MN Spends $1.6 billion in Stimulus Funds
St. Paul – Minnesota Management & Budget (MMB) announced preliminary data that shows more than $1.6 billion in American Recovery and Reinvestment Act (ARRA) funds has been received and spent by the state. Current estimates are that Minnesota will eventually receive a total of $4.7 billion for state administered programs with an additional $4.2 billion in the form of individual tax benefits to Minnesota residents. The data, which has been sent to the federal government for national reporting, links stimulus funds with creating or retaining 11,800 jobs in Minnesota.
“Minnesota has clearly been aggressive in its use of federal stimulus dollars,” said MMB Commissioner Tom Hanson. “State and local governments were challenged to implement a new program and report more information in a very narrow window. I’m pleased to report that Minnesota has met that challenge.”
Minnesota state government ARRA data will soon be merged with preliminary reports from other state and local governments by the federal Recovery Board. It is expected that estimates of the national jobs impact will be made available later this week. Those figures will include the direct jobs reported by the State along with additional indirect jobs as estimated by the Recovery Board.
MMB’s estimate of jobs is the result of 17 state agencies that have filed more than 200 reports detailing spending and jobs data on all ARRA grants awarded to date. The data submitted on Saturday, October 10 is preliminary and will be reviewed to ensure accuracy and consistency prior to being finalized on October 30.
Preliminary data suggest broad impact from stimulus funding. The biggest effect is from state fiscal stabilization funds, where an estimated 5,900 education jobs and another 1,200 public safety jobs were preserved. Since some schools are drawing most of the funds early in the year, annual numbers may be lower. Initial reports submitted by the Minnesota Department of Transportation show nearly 900 transportation jobs created or saved.
Today’s figures reflect the jobs impact of direct federal spending made through state government. The impact of other stimulus spending, such as awards made to cities and counties or tax incentives provided to individuals, is not included in these figures. Other types of funding, such as higher Medicaid matching funds, are also not included in the federal reports. The total impact of the stimulus spending will be higher than the figures reported today.
“These jobs figures are the result of a federal reporting process that is completely new and untested,” said Commissioner Hanson. “Although there have been plenty of challenges, reporting government activity so broadly and so quickly is an important result of the Recovery Act. All citizens are better served by this commitment to increased transparency.”
This data is the first of a series of reports expected to show the federal stimulus’ impact on the state and national economy. Updates of these reports will occur quarterly, with the next being due January 10.