City LGA Differences Among Various Plans

Governor Dayton’s city Local Government Aid (LGA) proposal increases the LGA appropriation in the upcoming two year budget, while the House freezes the appropriation and the Senate cuts it, as noted in the preceding North Star article. Knowledge of the appropriation...

AHCA: Huge Losses in Premium Aid for Minnesotans

Earlier this year, conservatives attempted to repeal the Affordable Care Act (ACA) and replace it with the American Health Care Act (AHCA), otherwise known as Trumpcare. These efforts were stymied by the rivaling factions within the Republican party, but had the bill...

City Aid Declines Under Most LGA Proposals

For the last four and a half decades, the city Local Government Aid (LGA) program has helped cities fund essential services and control property tax levels, but in real (i.e., inflation-adjusted) dollars per capita, city LGA is currently less than half of what it was...

One-Sided Reverse Referendum Undermines Local Governance

A movement is again afoot in Minnesota to allow anti-tax voters to create new hurdles to local levy increases. Under the moniker of “taxpayer empowerment,” this initiative would allow voters as few as ten percent of the number voting in the last general election to...

Basic School Revenue Hasn't Kept Up with Inflation

Most of the assistance that Minnesota school districts receive from the state comes in the form of basic general education formula revenue. This revenue establishes a base level of funding for all districts, from which—in theory—basic school operating expenses can be...

Are 529 Tax Breaks Working?

In order to incentivize families to save for their children’s college education, Minnesota and other states are exploring income tax credits and deductions for 529 plans. Named after section 529 of the Internal Revenue Code, these investment vehicles were designed to...

Federal Taxes in the MTIS: In or Out?

The Minnesota Tax Incidence Study (MTIS) looks at the impact of state and local taxes by income group, in an attempt ascertain who is paying Minnesota taxes. Since it was first published by the Minnesota Department of Revenue (MDOR) in 1991, the MTIS has been one of...

Shocking Implications of Private School Tax Credits

Conservatives continue to push vouchers and private school tax credits, despite new research (summarized in a recent North Star article) indicating that this approach is counter-productive to improving student achievement. Minnesota is among the states considering...

Sharp Jump in Homeowner Property Taxes

Property taxes paid as a percent of income have declined for the typical Minnesota homeowner since 2007, according to the Minnesota Center for Fiscal Excellence (MCFE), formerly the Minnesota Taxpayers Association. As noted in the previous article in this series,...

AHCA: Huge Increase in State Costs

In the February 2017 forecast, Minnesota Management & Budget and the State Council of Economic Advisors warned of potential downside risk to the state budget resulting from changes in federal policy. Earlier this month, one of these threats came into sharper...