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Headlines
Needy States Use Housing Aid Cash to Plug Budgets
Only 27 states have devoted all their funds from the banks to housing programs, according to a report by Enterprise Community Partners, a national affordable housing group. So far about 15 states have said they will use all or most of the money for other purposes.
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Headlines
Census state pension survey 2007-1010
The U.S. Census collects key data from selected state and municipal pension funds every year. State Budget Solutions consolidated the data for the 222 largest state administered defined benefit pension funds from fiscal years 2007 through 2010 to present an overview of each state's pension funds. See how your state is doing.
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Headlines
Latest studies show growing pension peril
Recent studies by the U.S. Census Bureau, GAO, Federal Reserve Bank of Cleveland and the Harvard Kennedy School detail the continued deterioration and chance of failure of public pension systems within the overall local and state government fiscal crisis. Read these studies and be aware of the extent of this pressing problem.
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Headlines
Local and state governments look for creative ways to fund transportation projects
Constrained budgets and deficit reduction efforts mean federal fewer dollars for infrastructure. As such, the burden is shifting more to state and local governments, which are being forced to find creative funding solutions.
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Research
"GASB Won't Let Me" - A False Objection to Public Pension Reform
Pension reform is a separate issue from amortization. These two issues have been conflated by those invoking the GASB proviso for closed DB plans, but this has only sown confusion. This is clearly demonstrated when the reform is structured with amortization payments on total payroll. In this way, the growth in the base for amortization payments is unaffected by the reform, so there is no policy reason for changing the schedule of these payments. The funding schedule for amortization is a red herring, irrelevant to the fundamental policy decision for pension reform. Amortization pays for past debts; pension reform lays a path toward a responsible future.
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Budget timeframe: Biennial
Fiscal Year begins: July 1
Gov. Mark Dayton
130 State Capitol
75 Rev. Dr. Martin Luther King, Jr. Boulevard
St. Paul, MN 55155
Phone: (651) 296-3391
Fax: (651) 296-2089
http://www.governor.state.mn.us/
Jim Schowalter, Commissioner
Minnesota Management and Budget
658 Cedar Street
400 Centennial Building
St. Paul, MN 55155
Phone (651) 296-5900
Fax (651) 296-8685
www.mmb.state.mn.us
2012 Legislative Calendar: Regular Session convenes January 24, adjourns May 21.
Legislative Budget Leaders:
Rep. Greg Davids (R), Chair, House Taxes Committee, rep.greg.davids@house.mn (651) 296-7881
Rep. Mary Liz Holberg (R), Chair, House Ways and Means Committee, rep.maryliz.holberg@house.mn (651) 296-6926
Sen. Claire Robling (R), Chair, Senate Finance Committee, sen.claire.robling@senate.mn (651) 296-4123
Sen. Julianne E. Ortman (R), Chair, Senate Taxes Committee, sen.julianne.ortman@senate.mn (651) 296-5640
Want a more robust, long-term look at your state's fiscal health, beyond the budget? There are two parts: Click here for the FY2011 Comprehensive Annual Financial Report (CAFR) compiled by the state government, and click here for information on the state's pension liabilities.
Minnesota is required to pass a "balanced budget." Section 16A.11, Subdivision 2 of the State law requires the governor to present the biennial budget summary, setting forth the "balanced relation between the total proposed expenditures and the total anticipated income". Section 16A.156 provides the governor and relevant commissioner(s) must reduce expenditures if probable receipts for the general fund will be less than anticipated. Minnesota law forbids the carrying over of a deficit from one year to the next. Such requirements did not prevent the State from reporting budget deficits (negative net transactions) for two of the three years inspected.
The State maintains 28 individual funds, two of which are reported as major: the General Fund and Federal Fund. The only funds budgeted are the General Fund and non-major Special Revenue Funds. This is also evident from the State's annual reports that there are significant differences between actual and budgeted figures. [from the Institute for Truth in Accounting]
Find the state's bond ratings here.
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Pensions :
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HEADLINES
Census state pension survey 2007-1010
The U.S. Census collects key data from selected state and municipal pension funds every year. State Budget Solutions consolidated the data for the 222 largest state administered defined benefit pension funds from fiscal years 2007 through 2010 to present an overview of each state's pension funds. See how your state is doing.
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HEADLINES
Latest studies show growing pension peril
Recent studies by the U.S. Census Bureau, GAO, Federal Reserve Bank of Cleveland and the Harvard Kennedy School detail the continued deterioration and chance of failure of public pension systems within the overall local and state government fiscal crisis. Read these studies and be aware of the extent of this pressing problem.
- View All Minnesota articles
Revenue :
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HEADLINES: Minnesota, Iowa
Two Heads Are Better Than One: Bipartisan Tax Reform
Bipartisanship aside, tax reform is imminent in a number of states. Since 2000, at least 37 states conducted new tax studies, studying how to better increase revenue elasticity, improve overall fairness, reduce efficiency, and ease administrative and compliance efforts.
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HEADLINES: Minnesota
Top earners cool to paying more
Minnesotans making more than $1 million a year say the plan would hurt the state's economy.
- View All Minnesota articles
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Solutions: Minnesota
The very serious reasons for replacing MinnesotaCare with subsidies for private health insurance
Replacing MinnesotaCare with a state subsidy for individually owned private health plans is one of the key parts of the effort to redesign how the state provides health care to the poor. This can save $100 million on childless adults and up to $600 million if everyone is included.
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Solutions: Minnesota
New Budget Tools for a Balanced Minnesota
To keep the state budget in balance over the long term, Minnesota must better manage the spending side of the ledger. Over the past 40 years, total state expenditures from all funds increased at double-digit rates in all but four biennia. To control spending, Minnesota must adopt bold new budget tools and processes.
