State Auditor Julie Blaha Releases 2023 Town Finances Report - For August 14, 2025

Contact: Burke Spizale | (612) 469-4447

ST. PAUL, Minn. – Today, State Auditor Julie Blaha released the Office of the State Auditor’s 2023 Town Finances Report. 

“Minnesota towns are navigating financial challenges as revenues shift and expenditures rise,” Auditor Blaha said. “Recent economic uncertainty and major changes to federal programs are not yet reflected in these numbers and will likely amplify the challenge.”

The total revenue for 2023 was $394.2 million, a 3.6% decrease from 2022. Despite the decline, tax revenues rose 8%, helping offset drops in federal, state and local grants. Taxes and state grants together made up 87% of total revenues.

Total expenditures for 2023 increased 14.8% to $437.6 million, driven by rising costs across general government, public safety, roads and bridges. Debt service expenditures grew by 6.3% to $13.8 million, indicating an increase in payments related to principal and interest.

Outstanding indebtedness totaled $71.4 million in 2023, a 4.1% decrease from 2022. However, short-term debt surged by 965.1% to $671,518, indicating an increased reliance on temporary borrowing.

Summary of 2023 Financial Data:

• Total revenues: $394.2 million (down 3.6% from 2022)
• Tax revenues: $279.9 million (up 8.0% from 2022)
• Total expenditures: $437.6 million (up 14.8% from 2022)
• Debt service expenditures: $13.8 million (up 6.3% from 2022)
• Outstanding indebtedness: $71.4 million (down 4.1% from 2022)
• Short-term debt: $671,518 (up 965.1% from 2022)

This report analyzes the financial operations of 1,659 towns that report to the OSA, most of which serve small populations. It highlights the challenges rural communities face in managing revenues and expenditures.

The complete report, which includes an executive summary, graphs and tables, is available on the OSA website.