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September, 2024 Federal Funding, Minnesota’s Fiscal Exposure, and the November Election Minnesota is in the early stages of its experiment regarding how much of a federal government’s textbook redistribution and social welfare interests and responsibilities a state government can take on with a balanced budget requirement and without incurring fiscal and economic consequences. While these policies have elevated the state’s exposure to federal tax and fiscal policy changes, the results of the 2024 national election may make the experiment a much bigger budget lift.
March, 2024 The Reasons Why Automatic Inflationary Adjustments to Local aids is a Bad Idea Legislators are once again looking to reestablish an automatic growth factor for local government aid appropriations based on inflation. Such a policy existed from 1994-2002 with 2002 being the high-water mark for LGA that lasted for 20 years. We examine the overlooked story and circumstances surrounding that 2002 appropriation and discuss its continuing lessons for today’s local government finance debates.
February, 2024 Observations on the State of State Pensions The 2023 pension valuation reports are now available highlighting both the accomplishments and continuing risks that exist in a world where the numbers do not tell the complete story and assumptions dictate how reality gets presented and interpreted. We offer some observations on the state of state pensions gleaned from these reports and the realities of “pension purgatory” – a perpetual state of managed underfunding.
July/August 2023 A Closer Look at Some Recent Migration-Related Concerns State migration is in the news with a couple of reports causing some brows to be furrowed with respect to Minnesota’s demographic and economic future. Some recent research and a deeper dive into the data offers a more complex message with implications for how we should think about this issue and state policy going forward. Minnesota’s GILTI Budget Fix: It May Not Be That Simple A last-minute corporate tax policy switch replaced a worldwide combined reporting proposal with taxation of Global Intangible Low Taxed Income (or GILTI) in order to meet the DFL’s revenue raising targets. But as a recent analysis discusses, the state may have sidestepped one area of policy quicksand only to step into another. An Ode to Sound Tax Administration The events of this past session indicate greater appreciation and recognition of the important role administrative considerations play in good tax policy is needed. Artificial intelligence offers a few thoughts.
May/June 2023 The 2023 legislative session was productive in any sense of the word, but not every issue acted upon this year resulted in a sense of closure. Three notable fiscal policy issues: senior taxation, local sales tax authority, and teacher pensions promise a return to a legislative theatre near you in the years ahead. 2023 Session Wrap: This Ain't Your Father's Miracle It may reflect the same policy vibe and offer the same marketing cache as the most iconic moment in state fiscal history, but the fiscal transformation enacted this year is unprecedented in scale, scope, and risk than anything Minnesota has embarked on before.
March/April 2023 Teachers and their Pensions: Burned Out and Turning Out A major, and largely behind the scenes, legislative campaign this session sought to provide an early retirement option for Minnesota teachers. A look at the history of this issue, relevant findings and lessons from benchmarking TRA against other state teacher plans and Education Minnesota’s own employee plan, and the prospects for the effort as the end of session approaches. State Contract Negotiations: Nothing Transformational Here The biennial budget is taking shape, but a major element -- state labor contract agreements -- won’t be determined until after the constitutional deadline. Initial proposal offers show satisfying economic interests and keeping labor peace will consume the negotiations while discussions of ideas to improve efficiency, performance, and accountability in government human capital management get left behind.
January/February 2023 Three Questions Surrounding a New Biennial Budget As the session kicks into high gear and the DFL’s budget vision takes shape, we look at questions regarding inflation’s impact on budget development, meeting new staffing needs, and how sustainable the tax agenda is paired with big spending increases. How Does Minnesota’s “Brain Waste” Compare? A look at the extent of Minnesota “underemployment” in a time of full employment.
November/December
2022 2023 Session: Land of Opportunity With $17.6 billion available and single party control over the legislative and executive branches, 2023 is shaping up to be a memorable legislative session combining big agendas and some balancing acts. What Does “Full Funding” of Education Mean? "Full funding” of K-12 education has been deemed a top priority in the 2023 session, but what that idea actually means and entails is an open debate. Trends in state education support may inform it. But as two investigations from twenty years ago revealed, understanding both the costs to deliver educational outcomes and the opportunities to pursue system efficiencies are needed to achieve it.
