Minnesota Municipal Income Portfolio N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number    811-07680

Minnesota Municipal Income Portfolio Inc.

(Exact name of registrant as specified in charter)

800 Nicollet Mall, Minneapolis, MN	55402
(Address of principal executive offices)	(Zip code)

Charles D. Gariboldi, Jr., 800 Nicollet Mall, Minneapolis, MN 55402

(Name and address of agent for service)

Registrant’s telephone number, including area code:   800-677-3863

Date of fiscal year end:          August 31

Date of reporting period:       February 29, 2008

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.

Item 1. Report to Shareholders

Semiannual Report

February 29, 2008

MXA

Minnesota Municipal
Income Portfolio

Minnesota Municipal Income Portfolio

Our Image – George Washington

His rich legacy as patriot and leader is widely recognized as embodying the sound judgment, reliability, and strategic vision that are central to our brand. Fashioned in a style reminiscent of an 18th century engraving, the illustration conveys the symbolic strength and vitality of Washington, which are attributes that we value at First American.

Table of Contents

1	Explanation of Financial Statements
2	Fund Overview
3	Financial Statements
6	Notes to Financial Statements
14	Schedule of Investments
17	Notice to Shareholders

NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

Explanation of FINANCIAL STATEMENTS

As a shareholder in the fund, you receive shareholder reports semiannually. We strive to present this financial information in an easy-to-understand format; however, for many investors, the information contained in this shareholder report may seem very technical. So, we would like to take this opportunity to explain several sections of the shareholder report.

The Statement of Assets and Liabilities lists the assets and liabilities of the fund on the last day of the reporting period and presents the fund's net asset value ("NAV") and market price per share. The NAV is calculated by dividing the fund's net assets (assets minus liabilities) by the number of shares outstanding. The market price is the closing price on the exchange on which the fund's shares trade. This price, which may be higher or lower than the fund's NAV, is the price an investor pays or receives when shares of the fund are purchased or sold. The investments, as presented in the Schedule of Investments, comprise substantially all of the fund's assets. Other assets include cash and receivables for items such as income earned by the fund but not yet received. Liabilities include payables for items such as fund expenses incurred but not yet pa id.

The Statement of Operations details the dividends and interest income earned from investments as well as the expenses incurred by the fund during the reporting period. Fund expenses may be reduced through fee waivers or reimbursements. This statement reflects total expenses before any waivers or reimbursements, the amount of waivers and reimbursements (if any), and the net expenses. This statement also shows the net realized and unrealized gains and losses from investments owned during the period. The Notes to Financial Statements provide additional details on investment income and expenses of the fund.

The Statement of Changes in Net Assets describes how the fund's net assets were affected by its operating results and distributions to shareholders during the reporting period. This statement is important to investors because it shows exactly what caused the fund's net asset size to change during the period.

The Statement of Cash Flows is required when a fund has a substantial amount of illiquid investments, a substantial amount of the fund's securities are internally valued, or the fund carries some amount of debt. When presented, this statement explains the change in cash during the reporting period. It reconciles net cash provided by and used for operating activities to the net increase or decrease in net assets from operations and classifies cash receipts and payments as resulting from operating, investing, and financing activities.

The Notes to Financial Statements disclose the organizational background of the fund, its significant accounting policies, federal tax information, fees and compensation paid to affiliates, and significant risks and contingencies. Included within the notes to financial statements is the Financial Highlights. This table provides a per-share breakdown of the components that affected the fund's NAV for the current and past reporting periods. It also shows total return, expense ratios, net investment income ratios, and portfolio turnover rates. The net investment income ratios summarize the income earned less expenses, divided by the average net assets. The expense ratios represent the percentage of average net assets that were used to cover operating expenses during the period. The portfolio turnover rate represents the percentage of the fund's holdings that have changed over the course of the period, and gives an idea of how long the fund holds onto a particular security. A 100% turnover rate implies that an amount equal to the value of the entire portfolio is turned over in a year through the purchase or sale of securities.

The Schedule of Investments details all of the securities held in the fund and their related dollar values on the last day of the reporting period. Securities are usually presented by type (bonds, common stock, etc.) and by industry classification (healthcare, education, etc.). This information is useful for analyzing how your fund's assets are invested and seeing where your portfolio manager believes the best opportunities exist to meet your objectives. Holdings are subject to change without notice and do not constitute a recommendation of any individual security. The Notes to Financial Statements provide additional details on how the securities are valued.

We hope this guide to your shareholder report will help you get the most out of this important resource.

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Fund OVERVIEW

Portfolio Allocation

As a percentage of total investments on February 29, 2008

Healthcare Revenue	21	%
General Obligations	19	%
Housing Revenue	16	%
Prerefunded1	14	%
Utility Revenue	10	%
Education Revenue	6	%
Tax Revenue	4	%
Short-Term Investment	3	%
Miscellaneous Revenue	2	%
Leasing Revenue	2	%
Recreation Authority Revenue	1	%
Authority Revenue	1	%
Transportation Revenue	1	%
	100	%

¹  Within the Schedule of Investments, prerefunded issues are classified under their applicable industries.

Bond Credit Quality Breakdown²

As a percentage of long-term investments on February 29, 2008

AAA	38	%
AA	9	%
A	20	%
BBB	11	%
BB	1	%
Nonrated	21	%
	100	%

²  Individual security ratings are based on information from Moody's Investors Service, Standard & Poor's, and/or Fitch. If there are multiple ratings for a security, the lowest rating is used unless ratings are provided by all three agencies, in which case the middle rating is used.

