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Funding and Budget Requests

How is MNIT funded?

Minnesota IT Services is primarily funded by revenue generated directly from IT services provided to the executive branch and non-executive agencies. This funding includes both enterprise rate-based services and pass-through funds for IT projects and applications. Only 2% of funding is from general fund appropriations and special revenue funds.

MNIT operates as a chargeback organization delivering both enterprise and local agency services. In FY22, enterprise services comprised 30% ($201M) of MNIT's funding and agency IT applications and projects provided 67% ($445M) of MNIT's funding. 

2022 MNIT Financial Summary

How are MNIT’s funds spent?

In FY22, MNIT expenses across all customers were $661M. State agencies that are subject to IT consolidation spent $642M on technology. 

*Other operating expenses include space and utilities, statewide indirect, travel, supplies, and employee development.

**Professional technical services include both external and state vendors.

MNIT expenses, FY22 actual

Graph showing MNIT expenses in FY2022. Total expenses are $661 million. Salaries/benefits $338M (51%); Other operating expenses $11M (2%); Network & telecommunications $16M (3%); Equipment $42M (6%); Software $127M (19%); Professional technical services $178M (19%)

Budget

MNIT receives authorization for its funding through the State of Minnesota's budget process. MNIT follows the state's biennium budget management process in collaboration with state agency partners. We submit change items annually to be included in the Governor's budget recommendations for new initiatives, objectives, projects, and programs. 

Following the 2023 Legislative Session, the omnibus state government and elections finance bill (House File 1830) was signed into law and included over $130M in new spending for Minnesota IT Services to:

  • Improve cybersecurity protections and match federal funding for distributing cybersecurity grants to local governments.
  • Reduce barriers to getting help from the State by investing in modern, person-centered experiences that improve mobile access.
  • Support the state’s ability to quickly deliver innovative services by investing in cloud services.
  • Expand the capacity of Minnesota’s Geospatial Information Office and the Office of Accessibility, and support IT initiatives for the Children’s Cabinet.
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