Legislative Budget Office

The Legislative Budget Office (LBO), as established in Minnesota Statutes 3.8853, is a nonpartisan office within the Minnesota Legislature. The LBO provides the Minnesota Legislature with nonpartisan, accurate, and timely information on the fiscal effects of proposed legislation. An estimate of the fiscal effects of proposed legislation to a state entity released by the LBO is called a fiscal note. An estimate of the fiscal effects of proposed legislation to local units of government (cities, counties, school districts, and townships) released by the LBO is called a local impact note.

The LBO also provides professional and technical support to the Tax Expenditure Review Commission. The Tax Expenditure Review Commission is charged with reviewing tax expenditures and evaluating their effectiveness and fiscal impact, as described in Minnesota Statutes 3.8855.

The Legislature created the LBO during the 2017 Legislative Session. Funding for the LBO was first appropriated in fiscal year (FY) 2018. Changes enacted during the 2018 Legislative Session established an effective date for the LBO to assume fiscal note responsibilities on September 1, 2019.

Additionally, in 2021, the Legislature created the Tax Expenditure Review Commission and tasked the LBO with providing professional and technical support to the commission.

The LBO is charged with objectively evaluating proposed legislation to assess the potential fiscal impact on the state budget. To effectively perform this work, the LBO must not be inappropriately influenced by any individual or group. The LBO’s independence is enhanced by having an appointed director who serves a six-year term.

All fiscal notes released by the LBO are based on data provided by state agencies impacted by the proposed legislation as well as LBO analysis of relevant information available. Nonpartisan LBO staff provide an independent review and analysis of this information to assess accuracy, reasonableness, and compliance with fiscal note uniform standards and procedures prior to submission to the legislature.

Christian Larson serves as the Director of the Legislative Budget Office (LBO). Mr. Larson was appointed on August 17, 2022, by the LBO Oversight Commission to a six-year term. Mr. Larson joined the LBO in 2019 as a Budget Analyst and served as Interim Director from August 2020 to January 2021 and March 2021 to August 2022.

Kristi Schroedl serves as Deputy Director of the LBO. Prior to joining the LBO, Ms. Schroedl held positions for more than 30 years within the Executive Branch, most recently serving as the CFO at the Department of Transportation.

Budget analysts are responsible for the review and analysis of fiscal notes for a major policy area within the state budget and provide professional and technical assistance to the Tax Expenditure Review Commission.

The office has one coordinator who manages all fiscal note requests, oversees the local impact note process, provides training and technical assistance on the Fiscal Note Tracking System users, and provides commission support to the LBO Oversight Commission and Tax Expenditure Review commission.

Minnesota Statutes, 3.8853 establishes the LBO, governs the appointment and term of a director, specifies the development of uniform standards and procedures for the fiscal note process under Minnesota Statutes, 3.98, requires agencies to comply with providing data to the LBO for the purposes of completing fiscal notes, establishes parameters related to the LBO’s access and use of not public data and requires fiscal notes to be posted to the LBO’s website within 24 hours of completion.