Minnesota Auditor Julie Blaha won't run for re-election in 2026

Context: The auditor serves as a check on local government finances and spending, reviewing the books and producing reports related to entities such as counties, cities, school districts, public pension plans and municipal liquor stores.

• In addition to overseeing some $60 billion in local spending, the auditor provides tools and trainings for local governments, sits on several state boards and investigates allegations of theft of misuse of public funds spent at the local level.

Flashback: When Blaha, a former middle school teacher and labor leader, was first elected in 2018, she inherited an office that she described as under "heavy attack."

• State funding cuts had reduced the staff by half over the years and workforce shortages in the broader public finance field were taking a toll.
• Relationships with local governments, legislators and private auditors were "frayed at best," she said, following her predecessor's legal battle over counties' use of outside accountants for audits.

What she's saying: Blaha said she felt ready to pass the torch after making a "lot of progress" on rebuilding staff and outside relationships, securing more funding from the Legislature and working to modernize the office with better tools and cyber security.

• "My job was to turn things around, get this in a place that gives Minnesotans the accountability they deserve, and then pass it off," she told Axios in an interview Wednesday. "And we have gotten to a place that I think is really good."

The other side: Republican critics have argued that the auditor hasn't done enough to root out fraud and wasteful spending, including in cases connected to state programs.

• While the office's authority on that front is limited, it conducts some special investigations and can refer evidence of theft or misuse of local funds to prosecutors.

Between the lines: The role of auditor has been used as a springboard for higher office — including governor — in the past.

• Blaha said she has no such plans for 2026 at this time, though the 55-year-old is keeping the door open to future public service.

State of play: State Rep. Dan Wolgamott of St. Cloud and former Fergus Falls Mayor Ben Schierer both confirmed to Axios that they will seek the DFL nomination to succeed Blaha, while Tonka Bay Mayor Adam Jennings said he'll consider it.

• Duluth City Councilor Zack Filipovich is also seen as a potential candidate, a DFL source told Axios.

On the Republican side, state Rep. Elliott Engen told Axios he is "heavily" considering a run.

• Ryan Wilson, who lost to Blaha by less than a half a percentage point in 2022, said he'll make a decision on running for office again in the coming months.

What's next: Blaha said she'll use her final year in the job to tackle the field's workforce issues and push for more changes that will streamline and simplify processes for auditors and local governments, without compromising quality or substantially increasing the risk of issues going undetected.

• She plans to remain neutral in the DFL primary, though she said she'll encourage candidates to focus on supporting local government independence and communicating to voters what the office actually does.

What we're watching: Whether other statewide constitutional officers, including Gov. Tim Walz, decide to run again in 2026.

• If Walz bows out, it could create more open-seat dominoes down ballot, as Secretary of State Steve Simon and Attorney General Keith Ellison are seen as potential candidates for governor.

Walz is expected to announce his decision this month.