Minneapolis Police Overspent Overtime Budget

Officials admitted the department spent $33 million on overtime despite a $6 million annual budget.

Updated on Sept. 28, 2026 in Law Enforcement

Bold flat-color editorial illustration of a heavy civic building facade and star emblem, evoking institutional fiscal scrutiny. — Minneapolis police officials acknowledged a $27 million budget overrun last year, a fiscal failure under investigation by the City Council. AI Illustration. Upload story photo >

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Minneapolis police officials have acknowledged significant fiscal mismanagement after the department exceeded its overtime budget by $27 million last year. The department spent a total of $33 million on overtime costs compared to the original $6 million allocation.

Why it matters

The massive budget shortfall has prompted intense scrutiny from the Minneapolis City Council, which is investigating how such significant financial oversight occurred. Officials cited chronic understaffing and the need to maintain response times for 911 calls as the primary drivers behind the excessive spending.

Nine MPD leaders were questioned by the city council regarding the $33 million expenditure. The department has since hired Sujata Kommuru as a director of financial operations to address the oversight.

The players

Bill Peterson

He is the interim police chief for the Minneapolis Police Department who took office in June 2026.

Sujata Kommuru

She serves as the newly hired director of financial operations for the Minneapolis Police Department.

Minneapolis City Council

This is the legislative body of the city that is currently investigating the fiscal mismanagement of the police department.

Brian O'Hara

He was the police chief of Minneapolis until he was ousted from his position before June 2026.

The details

The fiscal failure stemmed from high turnover in the executive team that left the department without a finance director, leaving a chief of staff as the sole person tracking expenses. Consequently, officers covered 40% of all shifts using overtime, a system that now features three people monitoring the budget.

The department spent $33 million on overtime throughout 2025.
Bill Peterson was appointed as interim police chief in June 2026.
Officials formally admitted to the mismanagement on September 28, 2026.

Legal Context

The oversight failure marks a significant departure from standard Minneapolis municipal budget oversight regulations. This case highlights broader trends in municipal accounting transparency following years of staffing shortages in major urban police departments.

The disclosure has led to increased demand for transparency regarding how city tax dollars support public safety services. Residents can expect further council hearings as the city works to stabilize police department operations and financial controls.

The takeaway

Effective financial management is essential for maintaining trust between municipal agencies and the public they serve. The city is now prioritizing the expansion of its financial department to prevent future budgetary crises.