Minnesota government agencies are feeling a budget squeeze with higher fuel costs

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State, county and local governments in Minnesota are feeling a budget squeeze with record fuel prices in the first half of 2022.

Minnesota Department of Transportation spokeswoman Anne Meyer told 5 EYEWITNESS NEWS that over the past five years, MN-DOT has spent an average of about $12 million annually on fuel costs, but this year, that cost will likely be $16 million when the budget cycle ends on June 30.

“Now we find ourselves with a 20% increase in fuel costs, which is significant,” Meyer said. “We are constantly changing what we look at, what we are dealing with and these factors are taken into account and therefore it is likely that we will ask for more money to carry out projects from state legislators.”

Meyer said higher fuel costs are tough, but taxpayers will get the services they paid for because MN-DOT builds contingencies into their budgeting every year.

We are constantly changing what we watch, what we deal with and those factors are taken into account,” Meyer said. “And so it’s likely that we’ll be asking for more money to do projects from state legislators.”

Hennepin County told KSTP that its budget for fuel costs was about 25% higher this year at $1.7 million, compared to about $2.1 million a year ago.

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