Cyber Attack Exposes the Cost of Minnesota’s Unfunded Mandates

Braham, Minn. — Following interviews with local, state, national, and international media—including CNN and news organizations in London—regarding the recent cyberattack targeting municipal water systems, Braham Mayor and Republican-endorsed candidate for Minnesota State Auditor Nate George is calling on state leaders to address what he says is a growing gap between state mandates and local government resources.

During a recent CNN interview, George was asked about President Donald Trump’s comments that Governor Tim Walz bears responsibility for the circumstances surrounding the cyberattack.

“Responsibility for any cyberattack involves many factors,” George said. “However, the President is raising an important policy question that Minnesota leaders can no longer ignore.”

George said that over the past several years, Minnesota has required cities to modernize water systems, wastewater facilities, and other critical infrastructure through new technology mandates and regulatory requirements. While those upgrades improve operations, they also dramatically increase cybersecurity obligations for local governments.

“The state requires communities to install increasingly sophisticated digital systems, remote monitoring platforms, and connected technologies,” George said. “But once those systems are in place, local governments are largely left on their own to secure and maintain them.”

As Mayor of Braham, George said he has firsthand experience with the financial realities facing Minnesota cities.

“Our estimates show that implementing the information technology infrastructure and staffing necessary to properly secure today’s municipal systems would require approximately a 24 percent increase in Braham’s property tax levy during the first year, followed by an ongoing 14 percent annual levy increase to sustain those capabilities,” George said. “For a community with a median household income of approximately $55,000 to $60,000, those costs simply are not affordable.”

George said Braham’s experience reflects a broader statewide problem.

“Communities across Minnesota are being asked to comply with expanding state mandates while Local Government Aid remains largely stagnant and far below the long-term funding needed to implement and secure these systems,” George said. “The result is higher property taxes, strained local budgets, and increased cybersecurity risk.”

George argued that Minnesota should refocus its spending priorities toward core governmental responsibilities.

“Minnesota should prioritize investments that protect every citizen, including critical infrastructure, cybersecurity, public safety, and strong local governments,” George said. “Every unfunded mandate shifts additional costs onto local taxpayers, and every taxpayer dollar lost to waste, abuse, or fraud is a dollar that cannot be invested in protecting our communities.”

As the Republican-endorsed candidate for Minnesota State Auditor, George said strengthening accountability in state spending would be one of his top priorities.

“As State Auditor, I will continue exposing waste, fraud, inefficiency, and unfunded mandates that place unnecessary financial burdens on local governments,” George said. “Taxpayer dollars should be spent responsibly, and state policies should strengthen—not weaken—the communities that provide essential public services every day.”

George concluded by calling the recent cyberattack a warning that Minnesota cannot afford to ignore.

“This cyberattack should serve as a wake-up call,” George said. “If Minnesota expects local governments to protect critical infrastructure from increasingly sophisticated threats, the state must become a true partner by providing the resources necessary to implement and secure those systems—not simply pass the costs on to local property taxpayers.”

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