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FINANCIAL STATEMENTS

Statement of Assets and Liabilities February 29, 2008 (unaudited)

Assets:
Investments, at market value (cost: $90,294,516) (note 2)	$	86,555,579
Cash		67
Receivable for accrued interest		1,043,921
Prepaid expenses and other assets		30,507
Total assets		87,630,074
Liabilities:
Payable for investments purchased on a when-issued basis (note 2)		2,145,180
Payable for preferred share distributions (note 3)		9,140
Payable for investment advisory fees (note 5)		24,952
Payable for administrative fees (note 5)		14,259
Payable for transfer agent fees		5,026
Payable for professional fees		19,805
Payable for other expenses		2,194
Total liabilities		2,220,556
Preferred shares, at liquidation value		31,100,000
Net assets applicable to outstanding common shares	$	54,309,518
Net assets applicable to outstanding common shares consist of:
Common shares and additional paid-in capital	$	57,707,687
Undistributed net investment income		594,049
Accumulated net realized loss on investments and futures contracts		(253,281	)
Net unrealized depreciation of investments		(3,738,937	)
Net assets applicable to outstanding common shares	$	54,309,518
Net asset value and market price of common shares:
Net assets applicable to outstanding common shares	$	54,309,518
Common shares outstanding (authorized 200 million shares of $0.01 par value)		4,146,743
Net asset value per share	$	13.10
Market price per share	$	13.10
Liquidation preference of preferred shares (note 3):
Net assets applicable to preferred shares	$	31,100,000
Preferred shares outstanding (authorized one million shares)		1,244
Liquidation preference per share	$	25,000

See accompanying Notes to Financial Statements.

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FINANCIAL STATEMENTS continued

Statement of Operations For the Six-Month Period Ended February 29, 2008 (unaudited)

Investment Income:
Interest from unaffiliated investments	$	2,255,183
Dividends from unaffiliated money market fund		22,454
Dividends from affiliated money market fund		77
Total investment income		2,277,714
Expenses (note 5):
Investment advisory fees		157,857
Administrative fees		90,204
Remarketing agent fees		36,185
Custodian fees		2,414
Directors' fees		12,349
Listing fees		7,064
Postage and printing fees		11,371
Transfer agent fees		15,119
Professional fees		22,408
Insurance fees		5,955
Pricing fees		4,945
Other expenses		11,579
Total expenses		377,450
Net investment income		1,900,264
Net realized and unrealized gains (losses) on investments and futures contracts (notes 2 and 4):
Net realized gain (loss) on: Investments		11,168
Futures contracts		(38,845	)
Net change in unrealized appreciation or depreciation of: Investments		(3,936,776	)
Net loss on investments		(3,964,453	)
Distributions to preferred shareholders (note 2):
From net investment income		(379,992	)
From net realized gain on investments		(310,356	)
Total distributions		(690,348	)
Net decrease in net assets applicable to common shares resulting from operations	$	(2,754,537	)

See accompanying Notes to Financial Statements.

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Statement of Changes in Net Assets

	Six-Month Period Ended 2/29/08 (unaudited)			Year Ended 8/31/07
Operations:
Net investment income	$	1,900,264		$	3,846,142
Net realized gain (loss) on:
Investments		11,168			588,064
Futures contracts		(38,845	)		(258,354	)
Net change in unrealized appreciation or depreciation of:
Investments		(3,936,776	)		(4,167,565	)
Futures contracts		—			195,638
Distributions to preferred shareholders (note 2):
From net investment income		(379,992	)		(975,744	)
From net realized gain on investments		(310,356	)		(197,684	)
Net decrease in net assets applicable to common shares resulting from operations		(2,754,537	)		(969,503	)
Distributions to common shareholders (note 2):
From net investment income		(1,306,224	)		(2,508,781	)
From net realized gain on investments		(436,237	)		(595,887	)
Total distributions		(1,742,461	)		(3,104,668	)
Total decrease in net assets applicable to common shares		(4,496,998	)		(4,074,171	)
Net assets applicable to common shares at beginning of period		58,806,516			62,880,687
Net assets applicable to common shares at end of period	$	54,309,518		$	58,806,516
Undistributed net investment income	$	594,049		$	380,001

See accompanying Notes to Financial Statements.

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Notes to FINANCIAL STATEMENTS (unaudited as to February 29, 2008)

(1) Organization
  Minnesota Municipal Income Portfolio Inc. (the "fund") is registered under the Investment Company Act of 1940 (as amended) as a non-diversified, closed-end management investment company. The fund invests primarily in Minnesota municipal securities that, at the time of purchase, are rated investment grade or are unrated and deemed to be of comparable quality by FAF Advisors, Inc. ("FAF Advisors"). The fund may invest up to 20% of its total assets in municipal securities that, at the time of purchase, are rated lower than investment grade or are unrated and deemed to be of comparable quality by FAF Advisors. The fund's investments may include municipal derivative securities, such as inverse floating rate and inverse interest-only municipal securities , which may be more volatile than traditional municipal securities in certain market conditions. The fund's investments also may include repurchase agreements, futures contracts, options on futures contracts, options, and interest rate swaps, caps, and floors. Fund shares are listed on the American Stock Exchange under the symbol MXA.

The fund concentrates its investments in Minnesota and therefore may have more credit risk related to the economic conditions of Minnesota than a portfolio with a broader geographical diversification.

(2) Summary of Significant Accounting Policies
  Security Valuations

Debt obligations exceeding 60 days to maturity are valued by an independent pricing service that  has been approved by the fund's board of directors. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service but where an active market exists are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. Debt obligations with 60 days or less remaining until maturity may be valued at their amortized cost, which approximates market value.

The following investment vehicles, when held by the fund, are priced as follows: Exchange listed futures and options on futures are priced at their last sale price on the exchange on which they are principally traded, as determined by FAF Advisors, on the day the valuation is made. If there were no sales on that day, futures and options on futures will be valued at the last reported bid price. Options on securities, indices, and currencies traded on Nasdaq or listed on a stock exchange, whether domestic or foreign, are valued at the last sale price on Nasdaq or on any exchange on the day the valuation is made. If there were no sales on that day, the options will be valued at the last sale price on the previous valuation date. Last sale prices are obtained from an independent pricing service. Forward contracts (other than currency forward contracts), swaps, and over-the-counter options on securities, indices, and currencies are v alued at the quotations received from an independent pricing service, if available.

When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the fund's board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased or sold. If events occur that materially affect the value of securities between the close of trading in those

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securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value.

As of February 29, 2008, the fund had no fair valued securities.

Security Transactions and Investment Income

For financial statement purposes, the fund records security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including accretion of bond discounts and amortization of bond premiums, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes.