September/October 2022 Questions Surrounding Pension Policy in 2023 Valuation reports are not out yet, but questions regarding some curious reported investment returns, the push to further embrace environmental, social and governance considerations in investment decisions, the fate of items left on the table in 2022, and economic conditions are giving the Pension Commission and lawmakers a lot to think about next year. The Landscape for 2023 Property Tax Policymaking A look at the findings of some recent property tax research reports and what they foretell for 2023.
July/August 2022 What Would Minnesota Without an Individual Income Tax Look Like? A look at commonly shared revenue system features and spending characteristics of states without an individual income tax indicates that a phase-out of the tax would require a complete transformation of the state fiscal system – and the ideals underlying it – that has defined Minnesota government for more than half a century. How Does Minnesota’s Fiscal Effort Compare? Minnesota’s reputation as a high tax state is a function of high rates and collections. Is our reputation still deserved when factoring in states’ underlying ability to raise revenue?
May/June 2022 The Governor's enhanced rebate proposal raised the possibility of a special session focused on expanded tax relief. The numbers are accommodating but high inflation presents an economic and budget forecasting environment just as challenging as was experienced during the heart of the pandemic. How Does Minnesota Employment Compare? A look at the latest Census of Government findings and the type of questions they can prompt.
March/April 2022 Four Questions Regarding the Homestretch With a month to go, we look at some questions surrounding 2022 budgeting, tax relief, and spending priorities. The work of Office of the Legislative Auditor commands the attention and respect of lawmakers across the political spectrum. But that high regard has not translated into a level of financial support reflecting the size, scope, and complexity of state government today. Revisiting “How Much is Enough?” The adequacy of education aid is once again a major issue in the 2022 session. A look back at our 2015 report on education finance labor costs and its relevance for today’s debate.
January/February 2022 In an off-budget year featuring a massive surplus and a generous, accommodating federal government, neither side is holding back. The Renewed Push to Exempt Social Security The state’s huge surplus has propelled full exemption of social security income to the top of many tax relief wish lists. The numbers may look kindlier on the idea but it remains far better politics than tax policy. Should Government Budgets Be Rich in Fiber? With the avalanche of federal cash to boost and enhance broadband connectivity comes a temptation for Minnesota to deviate from a proven track record of what works Snapshot of federal COVID management and economic recovery funds provided to Minnesota and their uses
November/December 2021 The 2022Session: Uncertainty in a Time of Abundance Money doesn’t buy happiness, and with respect to the upcoming legislative session, it doesn’t provide clarity either. Three questions we’re asking heading into 2022. Why Does Minnesota Spend So Much More Than the National Average on Health and Human Services? We take a look behind the numbers reported in our latest edition of “How Does Minnesota Compare?” State Pension Plans: Great Returns Don’t Assure Peace in the Valley A 30.3% investment return in FY 2021 by the State Board of Investment should pave the way for a rather quiet year for Legislative Committee on Pensions and Retirement. But nothing is ever quite that easy in pension land.
September/October 2021 Special Report on Tax Reliability: The State of Minnesota’s “Big Three” An important and often underappreciated tax policy issue is reliability -- a tax system’s ability to support expenditure programs over the long run and provide dependable streams of revenue even as the characteristics and nature of the underlying economy evolves and varies with the business cycle. Diversity in the tax system, like an investment portfolio, supports such an objective. But it also requires a closer look at the structure of specific taxes because “how” these taxes are collected in a state can have significant impacts on their growth trends and variability in collections. We take a closer look at our “big three” by providing some current relevant statistics pertaining to each tax, structural considerations impacting revenue collections, and some relevant policy issues going forward.
July/August 2021 State Union Contracts: What the Negotiations Tell Us Tentative agreements have been reached, but union criticism during the negotiations of “egregious anti-union,” “union-busting” bargaining positions arising out of a DFL administration points to growing stresses in state human capital management and the need for system reform. Minnesota Results for the 50-State Property Tax Comparison Study for Taxes Payable in 2020 Our annual look at how Minnesota compares nationally on effective property tax rates, tax burdens, and property tax competitiveness.
