to a 2 percent federal payroll tax break passed by Congress in December 2010. In response Dayton announced he was withdrawing a proposal to impose a 3 percent surcharge on incomes over $500,000 a year and dropping $200 million in proposed cuts to health and human services programs. It was an announcement not well met by Republican members of the legislature who believed more cuts should be made. [61]

The budget proposal included cutting $950 million in planned spending from health care and higher education, among other categories, while increasing spending on K-12 education by $465 million.[60] In total the state budget reduces spending by $2.4 billion. [62] Lawmakers on June 6, 2011 criticized Gov. Dayton for failing to specify what many of those other budget cuts would be.[63]

Tax Increases

The governor said he wanted to raise the state's top income-tax rate temporarily to 13.95 percent for single-filers making more than $85,000 annually, which would be the highest in any state. The governor also proposed raising the top rate on couples earning more than $150,000 of taxable income to 10.95%, up from 7.85% as well as adding a 3% surcharge on taxable income above $500,000 for the next two years. The governor expected the tax to generate $4.1 billion in new revenue. The governor also proposed creating a new, higher property-tax bracket for homes valued at more than $1 million.[60] Gov. Dayton's proposed income-tax increases were expected to generate $2.8 billion of new revenue.[60]

The governor also wanted to require anyone living in Minnesota for more than 60 days per year to pay a prorated portion of their income taxes in Minnesota, which would change the current law requiring only those who live in Minnesota for more than six months of the year to pay state income taxes. The change would generate $15 million a year, according to state Department of Revenue projections.[64]

Within weeks of Gov. Dayton's budget, the Minnesota Senate rejected his call to raise taxes on the wealthiest citizens. The Senate voted 63-1 against Dayton's proposal, with all Republicans and all but one Democrat joining in the majority. [65] Senate Republicans argued that Dayton's proposed tax increases would hurt the state's economic recovery. [66]

Legislative Budgets

The legislature adjourned its regular session on May 23 pursuant to the state constitution.[67] A special session had not brought about an agreed upon budget by June 8, 2011.[68] If there was no budget by July 1, the state's government would begin shutting down.[69]

On June 6, Republicans proposed increasing spending on schools, courts and public safety by $110 million, which was closer to Gov. Dayton's proposed spending, although Republicans did not detail what would be cut to increase spending in those areas. [63] The next day, the parties were still quite far apart as of June 7, 2011, and some feared a state government shutdown, which would happen if an agreement was not reached by July 1, 2011.[63]

The House and Senate each passed budget bills, but they had not been reconciled and Gov. Dayton said that he would not start negotiating until Republicans sent him a complete, reconciled budget from both chambers. Republicans oppose raising taxes, but the governor was committed to increasing taxes on top earners.[70]

The Senate passed a bill on Feb. 3, 2011, eliminating $930 million from the state budget with cuts to colleges, local governments and public health programs.[71] The Republican legislative leadership had said any tax increases to fix the budget hole were off the table. [72]

In contrast to the governor's proposal to increase the tax rate for the wealthiest state residents, the House Tax Committee passed a bill that would cut income taxes for all Minnesotans, but could also force property tax hikes in cities across the state.[73]

The House passed $1 billion in cuts which were similar to temporary spending cuts imposed by former Gov. Pawlenty.[74][75] The bill reduces aid payments for local governments and cuts funding for colleges and community health programs.[74] Gov. Dayton said that they were "piecemeal cuts and partial solutions," that address only a portion of the state's $6.2 billion two-year budget hole.[75]

The Republican caucus was expected to introduce its budget proposal in the second week of March. Health and human services funding was expected to be hardest hit because it represents a third of general fund spending. HHS funding was slated to increase by nearly $4 billion in the next biennium. [76]

The budget battle between the legislature and governor was likely to come to a veto, because the Republicans were seeking deep cuts in aid to the Twin Cities and steep reductions to health and human services, which could boot thousands of Minnesotans off public programs. [77] The budget battle could last well into April, 2011.

