Category Archives: education

Is Minnesota Really A “Big Spending” State?

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This past winter and spring, the DFL-controlled state House, Senate, and Executive branch produced much more for ordinary families than Republicans ever did when they were in power.  It’s not close.

As a result, things are getting heady for Walz and DFL legislators. To cite just one example of the national acclaim they’re getting, Washington Post columnist E.J. Dionne recently lavished praise on the Minnesota DFL’s 2023 legislative tour de force with a sloppy wet kiss of a column.

“The avalanche of progressive legislation that the state’s two-vote Democratic majority in the Minnesota House and one-vote advantage in the state Senate have enacted this year is a wonder to behold.

It’s no wonder former president Barack Obama tweeted recently: ‘If you need a reminder that elections have consequences, check out what’s happening in Minnesota.’

Democrats in the state are known as the Democratic-Farmer-Labor Party from their merger with a third party in the 1940s. True to the name, the party’s agenda combined social concerns such as abortion rights with what Long called “bread-and-butter, populist things that sell everywhere in the state.”

Well, E.J., thanks to the rural-urban division that the Minnesota Republican Party relentlessly promotes on the campaign trail, the DFL achievements don’t actually sell well “everywhere” in the state.  According to an early May 2023 KSTP-TV/Survey USA poll, Walz still has much lower approval ratings in rural parts of the state (51% in the southern region, 42% in the western region, and 46% in the northeastern region) than he has in the Twin Cities seven-county metropolitan area (60% approval).

Still, Governor Walz’s 2023 performance is selling relatively well statewide. He has the approval of 54% of Minnesotans, compared to the disapproval of 41%. In a purple state that Trump only lost by 1.5 points in 2016, Walz’s 13-point net positive approval rating is impressive. Progressivism is selling pretty well in this purple state.

However, the political debate is just heating up. We can expect Republicans campaigning in 2026 to focus on the unpopular, vague notion of “government spending increases,” rather than the DFL’s specific policy changes.  After all, polls show that individual DFL-enacted achievements are popular. For instance, 80% of Americans support paid family and medical leave, 80% of Americans support more child care assistance for families, 76% of Minnesotans support universal background checks for gun purchases, and 69% of Americans support more school funding, to name just a few of the many popular policies that DFLers passed during the 2023 session. Therefore, Republicans will focus on how much more the DFL-controlled state government is spending, not the DFL’s signature policy achievements.

It is true that the state budget is increasing under DFLers in 2024. But is state government spending really that high?

According to usgovernmentspending.com, state spending in Minnesota in 2024 will be 10.15% of the state’s GDP, making it a middling 25th among the 50 states. Yawn.

So, sure, our Republican-controlled “race-to-the-bottom” neighbors in Iowa (9.87% of GDP), Wisconsin (9.64% of GDP), North Dakota (9.08% of GDP), and South Dakota (8.12% of GDP) are spending less than in Minnesota. No surprise there.

But state spending in Minnesota is nothing like what is happening annually in the top ten states of New Mexico (17.64%), Alaska (16.96%), West Virginia (16.42%), Vermont (16.12%), Hawaii (15.88%), Kentucky (15.18), Oregon (15.14%), Mississippi (14.94%), Louisiana (13.78%), and Maine (13.51%).

Despite Minnesota Republicans’ red-faced hyperbole about the DFL’s “out of control spending,” in a national context Minnesota is, meh, just average. 

Scott Jensen’s Unanswered $15,000,000,000 Question

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Minnesota Republican gubernatorial candidate Scott Jensen proposes to eliminate the state income tax.  At first blush, that might sound good to inflation-weary taxpayers. But to balance the state budget, such a change would necessitate $15 billion per year in service cuts and/or increases in other types of more regressive taxes.

Quite irresponsibly, Jensen won’t say what services he would cut, or what taxes he would increase, to balance the state budget.  But make no mistake, serious pain would result.  Jensen’s plan would necessitate massive cuts in education and/or health care, and/or a huge increase in property taxes, or other types of taxes that are more regressive than the state income tax. 

Shifting from the progressive state income tax to the regressive property tax is popular among the wealthiest Minnesotans, because that change would greatly benefit them. The progressive state income tax requires that the wealthiest Minnesotans pay a higher share of their income in taxes than is paid by the poorest Minnesotans.  On the other hand, regressive property, sales, and/or excise taxes put more of a burden on lower-income Minnesotans compared to the wealthiest Minnesotans.

Wealthy doctors like Jensen, multi-millionaire professional athletes like his running mate Matt Birk, and the most financially privileged Minnesotans who disproportionately fund Republican candidates don’t want to pay their fair share in taxes.  This is a political payoff to them.

Jensen’s proposal not only is a grossly inequitable giveaway to the wealthiest Minnesotans, it’s also dishonest.  Jensen only discloses the benefits – no more income tax bill! – without disclosing the costs – crippling school cutbacks, slashed health care services for vulnerable Minnesotans, and/or crushing property tax increases. All of those costs are enormously unpopular with Minnesotans, so Scott Jensen simply refuses to answer that critical $15,000,000,0000 question.

Jensen isn’t explaining the downside of eliminating the state income tax, but reporters should be doing that. Unfortunately, it’s barely happening.  Compared to heavy front page reporting on Walz’s actions related to a nonprofit fraud prosecution and the debate over the number of debates, this hugely consequential policy proposal has received relatively scant coverage.

One exception is the Minnesota Reformer. Though the Reformer has relatively light readership, it has done thoughtful and constructive reporting, such as this: 

“Minnesota has a steeply progressive individual income tax, meaning households with higher incomes have a higher tax rate as a share of their income compared to lower income households. Eliminating individual income taxes would disproportionately burden low-income Minnesotans while giving huge tax cuts to the state’s wealthiest.

‘Progressive income taxes are integral to having budgets that can meet the needs of all citizens, and they’re also really important in ensuring racial and socioeconomic equity,’ said Neva Buktus, state policy analyst for the Institute on Taxation and Economic Policy. ‘Eliminating the personal income tax would completely throw that out the window.’

Each year, the Institute on Taxation and Economic Policy creates a ranking of state tax systems and how they foster income inequality.

The six least equitable in the U.S. are among the nine states with no individual income taxes. Minnesota’s progressive personal income tax makes it one of the least regressive in the country — 47th out of 50. That means our lowest income earners get a better deal than nearly every other American when it comes to state and local taxes. 

‘If you’re going to eliminate the income tax, there’s no way to spin it. It disproportionately benefits the wealthiest Minnesotans by a long shot,’ Buktus said.”

At other major news outlets, my best guess is that reporters are shrugging off the issue relative to other issues because they believe that elimination of the state income tax could never pass the Legislature.   

It’s not reporters’ jobs to gauge likelihood of passage.  After all, no one knows what the future makeup of the Legislature might be if voters sweep Republicans into office, as historical trends portend.  Instead, reporters are supposed to explain the candidates’ major policy proposals and analyze the consequences so voters can make fully informed decisions.

That’s just not happening as much as it should. Whatever the thinking in Twin Cities newsrooms about Jensen’s most radical and reckless policy proposal, their silence on the topic has been deafening.