Doty: I choose to use it as a positive
Advocacy
Robert Doty, Minnesota Department of Revenue commissioner | April 2021 Footnote
Editor's note: Updated March 31, 2021
Taxes are very much part of the discussion this legislative session as Gov. Tim Walz and legislators work to craft a two-year budget for fiscal years 2022–23. Some might call that “the usual.” But this year is also unique as that conversation takes place against the backdrop of the ongoing COVID-19 pandemic and — in March — the first trial in the death of George Floyd while in Minneapolis police custody. (The latter sparked a wave of peaceful protests and, in some areas, disruption and destruction.)
These crises intersect with some of the inequities our state faces today and, in ways both obvious and subtle, with our tax code — where issues of equity and fairness often take center stage in policy discussions. From stimulus payments and unemployment benefits, to property tax relief and how to pay for rebuilding our communities, taxes are part of this greater discussion.
As partners, the Minnesota Department of Revenue and the MNCPA typically focus on the practical aspects of tax administration and compliance. To name a few: the effects of law changes on your clients’ tax situations, how the department interprets current and new laws, and what happens when taxpayers cannot file or pay on time. Of course, we may not always agree — on policy or tax situations — but Revenue appreciates the flexibility of the CPA community as we navigate those issues together.
In that spirit, I’m pleased to continue our quarterly contributions to Footnote where we will answer more of your questions and provide updates throughout the year. Please read on for answers to some questions posed by the MNCPA for this column.
You’re fairly new to working for the state, having joined the Minnesota Department of Revenue in 2019 before being named commissioner late last year. Tell us a little bit about your experience as executive director of the Minnesota Lottery and as COO and CFO for Minneapolis Public Schools, both of which are closely linked with the state coffers, and how those roles positioned you to lead the department?
At Minneapolis Public Schools (MPS), I learned a lot about state processes. It was the first time I testified before the Legislature and felt the anxiety and pressure that can bring. I gained a deep understanding of how the state budget works, what it’s like to advocate for state resources for the school district and how to form alliances with advocates and other groups to help with that.
MPS is a large, matrixed and fast-paced organization. As COO, I learned how to navigate that kind of organization, how it’s connected both within and to the state and how it all works together. It’s similar to how the state enterprise is set up — a microcosm in a lot of ways.
The Lottery is a different kind of organization, much smaller and more emphasis on the legislative aspect of things. The Lottery’s needs are unique; not as much advocacy and working with other organizations. We kind of had to forge our own path. I gained a deeper understanding of both the legislative process and executive-branch rulemaking. I wasn’t at that level with MPS, but as executive director of the Lottery I had to really know those pieces of the process.
Those two points in my career — and the lessons I learned from them — have really helped me get to where I am and prepared me for this role.
Trends are not often found in state budgets. Yet here we find ourselves amid a pandemic and Minnesota has faced projected deficits, and now a surplus, for the next budget cycle. How do you view the next few years from a state budget planning viewpoint — in working with Gov. Tim Walz and key legislators with whom you may still be developing relationships — and the responsibilities charged to you and your staff with respect to the work done with CPAs and the public?
First, I feel blessed to be part of an administration that’s focused on fiscal responsibility. We’re committed to a balanced budget and focused on meeting the needs of Minnesotans who’ve been most impacted by the recent recession due to the pandemic. That’s the crux of Gov. Walz’s COVID-19 recovery budget. I’m motivated and amped about presenting that budget, supporting it and discussing why it’s put together the way it is.
The recovery we’re starting to experience is great, but the governor realizes we also need to figure out how to expand on that. He understands the recession and the recovery have been uneven as to who has been affected, and how.
We cannot leave behind those who have been struggling the most through this past year. We need to help our children regain what they’ve lost in their learning, our small businesses who have been hardest hit and our working families who are struggling to get by. Gov. Walz has prioritized these three groups in his budget.
I’m excited to be able to work toward that. It’s crucial for this year, but also as we go forward. For the next biennium and beyond, we’re working to create and maintain a balanced budget for Minnesota — but also to meet the needs of all parts of our state.
Among other things, COVID-19 exacerbated some of the inequality already present in our state when it comes to education and economic opportunity. As we go forward, Gov. Walz will put forth budgets that continue to focus on how we address these inequities while maintaining fiscal responsibility and growth in our economy in Minnesota.
Our state tax code tends to change over the years. We’ll continue working hard to make sure our partners, including the MNCPA, and the public have the information and tools they need to meet their tax obligations and make use of the tax opportunities open to them.
Gov. Tim Walz, after taking office, immediately created the One Minnesota Council on Inclusion and Equity, aimed at eliminating disparities to ensure every Minnesotan has an opportunity to thrive. How important is this effort to you and, as the first Black man appointed to the head of Revenue, do you feel there’s any extra weight that milestone carries?
I’m very passionate about the governor’s One Minnesota initiative, which emphasizes diversity, equity and inclusion. He’s committed to addressing disparities in all areas of our life and the state. This creates more opportunities for people to interact with people who are different from them in various ways.
One of the things I bring to this role is my unique perspective. As commissioner, I’ll continue, and accelerate, Revenue’s emphasis on forming relationships with all of our state’s communities so we can better understand their needs and how our policies and procedures impact them.
The department has developed great relationships with groups like the MNCPA, and we’ll continue to build on these partnerships. You bring a distinct perspective and deep knowledge to our conversation as you advocate for your members and their clients.
At the same time, I’m very aware of other communities that we’ve not always engaged with in the same way. I’ll emphasize the importance of cultivating those relationships and push our agency as a whole to do that. Hopefully, I can bring a different level of empathy to this role as we expand our engagement and policy work with these communities.
I’d be lying if I said there isn’t any extra weight. Being the first is always challenging; some added pressure goes with that. I may have to put up with some things that I shouldn’t, but to be candid, I’ve put up with some of them for years — just now on a bigger stage. I can shy away from that or use it as a positive; I choose to use it as a positive.
Is there anything else you want share or that our members should know about the Department of Revenue?
Going forward, we’re centered around how we serve our customers and what our engagement with them looks like. We want to make sure our customers are in compliance with the state tax code, which is always important. But how we go about that, how we make sure we’re hearing the voices from all across our state, is crucial.
That applies to our existing partnerships with the MNCPA and other groups, and to new or emerging partners in our state’s various communities. In some cases, we may have to expand or change some of the things we’ve been doing on outreach and engagement. In other cases, we’ll have to put additional resources toward reaching out to different communities in different ways, toward translation efforts that maybe we haven’t always been able to do in the past.
We recently updated our department strategies and mission statement — “Working together to fund the future for all of Minnesota” — to reflect how diversity, equity and inclusion are a key part of what we do. We need to make sure that we view our work through this lens, in all our efforts. We’re looking at some of our policies and procedures to make sure we are focused on equity.
That’s a big deal for us. It’s a big deal across the enterprise, quite frankly. It’s going to be a culture shift for us in some respects. All of those things are going to take time and will not necessarily be easy. But the benefits that come from this shift are great. We look forward to moving more in that kind of direction.
Robert Doty is the commissioner of the Minnesota Department of Revenue. You can find the department’s updated mission statement and strategies on its website at www.revenue.state.mn.us/about-us.
