State Auditor Blaha Releases 2022 County Finances Report - December 19, 2024

“Counties buoyed by federal pandemic programs need to prepare for those programs to end.”

Saint Paul, MN – The Office of the State Auditor (OSA) released the 2022 Minnesota County Finances Report today. Minnesota county finances remained stable in 2022, aided by federal American Rescue Plan Act (ARPA) funds. The annual report is based on county reporting forms, financial statements, and audits. The report covers the current and long-term trends for county revenues, expenditures, and debt.

“More than $329 million in ARPA funds boosted county finances in 2022,” said Auditor Blaha. “This important pandemic-era program directed more than $1.1 billion to counties. Soon pandemic funds are coming to an end,” continued Auditor Blaha. “Now is the time for counties to budget for the end of ARPA.”

In 2022, county revenues increased by 5% and expenditures increased by 6.1%. The largest sources of revenue were taxes, state grants, and federal grants, making up 86% of total county income. The largest sources of expenditures were human services, general government, streets and highways, and public safety, accounting for 81.5% of all county spending.

The highlights from the 2022 report include:

• Minnesota county revenues totaled $8.8 billion, a 5% increase from 2021.
• Counties reported total expenditures reached $9 billion, rising 6.1% from 2021, with capital outlays increasing by 16.3%.
• Outstanding long-term debt was reported at $4.3 billion, up 1.3% from 2021, with most debt in the form of bonds.
• Minnesota counties’ enterprise operating losses grew by 44.3%, while net profits dropped 94% from 2021.
• Minnesota counties’ unrestricted fund balances of the General and Special Revenue Funds totaled $3.4 billion, a 1.7% increase from 2021.

Over the past decade, county revenues rose 49.5%, and expenditures grew by 44.1%. After adjusting for inflation, revenues rose by 14.2%, and expenditures by 10% over this period.

The complete report, which includes an Executive Summary, graphs and tables, is available on the OSA website.