House and Senate budget writers cut $1.8 billion from health and human services. [78]

Wisconsin Tax Reciprocity

Minnesota legislators were looking to reinstate tax reciprocity with Wisconsin. Many residents of both states work in the other state. Without reciprocity, thousands of people in both states this spring were filing tax returns to both Wisconsin and Minnesota. There was a reciprocity agreement between the two states, however it was killed after Wisconsin fell 17 months behind paying Minnesota the $60 million it was owed. [79]


While many states were looking to cut the number of Medicaid recipients, Minnesota had received permission to expand its rolls by 95,000. The expansion began March 1. 83,000 people who were enrolled in two state-funded programs, along with 12,000 uninsured, enrolled in Medicaid. Gov. Dayton told The Hill that Medicaid had more comprehensive benefits and lower co-pays than the the state programs — General Assistance Medical Care and MinnesotaCare. [80]

Gov. Dayton approved the expansion, something former Gov. Tim Pawlenty refused to did. Republican legislators opposed the move saying it ties up too much state money. Dayton said he would veto any legislation that attempts to reverse his decision. [81]

Budget transparency

Disregarding the mandate of Minnesota House File 548, State Government Omnibus bill (2007), Minnesota did not launch a spending database until March 2009 (over one year after the mandated launch date).[82][83] According to an article in the Star Tribune, the Department of Administration had not launched the website because "An old state computer system, which was being updated, was not Internet-friendly. It's not clear if the new computer system would include a spending database because the Legislature didn't appropriate the $1 million to $1.5 million needed for it."[84]

The actual expense of building the site was far less than initially expected. Curt Yoakum, Legislative Liason for the Department of Management and Budget in 2009, said that the spending database was developed with existing resources and a mere $5,000 consulting fee. Apparently the $1 million plus estimate was a bit high. The site's designers even overcame an antiquated accounting system that appeared unsuited to internet.

According to a press release from the Office of the Governor, "The site was created by Minnesota Management and Budget (MMB) and offers on-line, round-the-clock access to data on state payments for schools, local governments, contractors and other vendors. With just a few clicks, citizens can access detailed information on most state spending. The data was supplied by the state's accounting system and updated nightly."[82]

The Minnesota Office of Grants Management had made a website where individuals can find out grants that were available.[85]

Additionally, the Minnesota State Arts Board lists the recipients of its awards.[86] 2008 Media Grants, for example, were distributed to twelve individuals and cost a total of $59,000. They included grants for projects such as:
  • Nathaniel H. Freeman, Minneapolis

$6,000 — for a sixteen-stage video installation that shows the opening scene of sixteen imagined narratives, all informed by the people and events of his northeast Minneapolis neighborhood

  • Heather R. Johnson, Minneapolis

$5,000 — for a documentary film, titled, “No Ugly Trees,” that explores women's body and self-esteem issues

  • Daniel J. Lundquist, Bloomington

$5,000 — for creative time to finish hand coloring “Boris,” an animation about overcoming difficult circumstances to live a happy life[87]

Government tools

The following table was helpful in evaluating the level of transparency provided by a state spending and transparency database:

Criteria for evaluating spending databases
State Database Searchability Grants Contracts Line Item Expenditures Dept/Agency Budgets Public Employee Salary
TAP Minnesota Y
600px-Yes check.png
600px-Red x.png
600px-Yes check.png
600px-Red x.png
  • The site provides salary schedules, as well as compensation totals for executive branch agencies and departments. Individual employee salaries, however, were not provided.[88]
  • Agency requests were included with final budget documents.[89]
See also: Evaluation of Minnesota state website

Limitations and Suggestions

Minnesota's "Transparency and Accountability Project" site lacks information about state employee salaries.[90]

Multi-Measure Budget Transparency Profile

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Minnesota, which measures state transparency as of September 2011 using indicators from a range of organizations. These indicators measure both website transparency and other recognized facets of governmental transparency. In addition, IGPA presents four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[91][92]

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[93][94]

Budget background

Minnesota operates on a biennium, covering two fiscal years at a time. A fiscal year begins on July 1 and ends on June 30 of the following year, however the biennium begins July 1 of odd-numbered years. The process of creating a new state budget begins in even-numbered years. All state agencies submit budget requests for the next biennium along with actual expenditures and receipts for the two most recent fiscal years. The Governor then submits a three-part budget to the Legislature. Part one was a budget message, part two a detailed operating budget, and part three a capital expenditures budget. Parts one and two were presented to the legislature in January or February of odd-numbered years and part three was presented to the legislature in January of even-numbered years. Both the House and the Senate examine, modify, and enact the final budget. [95] [96]

