Laserfiche WebLink
INNEN <br />OINNEIN <br />MEM <br />ARNE H. CARLSON <br />STATE AUDITOR <br />STATE OF MINNESOTA <br />OFFICE OF THE STATE AUDITOR <br />SUITE 900 <br />525 PARK STREET <br />SAINT PAUL 55103 <br />MINNESOTA FINANCIAL HEALTH PROGRAM <br />- A Synopsis - <br />The problems which create fiscal difficulties seldom emerge <br />overnight; rather, they develop slowly, thus making potential <br />difficulties less obvious. <br />- Is Your City Heading For Financial Difficulty? <br />Municipal Finance Officers Association, 1978 <br />296.255] <br />As we look into the 1990's, it is important to remember that cities and counties <br />in Minnesota faced a number of factors in the '80's which necessitated constant <br />monitoring of their financial situations by elected officials and community <br />residents. High inflation gave way to lower inflation. Intergovernmental <br />revenues for cities (funds from the federal, state and county governments) <br />continued the decline that started in the early '80's. Federal revenue sharing <br />was discontinued in 1986. <br />These trends will continue to affect Minnesota cities and counties through the <br />decade of the '90's. <br />In addition to factors that influence the state as a whole, regional influences <br />have taken their toll. While the 7- county metro area, which includes <br />Minneapolis and St. Paul, has remained strong, the mining- and farm- dependent <br />areas continue to feel the stress associated with declining market values, <br />increasing unemployment and greater needs for welfare, health and social service <br />programs. <br />The Office of State Auditor designed the Minnesota Financial Health Program <br />(MFHP) in 1980 to assist city and county government officials and community <br />residents in monitoring statewide and regional fiscal stress influences. <br />The MFHP currently includes all 87 Minnesota counties and 190 cities with <br />populations of 2,500 or more as of the 1980 census. These cities and counties <br />prepare annual financial statements in conformity with Generally Accepted <br />Accounting Principles (GAAP) and use the Uniform Chart of Accounts, developed by <br />the Office of State Auditor. <br />Five major fiscal trends have been identified in this program. By analyzing key <br />financial indicators for five -year periods, it is possible to establish trends <br />and patterns. It is from these statistics that interpretations of each local <br />unit's financial health can be determined. <br />AN EQUAL OPPORTUNITY EMPLOYER <br />