Minority-Owned Companies Get Fraction Of State Business
ST. PAUL (AP) - Figures show minority-owned companies in Minnesota get a small fraction of state procurement work worth about $2 billion annually, despite a state program designed to help them win more of that business.
Minorities were awarded $14.3 million, less than 1 percent of the state's total spending on everything from construction to food services between July 2014 and July 2015.
On contracts of $500,000 or more, Minnesota requires companies to hire minority or other 'targeted group subcontractors." The state, however, doesn't check invoices to make sure they're in compliance.
State officials acknowledge Minnesota has never tracked or monitored spending with diverse businesses. The state has responded with a multimillion-dollar overhaul of the program, including computer upgrades to increased community outreach.