May/June 2021 A look at the tax and fiscal aftermath of the 2021 Special Session and why a “miscellaneous” provision deep in the tax bill may eventually turn out to be the most influential long-term tax policy action arising out of this strange year. Income Taxes, the TCJA, and Taxpayer Migration We take a closer look at the influence of the SALT cap on effective tax rates, what the new IRS Statistics of Income releases are communicating about Minnesota taxpayer migration, and offer some thoughts on the implications for Minnesota’s income tax debates.
March/April 2021 Heading into the homestretch a look at where the House and Senate tax bills overlap and why the American Rescue Plan is an afterthought in building a budget. Racial Inequity and the Tax Code As lawmakers push to address racial inequities in government policy, we look at why tax policy presents a unique challenge and how Minnesota compares in one area that’s received national attention. Minnesota’s Proposed Taxation of Foreign Earnings: What We Know Five things learned about state efforts to go after foreign profits.
January/February 2021 A Closer Look at Minnesota’s Proposed SALT Cap Workaround Guest contributor, MCFE member, and former Minnesota House of Representatives legislative analyst Joel Michael examines the design, implications, and tax policy issues of a bill allowing pass through business entities to elect to pay state income tax at the entity level and thereby circumvent the federal government’s $10,000 cap on state and local tax deductibility. A look at the findings of a couple of recent lower-profile state government reports on tax and fiscal matters of relevance to taxpayers.
November/December 2020 The $100Million Health and Human Service Savings Challenge With nearly every new dollar of general fund tax revenue in the next biennium currently projected to be consumed by current law health and human service (HHS) spending, what should we expect from the cost-saving efforts of the Governor’s Blue Ribbon Commission on Health and Human Services? Federal COVID responses and the usual raft of end of year federal temporary tax provisions have again created a backlog of state tax conformity matters and the prospect of a yet more complicated and expensive tax system. There is an action we should consider to mitigate this recurring problem.
September/October 2020 Resistance to the continuation of the governor’s emergency powers was a formidable obstacle, but rejecting over $2 billion in economic benefits spread across the state entailed its own political risk. What is COVID’s impact on state and local finances and family financial security? A National Tax Association publication offers some analysis as well as perspective on what it may mean for any new round of federal support. Minnesota’s “Must Do” Sits on a Department of Revenue Bookshelf Now is absolutely the time for a long-ignored 2011 report from the Department of Revenue to get some renewed attention.
July/August 2020 Following the 2020 regular session and three special sessions, the state remains in a holding pattern with respect to a tax bill, a bonding bill, and budget repair. With November elections looming and the clock ticking on the 91st Minnesota Legislature, legislative action – or lack thereof – in the next special session will have a lot to say about the state’s fiscal and political future. Banking on “A Superior Form of Capitalism” For over two decades Minnesota public pensions plans’ investments in private equity have delivered the outsized investment returns needed to meet Minnesota’s defined benefit plans’ high return expectations. In today’s persistent low interest rate environment, the demand for private equity is greater than ever. But all is not well in Camelot.
May/June 2020 In a chaotic period dominated by COVID response and civil unrest, action on the budget deficit drifted down lawmakers’ to-do list. A look at the status, environment, and options for budget repair in the next special session. The Time is Now for Nowcasting A new economic tracking tool using real time data from the private sector offers insights into what is happening now in the economy, what impact policies are and are not having, and how Minnesota’s economic experience to date differs from the nation as a whole. Minnesota Results for the 50-State Property Tax Comparison Study for Taxes Payable in 2019 Minnesota creeps up in national rankings; regional comparisons highlight tradeoff between residential and commercial property in Minnesota’s property tax system.
March/April 2020 State Employee Contracts and Budget Uncertainty At the same time COVID is bringing the state economy to its knees, state employee contracts are up for ratification requiring an uncomfortable vote. The numbers are getting all the attention, but from a policy standpoint it’s the distribution of those increases that deserves more consideration. The state has plenty of immediate fiscal problems to deal with in responding to COVID. But like the virus itself, a “second wave” of impact looms in the state’s future.