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Solutions: Minnesota
Public Pensions in Minnesota
Are Minnesota taxpayers being exposed to significant risks from pension liabilities? Or is Minnesota successfully avoiding the problems other state and local governments are struggling with? What are the current and long-term costs of our public pension decision-making? Are there reforms we can pursue to improve both the financial health of the public pension system and the accountability of pension decision-making to state taxpayers? These are the questions addressed in this report.
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Solutions: Minnesota, Virginia
States Buying Smarter: Lessons learned from Minnesota and Virginia
States spend nearly $200 billion annually purchasing goods and services-paying for everything from building roads and bridges to buying desks and computers. Conservative estimates suggest that reform of government procurement practices could save 5 to 10 percent of that total spending.
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Solutions: Minnesota
Preparing For an Even More Demanding Future: American Experiment's 2010-11 Budget Recommendations
Lawmakers' top priority for this session is erasing the $4.6 billion shortfall forecast for the 2010-11 biennium. In doing so, they must also work to create permanent solutions that not only erase the present shortfall but also avert future shortfalls. Due to certain demographic realities-led by the swelling numbers of baby boomers entering retirement-government spending is projected to outpace tax revenues for the next 25 years. Under these trends, business as usual cannot continue. Consequently, big changes to state programs and possibly the tax code will be necessary.
- View All Solutions
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Census state pension survey 2007-1010
The U.S. Census collects key data from selected state and municipal pension funds every year. State Budget Solutions consolidated the data for the 222 largest state administered defined benefit pension funds from fiscal years 2007 through 2010 to present an overview of each state's pension funds. See how your state is doing.
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Latest studies show growing pension peril
Recent studies by the U.S. Census Bureau, GAO, Federal Reserve Bank of Cleveland and the Harvard Kennedy School detail the continued deterioration and chance of failure of public pension systems within the overall local and state government fiscal crisis. Read these studies and be aware of the extent of this pressing problem.
-
"GASB Won't Let Me" - A False Objection to Public Pension Reform
Pension reform is a separate issue from amortization. These two issues have been conflated by those invoking the GASB proviso for closed DB plans, but this has only sown confusion. This is clearly demonstrated when the reform is structured with amortization payments on total payroll. In this way, the growth in the base for amortization payments is unaffected by the reform, so there is no policy reason for changing the schedule of these payments. The funding schedule for amortization is a red herring, irrelevant to the fundamental policy decision for pension reform. Amortization pays for past debts; pension reform lays a path toward a responsible future.
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OPINION
Public pension 'best practices' omit 1 thing: How do we pay benefits?
Hey, young public employees, what are you going to do when your pension checks bounce after you paid in for decades? That is what will happen in many - maybe all - states and municipalities sooner or later if they do not reform right now. If you want to see the future, just look at Illinois. One citizen there did, and came up with a real reform plan that might work.
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OPINION
COMMENTARY Municipal, state workers should take their pension money and run, fast
Public employees should take their pension money now and run to avoid risk of getting reduced benefits - or nothing - in the future. It's the best deal for them and for taxpayers. A growing chorus of credible voices including the Government Accountability Office, a Federal Reserve bank and now the Harvard Kennedy School Mossavar-Rahmani Center for Business and Government confirm state and local government finances are "spiraling out of control" and even draconian reforms only make it "more likely" that future benefits will paid in full.
- View All Pensions
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OPINION: Pensions
Public pension 'best practices' omit 1 thing: How do we pay benefits?
Hey, young public employees, what are you going to do when your pension checks bounce after you paid in for decades? That is what will happen in many - maybe all - states and municipalities sooner or later if they do not reform right now. If you want to see the future, just look at Illinois. One citizen there did, and came up with a real reform plan that might work.
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OPINION: Pensions
COMMENTARY Municipal, state workers should take their pension money and run, fast
Public employees should take their pension money now and run to avoid risk of getting reduced benefits - or nothing - in the future. It's the best deal for them and for taxpayers. A growing chorus of credible voices including the Government Accountability Office, a Federal Reserve bank and now the Harvard Kennedy School Mossavar-Rahmani Center for Business and Government confirm state and local government finances are "spiraling out of control" and even draconian reforms only make it "more likely" that future benefits will paid in full.
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BLOG: Pensions
COMMENTARY: This plan could save municipal, state workers' pension checks
Hey, young public employees, what are you going to do when your pension checks bounce after you paid in for decades? That is what will happen in many - maybe all - states and municipalities sooner or later if they do not reform right now. If you want to see the future, just look at Illinois. One citizen there did, and came up with a real reform plan that might work.
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BLOG: Pensions, Federal Government Impact
COMMENTARY: Fed screams softly in warning about public pension crisis
This is what it sounds like when the Federal Reserve Bank screams: "Much has been written about the various headwinds restraining economic activity over the near term. However, our economy also has other headwinds to confront over the medium- to-longer-term. ... the finances of some state and local governments are also under stress and in need of serious adjustments." - Federal Reserve Bank of Cleveland President Sandra Pianalto
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BLOG: Budget Gimmicks, Budget Processes and Systems, Measures to Balance Budgets
Can Minnesota Legislate Out Another Shutdown?
In 2011, the Minnesota government shutdown stalled business, disrupted the lives of citizens and state employees alike, and created a less than favorable impression of government competency. The record-setting nineteen-day closure led lawmakers to vow then that Minnesotans will never experience another government shutdown. Last week, in an effort to follow through with their promise, a Minnesota Senate committee is set to consider a cluster of bills that would make various state functions "shutdown proof."
- View All Blog & Opinions