Minnesota's “unallotment” law[97] specifies conditions under which the executive branch can reduce expenditures to prevent an anticipated budget deficit. The key part of the law provides:[98]

  • (a) If the commissioner [of finance] determines that probable receipts for the general fund would be less than anticipated, and that the amount available for the remainder of the biennium would be less than needed, the commissioner shall, with the approval of the governor, and after consulting the legislative advisory commission, reduce the amount in the budget reserve account as needed to balance expenditures with revenue.
  • (b) An additional deficit shall, with the approval of the governor, and after consulting the legislative advisory commission, be made up by reducing unexpended allotments of any prior appropriation or transfer. Notwithstanding any other law to the contrary, the commissioner was empowered to defer or suspend prior statutorily created obligations which would prevent effecting such reductions.

Budget figures

The following table provides a history of Minnesota's expenditures and gross domestic product (GDP).

Fiscal Year Expenditures (billions) GDP (billions)
2000 $35.4 [99] $185.1 [99]
2001 $38.0 [99] $190.2 [99]
2002 $40.5 [99] $198.6 [99]
2003 $41.3 [99] $208.2 [99]
2004 $42.1 [99] $223.5 [99]
2005 $42.9 [99] $232.0 [99]
2006 $44.8 [99] $242.1 [99]
2007 $46.7 [99] $255.0 [99]
2008 $48.7 [99] $268.5 [99]
2009 $50.8* [99] $282.8* [99]

Accounting principles

See also: Minnesota government accounting principles

Minnesota auditing authority was divided between the State Auditor and the Legislative Auditor. The Office of the State Auditor was a constitutional office that was charged with overseeing more than $20 billion spent annually by local governments in Minnesota, publishing their audit reports online. The Office of the Legislative Auditor audits state agencies and constitutional offices, and also publishes their audit reports online.[100][101] In addition to the office's primary focus on state agencies and programs, they also audit three metropolitan agencies and selectively review programs that were administered locally.[102][103]


Minnesota received $3.75 billion in federal stimulus funding between February 2009 and June 2013.[104]

Public Employees

According to 2008 Census data, the state of Minnesota and local governments in the state employed a total of 360,790 people.[105] Of those employees, 232,388 were full-time employees receiving a net pay of $1,043,514,803 per month and 128,402 were part-time employees paid $143,995,658 per month.[105] More than 54% of those employees, or 196,977 employees, were in education or higher education.[105]