January/February 2020 A look at a couple of the major tax and fiscal policy issues that will be occupying lawmakers attention this year. Fire up the Seniors: The Push to Exempt Social Security Deeply problematic in principle but politically opportunistic, the justifications for exempting all Social Security income from state taxation fail policy, economic and demographic realities. Time to Reassess the State Property Tax There is nothing quite like the State General Tax anywhere else in the country. There's a reason for that.
November/December 2019 State Government’s Human Capital Problem Until Minnesota government takes other workforce issues as seriously as its fixation with internal equity, trying to get and retain necessary talent in government is doomed to be an increasingly expensive exercise in frustration while recent high-profile agency embarrassments become more common. Greatest Research Hits of 2019 Tax incentives, tax-induced behaviors, issues surrounding income inequality -- our annual review of this year's National Bureau of Economic Research working papers offers information and insights on issues and policies being debated at the state capitol. New Human Services Commissioner Jodi Harpstead's “90 Day Review and Plan” for the troubled agency was a thoughtful and encouraging plan of action from an experienced manager and leader. Now come the implementation realities and challenges presented by the state’s human capital system in delivering on it.
September/October 2019 93rd Annual Meeting Highlights -- The Keys to Minnesota's Competitive Future The Siting Expert: Location Selection Drivers and Trends One of the nation’s leading site selection authorities offers his perspective on how business decision-making with respect to locating and expanding operations has changed and continues to change. The Numbers: Benchmarking Minnesota’s Competitiveness We revisit our 2013 report on Minnesota competitiveness to see where we stand and what has and hasn’t changed. The Discussion: State Competitiveness Panel A distinguished group of panelists representing different disciplines and perspectives examine Minnesota’s supply and demand for talent, the sustainability of our higher tax/higher service approach to competitiveness, and whether placing our chips on the “tech economy” makes sense. The Chancellor: Higher Education’s Role, Challenges and Opportunities Chancellor Devinder Malhotra of Minnesota State Colleges and Universities highlighted the critical role, challenges, and opportunities state colleges and universities play in supplying the necessary talent to Minnesota, both now and in the future.
July/August 2019 State Budget Process Reform: New Rules Can’t Help What Also Troubles Minnesota “Wagner’s Law” combined with a broken competitive structure in politics underlies and complicates the major challenge of successful state budget process reform. As long-time MCFE research director Aaron Twait leaves to embark on his new career, he was asked if there is was one parting recommendation he wanted to leave to the world of state government. The answer: some frank advice regarding the Minnesota Price of Government. “The Keys to Minnesota’s Competitive Future” MCFE Annual Meeting and Policy Forum Join us the morning of October 9th at the St. Paul River Centre for a look at Minnesota's competitiveness -- where we stand, how the concept itself is evolving, and most importantly what we need to be doing going forward. Goodbye, Farewell, and Amen Aaron gets the last word in this issue. Thank you Aaron for your great work!
May/June 2019 Session Reflections: About As Good As Could Be Expected Reactions and analysis on some of the higher profile tax and fiscal issues making up the 2019 legislative session. Minnesota Takeaways From the Payable 2018 50 State Property Tax Comparison Study Forthcoming results from the Payable 2018 report will show 2017 state general tax changes had an impact while homeowners remain solidly average. Yes, Minnesota, Our Commercial Property Taxes Are High Relative to Most Other States Rehashed, rewarmed criticism of our 50 State Study still doesn’t change the fact Minnesota’s business property tax rankings are deserved.
March/April 2019 We’ve experienced this session’s tax conformity debate before. The ending may be different this time but will likely forego an important opportunity. The Other State Fiscal Consequence of Federal Corporate Tax Reform The TCJA has been a very fortuitous and beneficial development for Minnesota’s struggling public pension plans but might also play a supporting role in a real state pension fix.
January/February 2019 Minnesota Tax and Spending Rankings and the Policy Questions They Provoke Findings from our comparative tax and spending studies generate a number of questions relevant to the 2019 session. The Case For A Bigger Standard Deduction Love or hate the TCJA, its principal simplification effort presents an opportunity for Minnesota that shouldn’t be wasted.
