Press Release: Auditor Blaha Statement on CARES Act Funding for Local Governments

Saint Paul, MN – “CARES Act funds are needed in communities across Minnesota and I’m happy to see that these funds are being distributed,” said State Auditor Julie Blaha. “COVID-19 has reduced and delayed property tax payments, as well as having a direct impact on government expenditures. Both of these have been stressing local governments’ ability to maintain appropriate cash flow reserves.”

On Monday Auditor Blaha shared her position on releasing these funds with the Governor’s office.

Blaha continued, “The longer we waited to begin distribution of funding, the more likely documentation needed to properly track the use of these funds could have been lost, or not collected in the first place. Any tracking errors made thus far are still recent enough to be repaired. Bad tracking can lead to the state being penalized for errors and the public losing trust in the use of those funds.”

“Over the past twenty years, trends show that local governments have used their local control to keep their bottom lines stable,” Blaha added. “The CARES Act resources for local government go directly to pandemic impacts on local economies and will be key to maintaining that stability long term.”

The full document that the Office of the State Auditor sent to the Governor’s office for consideration may be found here (pdf).