See also

External links

Additional reading


  1. 1.0 1.1 General Fund Pie Chart. Accessed September 26, 2013
  2. 2.0 2.1 2.2 2.3 ABCNews.com "Minn. Governor Signs Budget, Ends State Shutdown" July 20, 2011
  3. MSNBC.com "Minn. government shuts down as budget talks fail" July 1, 2011
  4. The Minneapolis Star Tribune "Dayton agrees to June 30 GOP offer, with conditions" July 14, 2011
  5. Bloomberg "Minnesota Governor, Lawmakers Strike Deal" July 14, 2011
  6. Forbes "Minn. lawmakers convene to vote on ending shutdown" July 19, 2011
  7. FY2012 Enacted Budget
  8. National Conference of State Legislatures "State Experiences with Annual and Biennial Budgeting" April 2011
  9. State Budget Solutions "State Budget Solutions' third annual State Debt Report shows total state debt over $4 trillion" Aug. 28, 2012
  10. State Budget Solutions “Report reveals aggregate state debt exceeds $4 trillion” Oct. 24, 2011
  11. State Budget Solutions "State debt more than $37,000 per private worker, $13,000 per capita" Oct. 2, 2012
  12. US Census Federal Aid to State and Local Governments
  13. Tax Foundation' "Monday Map: Federal Aid to State Budgets. Accessed October 15, 2013
  14. 14.0 14.1 14.2 The Minneapolis Star Tribune "Fractures in DFL ranks showing on Dayton tax overhaul" Jan. 29, 2013
  15. 15.0 15.1 Office of Gov. Mark Dayton Press Release "Budget for a Better Minnesota" Jan. 22, 2013
  16. 16.0 16.1 The Minneapolis Star Tribune "Minn. GOP lawmakers question cuts in Dayton budget; administration says some 'reallocations'" Jan. 28, 2013
  17. Businessweek "Sales tax plan would be boon to some Minn. cities" Jan. 28, 2013
  18. 18.0 18.1 18.2 18.3 The Minneapolis Star Tribune July 21, 2011
  19. The Washington Post "Good news: Minnesota, expecting worst, gets estimate of $876 million budget surplus" Dec. 1, 2011
  20. The Minneapolis Star Tribune "GOP plan to repay schools vetoed" April 5, 2012
  21. The Minneapolis Star Tribune "School aid delay comes with some extra costs" July 26, 2011
  22. Minnesota Public Radio "Short on cash, school districts would borrow to meet expenses" Dec. 1, 2011
  23. The Star Tribune "Minnesota gets $336" June 10, 2012
  24. The Minneapolis Star Tribune "State had budget surplus of $323 million" Feb. 29, 2012
  25. Businessweek "Minn. burns future tobacco cash for budget fix now" Nov. 8, 2011
  26. Pioneer Press "State hijacks funds from five counties' local sales taxes to fix budget" Aug. 1, 2011
  27. The Wall Street Journal "Moody's Lowers Minnesota Outlook To Negative On Strained Finances" Aug. 1, 2011
  28. The Minneapolis Star Tribune "State braces for a costly S&P credit downgrade" Aug. 27, 2011
  29. Bloomberg "Minnesota Bonds Lose Top AAA Rating as S&P Cites ‘Imbalance’" Sept. 23, 2011
  30. The News Star "Budget turnarounds: Some states socking cash away" Jun 23, 2012
  31. MSNBC.com "Minn. government shuts down as budget talks fail" July 1, 2011
  32. The Minneapolis Star Tribune "Dayton signs budget, shutdown ends" July 20, 2011
  33. Forbes "Minn. lawmakers convene to vote on ending shutdown" July 19, 2011
  34. 34.0 34.1 34.2 Bloomberg "Minnesota Governor, Lawmakers Strike Deal" July 14, 2011
  35. The Minneapolis Star Tribune "Dayton agrees to June 30 GOP offer, with conditions" July 14, 2011
  36. Financial Times "Minnesota poised to end shutdown" July 14, 2011
  37. The Wall Street Journal "Minnesota Shutdown Continues; GOP Meets at Capitol" July 4, 2011
  38. The Minneapolis Star-Tribune "Judge won't order state budget mediation, special session" June 23, 2011
  39. 39.0 39.1 39.2 39.3 39.4 The Washington Post "Minnesota shutdown drags on" July 5, 2011
  40. The Wall Street Journal "No Progress in Minnesota Budget Stalemate" July 6, 2011
  41. Minnesota Public Radio "Shutdown Day 7: No budget offer from GOP but criticism for Dayton" July 7, 2011
  42. The Minneapolis Star Tribune "Dayton offer goes nowhere"July 12, 2011
  43. The Minneapolis Star Tribune "Budget panel offers its blueprint" July 7, 2011
  44. Minnesota Public Radio "Mondale/Carlson Commission: Tax cigs, alcohol and income" July 7, 2011
  45. Minnesota Public Radio "If it lasts, shutdown could make history" July 8, 2011
  46. Framework for a State Budgtet Solution
  47. Inforum "Minnesota budget talks back on" June 27, 2011
  48. The Minneapolis Star Tribune "Top earners cool to paying more" July 8, 2011
  49. The Minneapolis Star Tribune "Divide widens; vetoes loom" May 18, 2011
  50. Businessweek "Minnesota bond rating downgraded over budget woes" July 7, 2011