November/December 2018 Showtime! 2019 Session Preview The cast of characters has undergone a change but the storylines will look very familiar. Greatest Tax Research Hits of 2018 Behaviors prompted by federal reform, the unintended consequences of eliminating tax havens, and new insights into tax compliance are some of the topics covered in our review of tax research in 2018. Questions Beleaguered Property Taxpayers Should Be Asking ‘Tis the season for trying to figure out just why property tax bills are going up
September/October 2018 The Wayfair Decision – “Do They Have Just What They Need?” Our distinguished panel of national experts examined the Supreme Court’s Wayfair ruling, its implications, and what it means for large business, small business, marketplace providers, and state and local governments. Minnesota’s Unfinished Business Our annual meeting panel of Minnesota capitol veterans took a closer look at the tax issues and debates likely to generate headlines in the 2019 session. Reframing the Tax and Budget Debate Annual meeting luncheon speaker and author of Dead Men Ruling, Dr. Eugene Steuerle, argues that presenting an opportunity cost perspective on government budgets is not just a way to make budget debates more productive, it’s also essential to allow citizens to regain control over their fiscal destiny. Five Questions: The Candidates on Taxes We posed five questions to the gubernatorial candidates on some tax matters outside of the usual “how much” debate that tends to dominate the discussion. With thanks to each candidate for providing their thoughts and perspectives, here are their unedited responses.
July/August 2018 A New World for State and Local Sales Taxation As if the 2019 tax committees didn’t have enough on their plate already, the recent transformation of the landscape for taxing e-commerce gives policy makers a few other things to think about. A closer look at whether the state’s prevailing wage law actually delivers on its stated legislative purpose. It’s a Mad, Mad, Mad, Mad Tax World Join us on October 10th at the St. Paul River Centre as distinguished experts and political veterans help us unravel the policy, political and administrative implications from one of the most eventful years in Minnesota tax policy history.
May/June 2018 Reaping the Whirlwind of a Misguided Tax Debate A shanghaied conformity debate, a veto based on the presumptive ability to lay claim to income earned around the globe, and the lost art of compromise combine to create a tax filing season in 2019 ranging from annoying to exasperating. The celebration over this session’s primary political achievement shouldn’t distract from the fact it’s not a solution to our biggest fiscal challenge. From The Director: Experiencing "Tax Rules forRealists" There’s textbook principles of good tax policy, and then there’s the rules that dictate how tax policy really works.
March/April 2018 All eyes are on the tax committees and the Governor as the headline issue of the 2018 session heads to its climax. The State of the Minnesota Property Tax New data and reports offer perspective on Minnesota property tax trends and competitiveness. From The Director: Constitutional Dedication vs. Competition A transportation finance hearing offers a lesson on how government is supposed to work.
January/February 2018 The future of Minnesota’s individual income tax will be front and center in the 2018 legislative session. A look at a few of the issues lawmakers will be grappling with. How Sweeping Federal Tax Reform May Create Benefits (and Headaches) for Minnesota Businesses Guest contributors Christopher Martin, Senior Manager and Sarah Durst, Senior Associate of Grant Thornton’s Minneapolis SALT practice examine the extraordinarily complicated issues surrounding Minnesota’s response to federal corporate income tax reform and offer “dos and donts” for lawmakers to consider. “Once More Unto the Breach, Dear Friends” The political battle to get a signed pension bill is now in its third year and has taken on the feel of a Shakespearean play.
November/December 2017 What Federal Tax Reform Means for Minnesota A look at the Minnesota impacts of the House and Senate tax reform bills and some looming policy questions for state lawmakers in 2018. Greatest Research Hits of 2017 From tax reform to minimum wage laws to the optimal taxation of pot, our look back on the year that was in tax and fiscal policy research. Plus, our inaugural “Fiscal Raspberry Award” recognizing jaw-dropping awfulness in the study of fiscal policy. Is it possible to be an advocate for good tax policy without considering the issue of fiscal responsibility?
September/October 2017 As our 2017 tax panel discussed, the ongoing federal tax reform debate features convoluted story lines, awkward situations, and outrageous characters... and may well end up being a show about nothing. Welcome to Fend for Yourself Federalism Our 2017 fiscal policy panel examined a future in which more responsibilities devolve to states backed up by the type of uncertainty and unpredictability only the federal government can offer. The Economic and Fiscal Consequences of Immigration Annual meeting luncheon speaker Kim Rueben, Senior Fellow and Director of State and Local Finance Initiatives at the Urban Brookings Tax Policy Center, exposed the realities and myths surrounding this politically charged topic.
