Minnesota State Statute 43A.17 limits the salary and the value of other forms of compensation of a person employed by a political subdivision of this state, excluding school districts. The compensation limit was originally established in 2005 as a percent of the governor's salary with annual increases to this limit based on CPI-U increase over the prior year.
The Bureau of Labor Statistics releases the monthly readings for the Consumer Price Index in the second half of the following month. The October readings are typically released after November 15th, therefore Minnesota Management and Budget will calculate and post the compensation limit for the next calendar year in late November of each year. Refer to Subdivision 9, of Statute 43A.17.
The current compensation limit and historical compensation limits are in the following link:Local Government Compensation Limit by year
If a local government wants to pay a position compensation that is above the limit, a request must be submitted and approved by the Commissioner of Minnesota Management & Budget. To request a compensation limit increase, please complete the Compensation Limit Increase Request Form (word version) (pdf version), and send the completed form to the Commissioner of Minnesota Management & Budget.
If a local government has been granted a compensation limit increase for a position, the new limit is increased annually by the amount of the CPI-U increase in the chart. The most recent and historical adjustment percentages are in the following link: Local Government Compensation Limit by year