Auditor Blaha Releases 2022 Special Districts Finances Report - For February 6, 2025

Saint Paul, MN – “Special districts are the result of local governments working to provide services in the most efficient and effective way possible,” said Auditor Blaha. Earlier today, State Auditor Julie Blaha released the 2022 Minnesota Special Districts Finances Report.

Minnesota has over 600 special districts that provide clean water, transportation, public safety, health, housing, and other services to residents. Special districts are local government units created or authorized by state law to perform specific duties or to provide specific services in a limited scope. 

“This report, which covers the period between July 1, 2022, and June 30, 2023 (FY 2022), shows strong revenue growth, particularly in federal and local grants, which helped fund large increases in transit, economic development, and education,” added Blaha.

The 2022 Minnesota Special Districts Finances Report shows revenues and expenditures increased by 14 percent and 9 percent respectively.

The primary sources of revenues for special district governmental funds were state grants, federal grants, taxes, local grants, and charges for services. In addition to governmental funds, many special districts establish enterprise funds to account for services that are financed and operated in a manner similar to private business enterprises.

The Report and its underlying data are available on the Office of the State Auditor’s website. Highlights of the report include:

• Special districts reported total governmental fund revenues of $1.5 billion in 2022. The primary sources of revenues for special district governmental funds were state grants (32 percent), federal grants (18 percent), and taxes (17 percent).
• Special districts reported total governmental expenditures of $1.4 billion in 2022. Of this amount, $1.3 billion were current expenditures, $110.0 million were capital outlays, and $75.7 million were debt service payments.
• In 2022, special district enterprise operations reported operating revenues of $2.4 billion, operating expenses of $3.2 billion, and operating losses of $791.0 million (operating revenues minus operating expenses). In addition, special district enterprises had non-operating revenues of $972.1 million, non-operating expenses of $215.4 million, and a net loss of $34.3 million.
• Special districts reported $5.5 billion in governmental and enterprise funds outstanding long-term debt (bonds and other long-term debt) in 2022.
• Of the 222 special districts that held long-term debt in 2022, four special districts accounted for $4.5 billion, or 81 percent, of the total outstanding long-term debt of special districts.