Inverse Floaters

As part of its investment strategy, the fund may invest in certain securities for which the potential income return is inversely related to changes in a floating interest rate ("inverse floaters"). In general, income on inverse floaters will decrease when short-term interest rates increase and increase when short-term interest rates decrease. Inverse floaters may be characterized as derivative securities and may subject the fund to the risks of reduced or eliminated interest payments and losses of invested principal. In addition, inverse floaters have the effect of providing investment leverage and as a result, the market values of such securities will generally be more volatile than those of fixed-rate, tax-exempt securities. To the extent the fund invests in inverse floaters, the net asset value of the fund's shares may be more volatile than if the fund did not invest in such securities. As of and for the six-month period ende d February 29, 2008, the fund had no outstanding investments in inverse floaters.

Repurchase Agreements

For repurchase agreements entered into with certain broker-dealers, the fund, along with other affiliated registered investment companies, may transfer uninvested cash balances into a joint trading account, the daily aggregate balance of which is invested in repurchase agreements secured by U.S. government or agency obligations. Securities pledged as collateral for all individual and joint repurchase agreements are held by the fund's custodian bank until maturity of the repurchase agreement. All agreements require that the daily market value of the collateral be in excess of the repurchase amount, including accrued interest, to protect the fund in the event of a default. As of February 29, 2008, the fund had no outstanding repurchase agreements.

Futures Transactions

In order to protect against changes in interest rates, the fund may buy and sell interest rate futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. government securities in an amount equal to 5% of the purchase price indicated in the futures contract (initial margin). Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund's basis in the contract.

Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting

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Notes to FINANCIAL STATEMENTS continued

in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that the fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund's statement of assets and liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the period will be recognized as capital gains (losses) for federal income tax purposes. As of February 29, 2008, the fund had no outstanding futures contracts.

Securities Purchased on a When-Issued Basis

Delivery and payment for securities that have been purchased by the fund on a when-issued or forward-commitment basis can take place a month or more after the transaction date. Such securities do not earn interest, are subject to market fluctuation, and may increase or decrease in value prior to their delivery. The fund segregates assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of the fund's net asset value if the fund makes such purchases while remaining substantially fully invested. As of February 29, 2008, the fund had when-issued or forward-commitment securities outstanding with a total cost of $2,145,180.

In connection with the ability to purchase securities on a when-issued basis, the fund may also enter into dollar rolls in which the fund sells securities purchased on a forward-commitment basis and simultaneously contracts with a counterparty to repurchase similar (same type, coupon, and maturity), but not identical securities on a specified future date. As an inducement for the fund to "rollover" its purchase commitments, the fund receives negotiated amounts in the form of reductions of the purchase price of the commitment. Dollar rolls are considered a form of leverage. As of and for the six-month period ended February 29, 2008, the fund had no dollar roll transactions.

Taxes

Federal

The fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required.

Net investment income and net realized gains and losses may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to deferred straddle losses. To the extent these differences are permanent, reclassifications are made to the appropriate capital accounts in the fiscal period that the differences arise.

The character of distributions made during the fiscal period from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal period in which amounts are distributed may differ from the fiscal period that the income or realized gains or losses were recorded by the fund.

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The character of common and preferred share distributions paid during the six-month period ended February 29, 2008 (estimated) and the fiscal year ended August 31, 2007, were as follows:

	2/29/08		8/31/07
Distributions paid from:
Tax exempt income	$	1,687,045	$	3,468,191
Ordinary income		136,843		15,900
Long-term capital gains		609,750		789,212
	$	2,433,638	$	4,273,303

At August 31, 2007, the fund's most recently completed fiscal year, the components of accumulated earnings on a tax basis were as follows:

Undistributed tax exempt income	$	379,713
Undistributed ordinary income		146,912
Accumulated long-term capital gain		442,103
Unrealized appreciation		140,070
Accumulated earnings	$	1,108,798

State

Minnesota taxable net income is generally based on federal taxable income. The portion of tax-exempt dividends paid by the fund that is derived from interest on Minnesota municipal bonds will be excluded from Minnesota taxable net income of individuals, estates, and trusts, provided that the portion of the tax-exempt dividends paid from these obligations represents 95% or more of the exempt-interest dividends paid by the fund. The remaining portion of these dividends, and dividends that are not exempt-interest dividends or capital gains distributions, will be included in the Minnesota taxable net income of individuals, estates, and trusts, except for dividends directly attributable to interest on obligations of the U.S. government, its territories and possessions.

In 1995, Minnesota enacted a statement of intent that interest on obligations of Minnesota governmental units and Indian tribes be included in the net income of individuals, estates and trusts for Minnesota income tax purposes if a court determines that Minnesota's exemption of such interest and its taxation of interest on obligations of governmental issuers in other states unlawfully discriminates against interstate commerce. See Minn. Stat. § 289A.50, subd. 10. This provision applies to taxable years that begin during or after the calendar year in which any such determination becomes final. In 2006, the Kentucky Court of Appeals held that the state's exemption of interest on its own bonds and those of its political subdivisions and its taxation of interest on the bonds of other states and their political subdivisions unlawfully discriminates against interstate commerce. The Kentucky Supreme Court declined to review this d ecision, but the U.S. Supreme Court agreed to review it and heard oral arguments in November 2007. The U.S. Supreme Court's decision is pending.

If the U.S. Supreme Court were to affirm the Kentucky decision, it is likely that Minnesota's tax treatment of state and local government bonds would also be held to unlawfully discriminate against interstate commerce. If Minnesota's treatment of state and local government bonds were held to unlawfully discriminate against interstate commerce, a court would have to decide upon a remedy for the tax years at issue in the case. Even if the remedy applied to those and other years preceding the decision were to exempt other states' bond interest rather than to tax Minnesota bond interest, application of the 1995 statute (or an amended version of that statute) to subsequent years could cause interest on the Minnesota bonds held by the fund to become taxable by Minnesota (in whole or in part) and the market value of the bonds to decline.

