Senators Question Minneapolis Spending of $400K Economic Development Funds

The Minnesota Senate's Committee on Taxes convened on May 13, 2025, to discuss recent expenditures related to a funding program aimed at supporting small businesses in Minneapolis. A significant point of contention arose regarding the timing and transparency of the $400,000 spent by the city, which coincided with the passage of a related bill just days prior.

Senator Webb raised concerns about the lack of clarity surrounding the allocation of these funds, questioning whether the committee had been informed about the specific purposes for which the money was spent. In response, Senator Dibble clarified that the funds had been disbursed over the past six months to assist small businesses with various needs, including marketing and capacity building. He emphasized that the expenditures were part of a structured reimbursement process and were intended to support local businesses facing challenges.

The discussion highlighted the importance of transparency in government spending, with Senator Rest noting that the committee was alerted to the expenditures by the Minnesota Management and Budget (MMB) office. She expressed concern that the timing of the spending could have been better coordinated with legislative adjustments.

Senator Dibble defended the program, asserting that the funds were allocated as originally intended and were helping to revitalize struggling areas of Minneapolis. He acknowledged differing opinions on the program's value but maintained that the expenditures were legitimate and necessary.

The meeting underscored the ongoing dialogue about fiscal responsibility and the need for clear communication between government entities regarding the use of public funds. As the committee continues its work, the implications of these discussions may influence future legislative actions and funding strategies.