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The End of Session
Price of Government report shows the percent of Minnesotans’ income spent on
state and local services projected to decrease
ST.
PAUL – Today, Minnesota Management and Budget (MMB) released their End of Session Price of
Government report, which measures the cost of all general government
services statewide, seeking to answer the question: How much do Minnesotans pay
to state and local governments in total?
In
2018, the percent of an individual’s income going to state and local government
will be 15.4 percent, down from 15.8 percent in 2011. The report also projects
that by 2021, the Price of Government will be at 14.2 percent, based on current
projections.
“Over
the past eight years, we have made many important investments in communities
throughout Minnesota,” MMB Commissioner Myron Frans said. “From pre-k and
all-day kindergarten to strengthening infrastructure, Minnesotans are receiving
more of the high-quality services they know and deserve, without seeing an
impact on their budget. Today’s report is truly a reminder of Governor Dayton’s
brand of sound fiscal management.”
The
Price of State Government is equal to total state and local government revenue divided
by statewide personal income. All state taxes, property taxes, special
assessments, fees, and charges are included. For example in fiscal year 2018, the
total state and local revenue of $47.66 million, when divided by total
Minnesota personal income of $309.28 million, equals the 2018 Price of
Government of 15.4 percent. MMB has calculated this annual financial index
since fiscal year 1991.
This report is being released on the heels of a national report from Pew Trusts,
which shows that Minnesota is one of the top 10 states most prepared for an
economic downturn.
A Legacy of Sound Fiscal Management
When
Governor Dayton took office in 2011, the state faced a $6 billion deficit and
had no money in the reserves. By making smart tax reforms in 2013, the state
began building a solid financial foundation. Today, Minnesota has nearly $2
billion in reserves and nine of the last ten budget and economic forecasts have
shown surpluses. Earlier this year two of the state’s credit rating agencies,
Fitch and Standard and Poor’s (S+P), restored Minnesota’s AAA bond ratings,
which is the highest credit rating a state can receive.
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Media Contact:
Chris Kelly, Minnesota Management and Budget
Phone: 651-259-3692
Email: chris.kelly@state.mn.us
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