Posts Tagged ‘Inflation’

Real Per Pupil State Aid Has Declined Since FY 2003

The conservative Minnesota Business Partnership recently challenged our contention that real (i.e., inflation-adjusted) per pupil state aid has declined since fiscal year (FY) 2003. North Star’s assertion in regard to declining state aid is completely accurate—if you use an inflation index appropriate to measuring the impact of inflation on school district finances. Only by using…

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Conservative Spending Claims Don’t Add Up

A recent chart from the Republican Party of Minnesota, reproduced below, purports to show that Minnesota’s general fund budget is growing about 12 percent faster than the state’s economy and about 25 percent faster than the rate of inflation from 2012 to 2017. The information in that graph is, however, generally inaccurate. The Republican Party…

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The "Real" Story Behind State and Local Government Inflation

When measuring changes over time in income, wages, revenue, spending, or just about anything else that is measured in dollars, amounts are commonly adjusted for the decline in the purchasing power of the dollar due to inflation. Without inflation adjustments, we have no idea of the real purchasing power of the dollars being earned, collected,…

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