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Notes to FINANCIAL STATEMENTS continued

Distributions to Shareholders

Distributions from net investment income are made monthly for common shareholders and weekly for preferred shareholders. Common share distributions are recorded as of the close of business on the ex-dividend date and preferred share dividends are accrued daily. Net realized gains distributions, if any, will be made at least annually. Distributions are payable in cash or, for common shareholders pursuant to the fund's dividend reinvestment plan, reinvested in additional common shares of the fund. Under the dividend reinvestment plan, common shares will be purchased in the open market.

Deferred Compensation Plan

Under a Deferred Compensation Plan (the "Plan"), non-interested directors of the First American Family of Funds may participate and elect to defer receipt of part or all of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of open-end First American Funds, preselected by each director. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the results of operations during the reporting period. Actual results could differ from these estimates.

(3) Remarketed Preferred Shares
  As of February 29, 2008, the fund had 1,244 remarketed preferred shares (622 shares in Class "M" and 622 shares in Class "W") ("RP® shares") with a liquidation preference of $25,000 per share. The dividend rate on the RP® shares is adjusted every seven days (on Mondays for Class "M" and on Wednesdays for Class "W"), as determined by the remarketing agent.

Normally, the dividend rates on the RP® shares are set at the market clearing rate determined through a remarketing process that brings together bidders who wish to buy RP® shares and holders of RP® shares who wish to sell. Since February 13, 2008, however, sell orders have exceeded bids and the regularly scheduled remarketings for the fund's RP® shares have failed. When a remarketing fails, the fund is required to pay the maximum applicable rate on the RP® shares to holders of such shares for successive dividend periods until such time as the shares are successfully remarketed. The maximum applicable rate on the RP® shares is 110% of the higher of (1) the applicable AA Composite Commercial Paper Rate or (2) 90% of the Taxable Equivalent of the Short-Term Municipal Bond Rate.

During any dividend period, the maximum applicable rate may be higher than the dividend rate that would have been set had the remarketing been successful. This would increase the fund's cost of leverage and reduce the fund's common share earnings. On February 29, 2008, the maximum applicable rates were 4.19% for Class "M" and 4.37% for Class "W."

In the event of a failed remarketing, holders of RP® shares will continue to receive dividends at the maximum applicable rate, but generally will not be able to sell their shares until the next successful remarketing. There is no way to predict when future remarketings might succeed in attracting sufficient buyers for the shares offered.

RP® is a registered trademark of Merrill Lynch & Company ("Merrill Lynch").

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(4) Investment Security Transactions
  Cost of purchases and proceeds from sales of securities other than temporary investments in short-term securities, for the six-month period ended February 29, 2008, aggregated $19,516,799 and $14,512,539, respectively.

(5) Expenses
  Investment Advisory Fees

Pursuant to an investment advisory agreement (the "Agreement"), FAF Advisors, a subsidiary of U.S. Bank National Association ("U.S. Bank"), manages the fund's assets and furnishes related office facilities, equipment, research, and personnel. The Agreement provides FAF Advisors with a monthly investment advisory fee in an amount equal to an annualized rate of 0.35% of the fund's average weekly net assets including preferred shares. For its fee, FAF Advisors provides investment advice and, in general, conducts the management and investment activities of the fund.

The fund may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the fund and the related money market funds, FAF Advisors will reimburse the fund an amount equal to the investment advisory fee received from the related money market funds that is attributable to the assets of the fund.

Administrative Fees

FAF Advisors serves as the fund's administrator pursuant to an administration agreement between FAF Advisors and the fund. Under this agreement, FAF Advisors receives a monthly administrative fee in an amount equal to an annualized rate of 0.20% of the fund's average weekly net assets including preferred shares. For its fee, FAF Advisors provides numerous services to the fund including, but not limited to, handling the general business affairs, financial and regulatory reporting, and various other services.

Remarketing Agent Fees

The fund has entered into a remarketing agreement with Merrill Lynch (the "Remarketing Agent"). The remarketing agreement provides the Remarketing Agent with a monthly fee in an amount equal to an annualized rate of 0.25% of the fund's average amount of RP® shares outstanding. For its fee, the Remarketing Agent will remarket shares of RP® tendered to it on behalf of shareholders and will determine the applicable dividend rate for each seven-day dividend period.

Custodian Fees

U.S. Bank serves as the fund's custodian pursuant to a custodian agreement with the fund. The custodian fee charged to the fund is equal to an annual rate of 0.005% of average weekly net assets, including preferred shares. These fees are computed weekly and paid monthly.

Under this agreement, interest earned on uninvested cash balances is used to reduce a portion of the fund's custodian expenses. These credits, if any, are disclosed as "Indirect payments from the custodian" in the Statement of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred, which will increase the fund's custodian expenses. For the six-month period ended February 29, 2008, custodian fees were increased by $252 as a result of overdrafts and reduced by $0 as a result of interest earned.

Other Fees and Expenses

In addition to the investment advisory, administrative, remarketing agent, and custodian fees, the fund is responsible for paying most other operating expenses, including: outside directors' fees and

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Notes to FINANCIAL STATEMENTS continued

expenses, listing fees, postage and printing of shareholder reports, transfer agent fees and expenses, legal, auditing, and accounting services, insurance, interest, taxes, and other miscellaneous expenses. For the six-month period ended February 29, 2008, legal fees and expenses of $3,627 were paid to a law firm of which an Assistant Secretary of the Fund is a partner.

Expenses that are directly related to the fund are charged directly to the fund. Other operating expenses of the First American Family of Funds are allocated to the fund on several bases, including evenly across all funds, allocated based on relative net assets of all funds within the First American Family of Funds or a combination of both methods.

(6) Indemnifications
  The fund enters into contracts that contain a variety of indemnifications. The fund's maximum exposure under these arrangements is unknown. However, the fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

(7) New Accounting Pronouncements
  On July 13, 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the "more-likely-than-not" threshold would be recorded as a tax expense in the current year. The fund has adopted FIN 48 and as of February 29, 2008, the fun d did not have any tax positions that did not meet the "more-likely-than-not" threshold of being sustained by the applicable tax authority.

