Minnesota responses to the federal grant review process survey, 2021
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States employ a variety of processes to apply for and administer federal grants. Ballotpedia's 2021 state survey of the federal grant review process examined the general processes applied by the 50 states in order to seek and distribute federal funds.
Research from the Pew Charitable Trusts found that federal funds made up 32% (roughly $639 billion) of all state revenue in 2017, making them the second-largest source of state revenue behind state tax collections.[1] States direct federal funds to government programs related to education, healthcare, transportation, infrastructure, and other policies.[1]
This page features Minnesota's responses to Ballotpedia's 2021 survey.
Background
From August 5, 2021, to September 27, 2021, Ballotpedia staff contacted the executive and legislative budget offices of all 50 states via email and/or telephone to update a publicly available 2016 survey on state approaches to the federal grant review process.
Our staff contacted state officials with the following survey questions:
- Approval processes for federal grants
- What is your state’s process for federal grant applications and the approval process?
- What is your state’s approval process when the legislature is not in session?
- How does the legislature monitor the intent of federal grants? What legislative rules allow the state greater oversight of federal funds in the budgets?
- Contingency plans for the loss or decline of federal funds
- What is your state’s contingency plan in the case of a decline or loss of federal funds?
- Quality control processes for federal grants
- What is your state’s quality control process for tracking the effectiveness of federal funds?
- Does your state attempt to estimate the cost of federal fund requirements? If so, how?
- How does your state prioritize federal funds to best meet the needs of constituents?
- If your state doesn’t appropriate key federal funds like food stamps and unemployment benefits, are your state’s federal funds off-budget? How do you track this information?
Our staff also contacted state officials with the following two new survey questions regarding federal funds made available in response to the coronavirus (COVID-19) pandemic:
- Coronavirus (COVID-19) pandemic funds
- Who has decision rights over American Rescue Plan Act (ARPA) State Fiscal Recovery Fund allocations in your state?
- Who has decision rights over Elementary and Secondary School Emergency Relief (ESSER) Fund allocations in your state?
Minnesota 2021 survey responses
What is your state’s process for federal grant applications and the approval process?
“According to Minnesota Chapter 3, Section, 3.3005, Subdivision 2: A state agency shall not expend money received by it under federal law for any purpose unless a request to spend federal money from that source for that purpose in that biennium has been submitted by the governor to the legislature as a part of a budget request submitted during or within ten days before the start of a regular legislative session, or unless specifically authorized by law or as provided by this section. A budget request submitted to the legislature according to this subdivision must be submitted at least 20 days before the deadline set by the legislature for legislative budget committees to act on finance bills. Subd. 2a. Review of federal funds spending request. Twenty days after a governor's budget request that includes a request to spend federal money is submitted to the legislature under subdivision 2, a state agency may expend money included in that request unless, within the 20-day period, a member of the Legislative Advisory Commission requests further review. If a Legislative Advisory Commission member requests further review of a federal funds spending request, the agency may not expend the federal funds until the request has been satisfied and withdrawn, the expenditure is approved in law, or the regular session of the legislature is adjourned for the year. Subd. 3. State match. If a request to spend federal money is included in the governor's budget or spending the money is authorized by law but the amount of federal money received requires a state match greater than that included in the budget request or authorized by law, the amount that requires an additional state match may be allotted for expenditure after the requirements of subdivision 5 or 6 are met. Subd. 3a. Change in purpose. If a request to spend federal money is included in a governor's budget request and approved according to subdivision 2a, but the purpose for which the money is to be used changes from the time of the request and approval, the amount may be allotted for expenditure after a revised request is submitted according to subdivision 2 or the requirements of subdivision 5 or 6 are met. Subd. 3b. Increase in amount. If a request to spend federal money is included in a governor's budget request and approved according to subdivision 2 or 5 and the amount of money available increases after the request is made and authorized, the additional amount may be allotted for expenditure after a revised request is submitted according to subdivision 2, or the requirements of subdivision 5 or 6 are met. Subd. 4. Interim procedures; urgencies. If federal money becomes available to the state for expenditure after the deadline in subdivision 2 or while the legislature is not in session, and the availability of money from that source or for that purpose or in that fiscal year could not reasonably have been anticipated and included in the governor's budget request, and an urgency requires that all or part of the money be allotted before the legislature reconvenes or prior to the end of the 20-day period specified in subdivision 2, it may be allotted to a state agency after the requirements of subdivision 5 are met.”
What is the approval process when the legislature is not in session?
“Subd. 5. Legislative Advisory Commission review. Federal money that becomes available under subdivision 3, 3a, 3b, or 4 may be allotted after the commissioner of management and budget has submitted the request to the members of the Legislative Advisory Commission for their review and recommendation for further review. If a recommendation is not made within ten days, no further review by the Legislative Advisory Commission is required, and the commissioner shall approve or disapprove the request. If a recommendation by any member is for further review the governor shall submit the request to the Legislative Advisory Commission for its review and recommendation. Failure or refusal of the commission to make a recommendation promptly is a negative recommendation. Subd. 6. Interim procedures; nonurgencies. If federal money becomes available to the state for expenditure after the deadline in subdivision 2 or while the legislature is not in session, and subdivision 4 does not apply, a request to expend the federal money may be submitted by the commissioner of management and budget to members of the Legislative Advisory Commission for their review and recommendation. This request must be submitted by October 1 of any year. If any member of the commission makes a negative recommendation or a recommendation for further review on a request by October 20 of the same year, the commissioner shall not approve expenditure of that federal money. If a request to expend federal money submitted under this subdivision receives a negative recommendation or a recommendation for further review, the request may be submitted again under subdivision 2. If the members of the commission make a positive recommendation or no recommendation, the commissioner shall approve or disapprove the request and the federal money may be allotted for expenditure.”
How does the legislature monitor the intent of federal grants?
“See prior responses.”
What is your state’s contingency plan for state financing in the case of losses or decline in federal funds?
“N/A”
What is your state’s quality control process for tracking the effectiveness of federal funds?
“No.”
Does your state attempt to estimate the cost of federal fund requirements? If so, how?
"State agencies are required to provide information on any state match and staffing costs."
How does your state prioritize federal funds to best meet the needs of constituents?
"To the extent there is flexibility in the use of federal funds priorities are discussed during the legislative review process and may be specified in legislation."
If your state does not appropriate key federal funds like food stamps and unemployment benefits, are your state’s federal funds off budget? How do you track this information?
"Unemployment insurance benefits are off budget in the sense they are not part of the state's fund statements. Other federal funds are tracked as part of the "federal fund" in the fund statements."
Who has decision rights over American Rescue Plan Act (ARPA) State Fiscal Recovery Fund allocations in your state?
"The same process as described above would apply to federal ARPA funds. However, an agreement negotiated between the legislature and governor and enacted in 2021 legislation authorizes the governor to spend a portion of the ARPA funds, designates amounts in FY 2022-23 and in FY 2024 to be used for revenue replacement and reserves an amount to be spent in the 2022 legislative session in a manner agreed to by the legislature and governor."
Who has decision rights over Elementary and Secondary School Emergency Relief (ESSER) Fund allocations in your state?
"The Governor though the process described above."
Other state survey responses
Click on a state below to view its responses to the 2021 survey on the federal grant review process:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
See also
- State survey of the federal grant review process, 2021
- State responses to the federal grant review process survey, 2021
- State responses by question to the federal grant review process survey, 2021
- Federalism
External links
Footnotes
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