The 2025 State and Local Government budget funds vital state agencies and offices that Minnesotans rely on and that make Minnesota a great place for businesses and a great place to raise a family. This budget focuses on maintaining stability across state operations, modernizing our core systems, and strengthening public oversight.
While the Trump administration dismantles the federal government, cutting crucial services to some of our most vulnerable, this bill funds our Attorney General, who fights those who take advantage of Minnesotans and infringe on their rights. It funds MN Information Technology, the Department of Revenue, the Department of Administration and Minnesota Management and Budget, agencies that ensure that services can be delivered across the state. It funds the Secretary of State, who is doubling down on protections for businesses. It funds numerous licensing boards that support workers across the state. And it supports agency work to protect public funds against bad actors seeking to commit fraud against the state.
Key Provisions:
Operational increases for state agencies and constitutional offices
The State and Local Government budget includes increased funding for numerous state agencies and our constitutional officers. These increases are critical for maintaining a highly talented workforce and preventing interruptions to services. These increases include additional funding to the Attorney General’s Office, the Office of the Secretary of State and the Office of the State Auditor for enhanced fraud prevention and detection.
Grants to public television and radio stations
This budget includes critical funding for grants to public television and radio stations across the state. These are vital outlets that deliver Minnesota’s Emergency Alerts and AMBER Alerts, as well as provide local programming.
Office of the Legislative Auditor
This legislation establishes a Special Reviews Division in the Office of the Legislative Auditor (OLA). It also expands the authority of the Legislative Auditor to perform special reviews to investigate allegations that an individual or organization who is subject to audit by the OLA may not have complied with any legal requirement, not simply those related to the use of public funds, as the law previously allowed.
Business Filing Fraud Prevention Act
This legislation establishes the Minnesota Business Filing Fraud Prevention Act, which addresses fraudulent business filings with the Office of the Secretary of State.
It establishes a process for complainants who believe that a business filing was made fraudulently to submit a declaration of wrongful filing. This act will protect businesses and business owners across the state.
Local government audit standards
The audit thresholds for local units of government are updated in this legislation to better reflect the realities of local units, especially small cities and towns.
Licensing boards
This legislation makes numerous technical changes to statutes governing licensing boards. While these changes may seem minor, they serve to increase access to licensure, especially in workforce shortage areas.
State Fossil and State Constellation
The giant beaver is now the official fossil and Ursa Minor is the official constellation for the State of Minnesota.
Did Not Pass:
Zoning and land-use reforms
See Housing and Homelessness Prevention section
Repeal of the Ban on Merchant Bag Bans
In 2017, the legislature passed a bill that would ban local governments from passing ordinances banning the use of paper or plastic bags at store checkouts. A repeal of this law was included in the Senate State and Local Government omnibus bill, but it did not make it into the final conference committee report.