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value, and requires additional disclosure about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of February 29, 2008, the fund does not believe the adoption of FAS 157 will materially impact the amounts reported in the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain measurements reported in the Statement of Operations for a fiscal period.

Minnesota Municipal Income Portfolio 2008 Semiannual Report
12

(8) Financial Highlights
  Per-share data for a share of capital shares outstanding throughout each period and selected information for each period are as follows:

	Six-Month Period Ended February 29, 2008			Year Ended August 31,						Seven-Month Period Ended August 31,
	(unaudited)			2007			2006			2005
Per-Share Data
Net asset value, common shares, beginning of period	$	14.18		$	15.16		$	15.51		$	15.52
Operations:
Net investment income		0.46			0.93			0.90			0.56
Net realized and unrealized gains (losses) on investments and futures contracts		(0.96	)		(0.88	)		(0.21	)		0.04
Distributions to preferred shareholders:
From net investment income		(0.09	)		(0.24	)		(0.22	)		(0.07	)
From net realized gain on investments		(0.07	)		(0.05	)		—			—
Total from operations		(0.66	)		(0.24	)		0.47			0.53
Distributions to common shareholders:
From net investment income		(0.31	)		(0.60	)		(0.81	)		(0.54	)
From net realized gain on investments		(0.11	)		(0.14	)		(0.01	)		—
Total distributions to common shareholders		(0.42	)		(0.74	)		(0.82	)		(0.54	)
Net asset value, common shares, end of period	$	13.10		$	14.18		$	15.16		$	15.51
Market value, common shares, end of period	$	13.10		$	13.28		$	14.80		$	16.44
Selected Information
Total return, common shares, net asset value (a)		(4.85	)% (e)		(1.68	)%		3.23	%		3.49	% (e)
Total return, common shares, market value (b)		1.81	% (e)		(5.42	)%		(5.02	)%		4.90	% (e)
Net assets applicable to common shares, end of period (in millions)	$	54		$	59		$	63		$	64
Ratio of expenses to average weekly net assets applicable to common shares (c)		1.28	% (f)		1.25	%		1.21	%		1.18	% (f)
Ratio of net investment income to average weekly net assets applicable   to common shares (c)		6.44	% (f)		6.19	%		5.96	%		6.19	% (f)
Portfolio turnover rate		17	%		31	%		64	%		14	%
Net assets applicable to remarketed preferred shares, end of period (in millions)	$	31		$	31		$	31		$	31
Asset coverage per remarketed preferred share (in thousands) (d)	$	69		$	72		$	76		$	77
Liquidation preference and market value per remarketed preferred share (in thousands)	$	25		$	25		$	25		$	25

	Year Ended January 31,
	2005			2004			2003
Per-Share Data
Net asset value, common shares, beginning of period	$	15.57		$	15.29		$	14.67
Operations:
Net investment income		0.93			0.97			1.03
Net realized and unrealized gains (losses) on investments and futures contracts		0.10			0.31			0.59
Distributions to preferred shareholders:
From net investment income		(0.08	)		(0.06	)		(0.09	)
From net realized gain on investments		—			—			—
Total from operations		0.95			1.22			1.53
Distributions to common shareholders:
From net investment income		(0.95	)		(0.94	)		(0.91	)
From net realized gain on investments		(0.05	)		—			—
Total distributions to common shareholders		(1.00	)		(0.94	)		(0.91	)
Net asset value, common shares, end of period	$	15.52		$	15.57		$	15.29
Market value, common shares, end of period	$	16.21		$	16.33		$	15.56
Selected Information
Total return, common shares, net asset value (a)		6.34	%		8.18	%		10.73	%
Total return, common shares, market value (b)		5.90	%		11.36	%		13.85	%
Net assets applicable to common shares, end of period (in millions)	$	64		$	65		$	63
Ratio of expenses to average weekly net assets applicable to common shares (c)		1.17	%		1.19	%		1.19	%
Ratio of net investment income to average weekly net assets applicable   to common shares (c)		6.08	%		6.32	%		6.87	%
Portfolio turnover rate		19	%		34	%		23	%
Net assets applicable to remarketed preferred shares, end of period (in millions)	$	31		$	31		$	31
Asset coverage per remarketed preferred share (in thousands) (d)	$	77		$	77		$	76
Liquidation preference and market value per remarketed preferred share (in thousands)	$	25		$	25		$	25

(a)  Assumes reinvestment of distributions at net asset value.

(b)  Assumes reinvestment of distributions at actual prices pursuant to the fund's dividend reinvestment plan.

(c)  Ratios do not reflect the effect of dividend payments to preferred shareholders; income ratios reflect income earned on assets attributable to preferred shares, where applicable.

(d)  Represents net assets applicable to common shares plus preferred shares at liquidation value divided by preferred shares outstanding.

(e)  Total return has not been annualized.

(f)  Annualized.

Minnesota Municipal Income Portfolio 2008 Semiannual Report
13

Schedule of INVESTMENTS (unaudited)

