Agency Heads Object to State Agency Budget Plans

Senate Republican leaders announced joint Senate and House targets last week which prioritize tax relief, education, and transportation. Their agreement also calls for a $515 million dollar reduction over current budgets for the areas of state government, jobs and the environment. On Tuesday, May 2, State Auditor Rebecca Otto and state agency leaders expressed concerns about the cuts to members of the Conference Committee on State Government Financing.

Among those testifying, State Auditor Otto said that her agency divisions would be facing a 21 percent budget reduction, which would adversely impact their ability to exercise their responsibilities overseeing $20 billion dollars per year in public expenditures. One area incurring the budget cuts, she explained, would be the division investigating theft of public funds. Another provision would prohibit intra-agency transfers, which she explained would be unconstitutional because it fails to adequately fund the State Auditor. Representative Jim Nash, R-Waconia, argued that the State Auditor transferred $100,000 from its pension division to pay for a lawsuit challenging the 2015 law allowing cities to contract with private auditors. He said, "There's a reason that we're doing that, so you don't deprive people who should be getting audits..."

Tom Baden of MN.IT Services, the state's IT agency, expressed concerns about the proposed budget's impact on cyber security. "The current levels are simply insufficient to deter the threat that's coming at us in ever increasing waves," he said.

Department of Administration Commissioner Matt Massman, Minnesota Management and Budget Commissioner Myron Frans, Department of Revenue Commissioner Cythnia Bauerly and Human Rights Commissioner Kevin Lindsey also testified about their concerns with the proposed agency reductions.