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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 follow's 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. 

MNIT’s currently has eight funding proposals included in the One Minnesota Budget.

Moving Technology Forward for Minnesotans

Minnesota families and organizations increasingly interact with state government online and they expect their experiences and transactions to be secure and user-friendly. Governor Walz and Lieutenant Governor Flanagan see technology as a catalyst for government transformation that puts Minnesotans at the center of state services. Their proposals make historic investments in modernizing state technology systems – helping state agencies adopt more efficient, modern ways of working that position Minnesota for continued success in the digital age.

Secure and Resilient System Proposals


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Advance Cybersecurity Statewide

Minnesotans expect their governments to secure systems and protect their data against potential cyber threats. To ensure the reliable delivery of government services, we must reduce the risk posed by increasing and evolving cyber threats from ongoing geopolitical events and other malicious actors. This proposal would help the state quickly detect and respond to threats and add defense layers. It would also enable a state match of federal grant funds to build and implement a plan that improves cybersecurity for state and local governments – many of whom rely on state data to deliver services to Minnesotans.

Requests amounts (in thousands): FY24-25: $32,880



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Executive Branch Cloud Transformation

The state is shifting to cloud infrastructure to position for the future and use tools that are more secure, resilient, and scalable. This proposal will improve the security and reliability of state systems by moving state agencies to the cloud – from on-premises infrastructure to scalable, cloud-hosted infrastructure with innovative new capabilities. This direct investment in an executive branch cloud strategy will minimize cost impacts to agencies and enable a systematic, accelerated approach.

Request amounts (in thousands): FY24-25: $33,595

Customer-Focused, Modern Service Proposals


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Targeted Application Modernization

Minnesotans rely on digital government more than ever before, and they demand modern service experiences. Many of the State’s existing 2,800 applications and digital service solutions use aging technology that doesn’t offer the modern digital experiences that Minnesotans deserve. This proposal will establish a funding source to improve users' experiences by systematically addressing aging technology and modernizing targeted applications.

MNIT will leverage this funding along with recommendations from the Blue Ribbon Council on Information Technology (now the Technology Advisory Council) to use the Modernization Playbook to simultaneously adopt modern business processes and improve user experience.

Request amounts (in thousands): FY24-25: $40,000



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Children's Cabinet IT Innovation

As part of the Governor and Lieutenant Governor’s commitment to make Minnesota the best state for kids to group up in, this proposal creates a dedicated funding source for interagency IT initiatives that are prioritized through the Children’s Cabinet. It will create operational efficiencies that center Minnesota children and their families over agency structures by fostering innovative, intersectional, and inter-agency IT efforts. The proposal will help improves outcomes and enable additional capacity to realize Children’s Cabinet objectives without impacting agency priorities.

Request amounts (in thousands): FY24-25: $2,000; FY25-26: $2,000



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Supporting Accessible Technology in State Government

As state agencies mature digital services, we need to meet the expectation and legal standards that those services are accessible to all Minnesotans. To keep up with the increased demand and expand accessibility gains, agencies rely on the continued support and leadership from MNIT’s Office of Accessibility. This proposal allows the Office to continue to provide its current services in an environment of increased expenses for personnel, among other necessary expenditures – the first proposed increase to their budget since 2013.

Request amounts (in thousands): FY22-23 (State): FY24-25: $600; FY25-26: $600

Data-Driven Decision Proposals


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Expanding Data-Driven Decisions with GIS

This proposal increases funding and capacity for Minnesota’s Geospatial Information Office (MnGeo) to enhance the state’s ability to lead collaborative geographic data collection and management work in partnership with local governments, federal agencies, and non-governmental partners.

80% of all data is estimated to have a spatial component – ensuring that data is as current and accurate as possible, enables Minnesota’s policymakers to make the most impactful and supportive decisions possible. Increasing MnGeo’s capacity to lead collaborative data collection will organizations across Minnesota reduce flood risk, manage land, protect our waters, target renewable energy implementation, and much more.

Request amounts (in thousands): FY24-25: $734; FY25-26: $809



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Operating Adjustment & Cash Flow Assistance

This proposal will enable MNIT to maintain current levels of service by covering increases in compensation costs because of labor contract settlements and other non-compensation-related operating costs to maintain current levels of service. The cash flow assistance provides MNIT with $50 million in working capital due to the cash conversion cycle and is repaid at the end of the biennium.

Request amounts (in thousands): FY24-25: $1,382; FY25-26: $1,852

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