Minnesota Municipal Income Portfolio  February 29, 2008

Description of Security	Par		Market Value (a)
(Percentages of each investment category relate to net assets applicable to outstanding common shares)
Municipal Long-Term Investments — 155.2%
Authority Revenue — 1.8%
Duluth Seaway Port Authority, Cargill Inc. Project, 4.20%, 5/1/13	$	1,000,000	$	997,790
Education Revenue — 12.7%
Higher Education Facility, Augsburg College,
5.00%, 5/1/23		500,000		460,435
5.00%, 5/1/28		1,800,000		1,633,914
Higher Education Facility, College of Art & Design, 5.00%, 5/1/26		1,000,000		918,160
Higher Education Facility, University of St. Thomas, 5.00%, 4/1/23		800,000		750,720
Higher Education Facility, University of St. Thomas (Prerefunded 4/1/08 @ 100), 5.38%, 4/1/18 (b)		400,000		401,016
St. Paul Housing and Redevelopment Authority, Community Peace Academy Project, 5.00%, 12/1/36		500,000		389,015
St. Paul Housing and Redevelopment Authority, St. Paul Academy and Summit School, 5.00%, 10/1/24		500,000		481,955
St. Paul Housing and Redevelopment Authority, St. Paul Academy and Summit School (Prerefunded 10/1/09 @ 100), 5.50%, 10/1/24 (b)		1,000,000		1,041,490
University of MN Special Purpose Revenue, State Supported Stadium Debt, 4.00%, 8/1/12		800,000		822,088
				6,898,793
General Obligations — 29.7%
Delano Independent School District (FSA) (Crossover Refunded 2/1/11 @ 100), 5.88%, 2/1/25 (b)		1,000,000		1,071,810
Duluth Independent School District Number 709, Series A (FSA), 4.25%, 2/1/23		1,000,000		897,390
Hennepin County Crossover Refunding, Series A, 5.00%, 12/1/14		2,500,000		2,716,375
Metropolitan Council Minneapolis-St. Paul Metropolitan Area, 5.00%, 3/1/20 (c)		2,000,000		2,063,740
Minnesota State, 5.00%, 8/1/13		2,000,000		2,157,900
Minnesota State Refunding, 5.00%, 8/1/13		1,000,000		1,078,950
Minnesota State Taxable, 5.00%, 8/1/10		1,000,000		1,052,670
Puerto Rico Commonwealth, Series A, 5.00%, 7/1/28		1,500,000		1,366,005
Sauk Rapids Independent School District (MBIA) (Crossover Refunded 2/1/11 @ 100), 5.75%, 2/1/23 (b)		3,500,000		3,739,225
				16,144,065
Healthcare Revenue — 49.9%
Agriculture and Economic Development, Health Care System, Fairview Hospital (MBIA), 5.75%, 11/15/26		35,000		35,398
Colorado Health Facilities Authority, Volunteers of America Care, 5.20%, 7/1/22		750,000		657,967
Columbia Heights Multifamily & Health Care Facilities Revenue, Crest View Project, 5.70%, 7/1/42		1,000,000		876,990
Cuyuna Range Hospital District,
5.00%, 6/1/29		1,000,000		880,680
5.50%, 6/1/35		1,000,000		926,900
Duluth Health Care Facility, Benedictine Health System-St. Mary's Hospital (Prerefunded 2/15/14 @ 100), 5.25%, 2/15/33		1,500,000		1,369,770
Glencoe Health Care Facilities, Glencoe Regional Health Services (Prerefunded 4/1/11 @ 101), 7.50%, 4/1/31 (b)		650,000		730,288
Golden Valley Health Care Facilities, Covenant Retirement Communities, 5.50%, 12/1/25		680,000		648,094
Illinois Finance Authority Revenue, Franciscan Communities, 5.50%, 5/15/37		675,000		556,848
Illinois Finance Authority, Three Crowns Park Plaza, 5.88%, 2/15/26		500,000		447,905
Inver Grove Heights Nursing, Presbyterian Home Care, 5.38%, 10/1/26		800,000		729,112
Maple Grove Health Care Systems Revenue, Maple Grove Hospital, 5.25%, 5/1/25		1,000,000		964,830
Maple Grove Health Care Facilities Revenue, North Memorial Health Care, 5.00%, 9/1/35		2,000,000		1,771,380
Marshall Health Care Facility, Weiner Medical Center Project, 6.00%, 11/1/28		750,000		756,008
Minneapolis Health Care, Allina Health Systems (Prerefunded 11/15/12 @ 100), 5.75%, 11/15/32 (b)		3,000,000		3,288,330
Minneapolis Health Care, Fairview Health Services (Prerefunded 5/15/12 @ 101), 5.63%, 5/15/32 (b)		2,000,000		2,181,820
Monticello, Big Lake Community Hospital District, 6.20%, 12/1/22		1,000,000		987,340
Moorhead Economic Development Authority, Housing Development Eventide Project, 5.15%, 6/1/29		700,000		577,199
Pine City Health Care and Housing Revenue, North Branch (GNMA), 4.80%, 10/20/26		1,000,000		880,880
Pine City Health Care and Housing Revenue, North Branch (GNMA), 5.00%, 10/20/47		325,000		284,167
Shakopee Health Care Facility, St. Francis Regional Medical Center, 5.25%, 9/1/34		1,000,000		886,600
St. Louis Park Health Care Facilities, Park Nicollet Health Systems (Prerefunded 7/1/14 @ 100), 5.25%, 7/1/30 (b)		1,250,000		1,359,263
St. Paul Housing and Redevelopment Authority Health Care Revenue, Allina Health, Series A (MBIA), 5.00%, 11/15/19		1,500,000		1,481,970

See accompanying Notes to Schedule of Investments.

Minnesota Municipal Income Portfolio 2008 Semiannual Report
14

Minnesota Municipal Income Portfolio (continued)