  51. 51.0 51.1 The Washington Post "No way to tell how much the Minnesota shutdown would cost" July 6, 2011
  52. The Washington Post "Minnesota government shutdown stirs accusations over who gets paid, who doesn’t and why" July 11, 2011
  53. CNNMoney.com "It's D-day for state budget" June 30, 2011
  54. Washington Post, Minnesota government shuts down, July 1, 2011
  55. Cite error: Invalid <ref> tag; no text was provided for refs named shurts
  56. Businessweek "Minn. AG starts legal preparations for shutdown" June 13, 2011
  57. The Minneapolis Star Tribune "Judge: Core functions must continue in shutdown" June 29, 2011
  58. The Daily Planet "State budget shortfall shrinks to $5.03 billion" March 1, 2011
  59. The Pioneer Press "3 Minnesota governor candidates: How they would balance state's budget" Oct. 25, 2010
  60. 60.0 60.1 60.2 60.3 The Wall Street Journal "Minnesota Considers Top-Tier Tax Boost" Feb. 15, 2011
  61. http://politicsinminnesota.com/blog/2011/03/minnesota%E2%80%99s-projected-budget-deficit-dropped-by-12b-but-tensions-still-remain/ Politics in Minnesota, Projected Budget Deficit Drops, But Tensions Still Remain, March 2, 2011]
  62. Review-News.com, Minnesota Budget Debate Begins, March 1, 2011
  63. 63.0 63.1 63.2 The Minneapolis Star Tribune "Budget talks: Another step backward" June 7, 2011
  64. Minnesota Public Radio "Dayton's snowbird tax plan may be hard to enforce" March 8, 2011
  65. Duluth News, Minn. Senate Rejects Dayton Income Tax Plan, March 2, 2011
  66. MPR, Dayton: Recess was Over, March 3, 2011
  67. Waseca County News "Round one of Minnesota's budget complete" April 12, 2011
  68. []
  69. The Minneapolis Start Tribune "Divide widens; vetoes loom" May 18, 2011
  70. Minnesota Public Radio "Work on Minn. budget bills expected to pick up as Legislature edges toward deadline" May 9, 2011
  71. Bloomberg "Senate takes $930M whack at Minn. budget shortfall" Feb. 3, 2011
  72. Politics in Minnesota, Projected Budget Drops, But Tensions Still Remain, March 2, 2011
  73. Minnesota Public Radio "GOP income tax cut bill advances in Minn. legislature" March 20, 2011
  74. 74.0 74.1 "Minn. House passes 1st wave of budget cuts" Jan. 27, 2011
  75. 75.0 75.1 The Minneapolis Star Tribune "Minn. GOP's first budget pass: $1 billion in trims" Jan. 19, 2011
  76. Politics in Minnesota, Projected Budget Drops, But Tensions Still Remain, March 2, 2011
  77. Star Tribune, Minnesota GOP Legislators Rushing to Craft State Budget, March 27, 2011
  78. Star Tribune, Minnesota GOP Legislators Rushing to Craft State Budget, March 27, 2011
  79. Pierce County Herald, Legislature to Look at Wisconsin- Minnesota Tax Reciprocity again, March 3, 2011
  80. The Hill, Minnesota Expands Medicaid Coverage, Feb. 17, 2011
  81. Business Week, Minnesota gets OK from feds on Medicaid expansion, Feb. 17, 2011
  83. Minnpost.com, "Many states, including Minnesota, lag in putting their spending on the Internet," February 27, 2009
  84. Star Tribune, "A blogger's quest: Where's the database?" May 15, 2009
  85. Grants Management Website
  86. Minnesota State Arts Board website
  87. 2008 Grant Recipients, Artists Initiative
  88. Salary plans
  89. Minnesota Management and Budget
  90. Minnesota's "Transparency and Accountability Project" site
  91. Institute of Government and Public Affairs
  92. University of Illinois Transparency Profile for Minnesota
  93. [ University of Illinois 50 State Transparency Comparison
  94. University of Illinois State Transparency Profiles
  95. Minnesota Legislative Reference Library,"Resources on Minnesota Issues State Budget," December 2008
  96. Minnesota Management and Budget,"2010-11 Governor's Budget Instructions & Forms," retrieved March 18,2009
  97. Minnesota Office of the Revisor of Statutes, "Minn. Stat. § 16A.152, subd. 4.," retrieved October 27, 2009
  98. Minnesota House of Representatives Research Department, "Unallotment: Executive Branch Power to Reduce Spending to Avoid a Deficit," March 2008
  99. 99.00 99.01 99.02 99.03 99.04 99.05 99.06 99.07 99.08 99.09 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 US Government Spending,"Minnesota State and Local spending," retrieved March 17,2009
  100. Minnesota Office of the State Auditor Web site, retrieved October 27, 2009
  101. audit reports
  102. Minnesota Office of the Legislative Auditor Web site, retrieved October 27, 2009
  103. audit reports
  104. Recovery, "Stimulus Spending by State"
  105. 105.0 105.1 105.2 2008 Minnesota Public Employment U.S. Census Data