Description of Security	Par		Market Value (a)
St. Paul Housing and Redevelopment Authority Hospital Revenue, HealthEast Project, 6.00%, 11/15/30	$	550,000	$	515,669
St. Paul Housing and Redevelopment Authority, Nursing Home Episcopal, 5.63%, 10/1/33		1,000,000		852,550
St. Paul Housing and Redevelopment Authority, Rossy and Richard Shaller Family, Sholom East Project, 5.25%, 10/1/42		650,000		526,617
St. Paul Port Authority Lease, HealthEast Midway Campus,
5.75%, 5/1/25		100,000		94,369
5.88%, 5/1/30		500,000		469,245
6.00%, 5/1/30		900,000		859,617
Winona Health Care Facilities, Winona Health Obligated Group, 6.00%, 7/1/34		500,000		496,680
				27,094,486
Housing Revenue — 27.1%
Cottage Grove Senior Housing Revenue, Cottage Grove Project, 5.00%, 12/1/31		475,000		376,770
Coon Rapids Multifamily Housing Revenue, Margaret Place Apartments, 6.25%, 5/1/18		500,000		502,225
Eden Prairie Multifamily Housing, Preserve Place (GNMA), 5.60%, 7/20/28		400,000		401,852
Maplewood Multifamily Revenue, Carefree Cottages II (AMT) (FNMA), 4.80%, 4/15/34		1,000,000		961,240
Minneapolis Housing Revenue, Keeler Apartments Project, 5.00%, 10/1/37		750,000		559,200
Minneapolis Multifamily Housing Revenue, Vantage Flats Project (AMT) (GNMA), 5.20%, 10/20/48		1,000,000		881,520
Minneapolis-St. Paul Housing, Finance Board Single Family Mortgage Revenue, Mortgage Backed City Living (AMT) (FHLMC) (FNMA) (GNMA), 5.00%, 11/1/38		1,738,351		1,530,183
Minnesota State Housing Finance Agency, Residential Housing, Series D (AMT), 4.70%, 7/1/27		2,750,000		2,409,577
Moorhead Senior Housing Revenue, Sheyenne Crossing Project, 5.65%, 4/1/41		800,000		690,712
New Hope Multifamily Revenue, Northridge B (FHA) (GNMA) (Prerefunded 7/1/16 @ 100), 6.05%, 1/1/17 (b)		370,000		392,585
Pine County Housing and Redevelopment Authority, 5.00%, 2/1/31		1,000,000		923,020
Prior Lake Senior Housing, Shepards Path Senior Housing, 5.70%, 8/1/36		500,000		453,805
Rochester Multifamily Housing, Weatherstone Apartments (AMT) (Mandatory Put 9/1/17 @ 100), 6.38%, 9/1/37		2,800,000		2,992,080
St. Anthony Housing, Silver Lake Village, 5.63%, 2/1/31		1,000,000		839,600
State Housing and Redevelopment Authority, Goodhue County Apartments (Prerefunded 1/1/10 @ 100), 6.63%, 1/1/24 (b)		345,000		365,538
Worthington Housing Authority Revenue, Meadows Worthington Project, 5.25%, 11/1/28		500,000		425,395
				14,705,302
Leasing Revenue — 2.4%
Andover Economic Development Authority Public Facility Lease Revenue, Andover Community Center (Crossover Refunded 2/1/14 @ 100), 5.13%, 2/1/24 (b)		250,000		264,652
Puerto Rico Public Buildings Authority, Series M, 6.25%, 7/1/31		1,000,000		1,033,640
				1,298,292
Miscellaneous Revenue — 3.2%
Minneapolis Revenue, University Gateway Project, 4.50%, 12/1/31		2,000,000		1,743,600
Recreation Authority Revenue — 4.0%
Moorhead Golf Course, 5.88%, 12/1/21		490,000		479,333
St. Paul Port Authority Hotel Facility, Radisson Kellogg Project (Prerefunded 8/1/08 @ 103), 7.38%, 8/1/29 (b)		900,000		944,811
St. Paul Recreational Facilities, Highland National Project, 5.00%, 10/1/25		750,000		726,098
				2,150,242
Tax Revenue — 6.1%
Minneapolis Development Revenue, Limited Tax Supported Common Bond (AMT)
4.85%, 12/1/17		580,000		582,424
4.88%, 12/1/18		610,000		603,772
5.13%, 6/1/22		500,000		471,220
Minneapolis Tax Increment Revenue, Grant Park Project, 5.35%, 2/1/30		1,000,000		813,510
Minneapolis Tax Increment Revenue, St. Anthony Falls Project,
5.65%, 2/1/27		450,000		388,566
5.75%, 2/1/27		500,000		437,335
				3,296,827
Transportation Revenue — 1.8%
Minneapolis and St. Paul Metropolitan Airport Commission (AMT) (FGIC), 5.25%, 1/1/21		1,000,000		971,740

See accompanying Notes to Schedule of Investments.

Minnesota Municipal Income Portfolio 2008 Semiannual Report
15

Schedule of INVESTMENTS (unaudited)

Minnesota Municipal Income Portfolio (concluded)

Description of Security	Par/Shares		Market Value (a)
Utility Revenue — 16.5%
Rochester Electric Utility Revenue, 5.00%, 12/1/30	$	1,000,000	$	957,980
Southern Minnesota Municipal Power Agency, Zero Coupon Bond (MBIA), 5.22%, 1/1/19 (d)		10,000,000		5,720,500
5.46%, 1/1/23 (d)		2,000,000		899,260
5.56%, 1/1/24 (d)		3,300,000		1,384,449
				8,962,189
Total Municipal Long-Term Investments (cost: $88,002,263)				84,263,326
Short-Term Investment — 4.2%
Federated Minnesota Municipal Cash Trust (cost: $2,292,253)		2,292,253		2,292,253
Total Investments (e) — 159.4% (cost: $90,294,516)			$	86,555,579
Preferred Shares at Liquidation Value — (57.3)%				(31,100,000	)
Other Assets and Liabilities, Net — (2.1)%				(1,146,061	)
Total Net Assets — 100.0%			$	54,309,518

Notes to Schedule of Investments:

(a)  Securities are valued in accordance with procedures described in note 2 in Notes to Financial Statements.

(b)  Prerefunded issues are backed by U.S. government obligations, which ensure the timely payment of principal and interest. Crossover refunded issues are backed by the credit of the refunding issuer. In both cases, the bonds mature at the date and price indicated.

(c)  Security purchased on a when-issued basis. On February 29, 2008, the total cost of investments purchased on a when-issued basis was $2,145,180 or 3.9% of total net assets. See note 2 in Notes to Financial Statements.

(d)  For zero-coupon investments, the interest rate shown is the effective yield as of February 29, 2008.

(e)  On February 29, 2008, the cost of investments for federal income tax purposes was $90,294,516. The aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows:

Gross unrealized appreciation	$	1,615,696
Gross unrealized depreciation		(5,354,633	)
Net unrealized depreciation	$	(3,738,937	)

AMT–Alternative Minimum Tax As of February 29, 2008, the aggregate market value of securities subject to the AMT is $11,403,756, which represents 21.0% of net assets applicable to common shares.

  FGIC–Financial Guaranty Insurance Corporation

  FHA–Federal Housing Administration

  FHLMC–Federal Home Loan Mortgage Corporation

  FNMA–Federal National Mortgage Association

  FSA–Financial Security Assurance

  GNMA–Government National Mortgage Association

  MBIA–Municipal Bond Insurance Association

Minnesota Municipal Income Portfolio Semiannual Report 2008
16

Notice to SHAREHOLDERS (unaudited)

ANNUAL MEETING RESULTS

An annual meeting of the fund's shareholders was held on December 4, 2007. Each matter voted upon at that meeting, as well as the number of votes cast for, against or withheld, the number of abstentions, and the number of broker non-votes with respect to such matters, are set forth below.

(1)  The fund's preferred shareholders elected the following directors:

	Shares Voted "For"		Shares Withholding Authority to Vote
Roger A. Gibson		1,189		2
Leonard W. Kedrowski		1,189		2

(2)  The fund's common and preferred shareholders, voting as a single class, elected the following directors:

	Shares Voted "For"		Shares Withholding Authority to Vote
Benjamin R. Field III		3,766,184		29,037
Victoria J. Herget		3,764,684		30,537
John P. Kayser		3,767,601		27,620
Richard K. Riederer		3,768,286		26,935
Joseph D. Strauss		3,765,782		29,439
Virginia L. Stringer		3,761,501		33,720
James M. Wade		3,764,511		30,710

(3)  The fund's common and preferred shareholders, voting as a single class, ratified the selection by the fund's board of directors of Ernst & Young LLP as the independent registered public accounting firm for the fund for the fiscal period ending August 31, 2008. The following votes were cast regarding this matter:

Shares Voted "For"		Shares Voted "Against"		Abstentions		Broker Non-Votes
	3,770,724		8,849		15,648		—

HOW TO OBTAIN A COPY OF THE FUND'S PROXY VOTING POLICIES AND PROXY VOTING RECORD

A description of the policies and procedures that the fund uses to determine how to vote proxies relating to portfolio securities, as well as information regarding how the fund voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, is available (1) without charge upon request by calling 800.677.FUND; (2) at www.firstamericanfunds.com; and (3) on the U.S. Securities and Exchange Commission's website at www.sec.gov.

FORM N-Q PORTFOLIO HOLDINGS INFORMATION

The fund is required to file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The fund's Forms N-Q are available (1) without charge upon request by calling 800.677.FUND and (2) on the U.S. Securities and Exchange Commission's website at http://www.sec.gov. In addition, you may review and copy the fund's Forms N-Q at the Commissions Public Reference Room in Washington D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.

QUARTERLY PORTFOLIO HOLDINGS

The fund will make portfolio holdings information publicly available by posting the information at www.firstamericanfunds.com on a quarterly basis. The fund will attempt to post such information within 10 business days of the calendar quarter end.

Minnesota Municipal Income Portfolio 2008 Semiannual Report
17

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BOARD OF DIRECTORS

Virginia Stringer

Chairperson of Minnesota Municipal Income Portfolio
Governance Consultant; former Owner and President of Strategic Management
Resources, Inc.

Benjamin Field III

Director of Minnesota Municipal Income Portfolio
Retired; former Senior Financial Advisor, Senior Vice President,
Chief Financial Officer, and Treasurer of Bemis Company, Inc.

Roger Gibson

Director of Minnesota Municipal Income Portfolio
Director of Charterhouse Group, Inc.

Victoria Herget

Director of Minnesota Municipal Income Portfolio
Investment Consultant; former Managing Director of Zurich Scudder Investments

John Kayser

Director of Minnesota Municipal Income Portfolio
Retired; former Principal, Chief Financial Officer, and Chief Administrative Officer of
William Blair & Company, LLC

Leonard Kedrowski

Director of Minnesota Municipal Income Portfolio
Owner and President of Executive and Management Consulting, Inc.

Richard Riederer

Director of Minnesota Municipal Income Portfolio
Owner and Chief Executive Officer of RKR Consultants, Inc.

Joseph Strauss

Director of Minnesota Municipal Income Portfolio
Owner and President of Strauss Management Company

James Wade

Director of Minnesota Municipal Income Portfolio
Owner and President of Jim Wade Homes

Minnesota Municipal Income Portfolio's Board of Directors is comprised entirely of independent directors.

P.O. Box 1330

Minneapolis, MN 55440-1330

Minnesota Municipal Income Portfolio

2008 Semiannual Report

FAF Advisors, Inc., is a wholly owned subsidiary of U.S. Bank National Association, which is a wholly owned subsidiary of U.S. Bancorp.

This document is printed on paper containing10%postconsumer waste.

4/2008    0074-08    MXA-SAR

Item 2—Code of Ethics

Not applicable to the semi-annual report.

Item 3—Audit Committee Financial Expert

Not applicable to the semi-annual report.

Item 4—Principal Accountant Fees and Services

Not applicable to the semi-annual report.

Item 5—Audit Committee of Listed Registrants

Not applicable to the semi-annual report.

Item 6—Schedule of Investments

The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7—Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to the semi-annual report.

Item 8—Portfolio Managers of Closed-End Management Investment Companies

Not applicable to the semi-annual report.

Item 9—Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Neither the registrant nor any “affiliated purchaser,” as defined in Rule 10b-18(a)(3) under the Exchange Act, purchased any shares or other units of any class of the registrant’s equity securities that is registered pursuant to Section 12 of the Exchange Act.

Item 10—Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A, or this item.

Item 11—Controls and Procedures

(a)The registrant’s Principal Executive Officer and Principal Financial Officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the date of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form
N-CSR was recorded, processed, summarized and reported timely.

(b)There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12—Exhibits

(a)(1)Not applicable.

(a)(2)Certifications of the Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule
30a-2(a) under the Investment Company Act are filed as exhibits hereto.

(a)(3)Not applicable.

(b)Certifications of the Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule
30a-2(b) under the Investment Company Act are filed as exhibits hereto.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Minnesota Municipal Income Portfolio Inc.
By:
	/s/ Thomas S. Schreier, Jr.
	Thomas S. Schreier, Jr.
	President
Date: May 5, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:
	/s/ Thomas S. Schreier, Jr.
	Thomas S. Schreier, Jr.
	President
Date: May 5, 2008
By:
	/s/ Charles D. Gariboldi, Jr.
	Charles D. Gariboldi, Jr.
	Treasurer
Date: May 5, 2008