July/August 2017 What Does Washington, DC Have in Store for Minnesota? Find our by attending our 2017 Policy Forum. Minnesota's Fiscally Healthiest City Is.... It's not a beauty pageant. Ratio analysis offers a way to extract more understanding out of government transparency efforts. The Other Issue Surrounding a $15 Minimum Wage The interactive effects of increased wages and reduced eligibility for income support programs is chock full of under-recognized consequences.
May/June 2017 Sifting Through the Results of Another Legislative Session Spectacle Our summary and analysis of the tax and spending outcomes from a legislative session that will be remembered for some time to come. Minnesota Takeaways From Our Latest 50 State Property Tax Comparison Study Results from the newly-released Payable 2016 report and a look to the future Another Lost Year in Pensionland Tax cuts aren’t the biggest threat to the state’s long term fiscal well-being
March/April 2017 Omnibus tax bills have come together, and a lot of big dogs are chasing what is likely to be a compact car of tax relief Is a tax break specifically for seniors good policy? A look at the issues and evidence. Price of Government Declining...Thanks to More Government Spending The rapid growth and greater influence of government transfer payments is causing Minnesota’s Price of Government to decline making government look cheaper the larger the role it plays in the state economy.
January/February 2017 Budgeting in a Sea of Federal Uncertainty Federal tax and spending reform proposals present a challenging and volatile environment for state budget development. “Levyphobia” and the Minnesota Homeowner The latest edition of the routinely overlooked but indispensable Department of Revenue “Voss Report” shows that the average homeowners’ property tax effort over the last decade is feebler than whatever the state is (or is not) doing. How Would a Pay Raise Affect Lawmaker Performance andLegislature Diversity? If academic research findings apply here, any decision to give our lawmakers a raise is best based on recognition of their hard work in the service of Minnesota citizens rather than on an expectation that our legislature would look or perform differently. Government Budgets, Scarcity and Our Lizard Brains A neuroscientist explains fiscal irresponsibility
November/December 2016 A look at the economic and political landscape shaping the forthcoming budget session Practitioners Corner: Taxpayers Dancing in the Dark Guest contributors Chris Martin and Emily Miller of Grant Thornton argue that Minnesota should join the majority of other states in implementing a private letter ruling program to improve transparency and guidance in the application of Minnesota tax law. Greatest (Research) Hits of 2016 Some new insights from the National Bureau of Economic Research on the relationship between taxes and business investment, work incentives, and inequality.
September/October 2016 Evaluating the State of State Tax Administration Our 2016 tax panel examined the current condition of state tax administration, discussed process and procedural concerns of today’s practitioners, and offered ideas to advance a strong ethic and system of voluntary compliance in Minnesota. Health Care Finance, Cost Control, and the State Budget: Are We Making Progress? Our 2016 fiscal policy panel delved into the complicated world of public health care spending and what it takes to achieve fiscal sustainability in this large and high profile part of the state government budget. Annual meeting luncheon speaker, Michael Guyette, President and CEO, Blue Cross and Blue Shield of Minnesota exposed the harsh economic realities of the current individual insurance market and presented a call to action to restore the health of this integral part of the health care system. Lessons From Fully Funded Defined Benefit Pension Plans What are the keys to having healthy traditional defined benefit plans in this day and age? As another round of public pension fixes looms in 2017, the answer to that question can come from an unexpected place: the retirement plans Minnesota public sector unions offer their own employees. From the Director New MCFE Director Emeritus recipient Jerry Geis knows. So should you.
July/August 2016 The Reasons Behind Minnesota’s National Property Tax Rankings Our enhanced 50-State Property Tax Comparison Study now offers new perspective on and understanding about what drives Minnesota’s effective property tax rates and rankings Pension Politics in 2017 Just Got A Lot More Interesting Another year of poor investment returns relative to expectations + defined contribution plans' greatest disadvantage infecting defined benefit plans = complicated and controversial pension politics in 2017. Save the Date: MCFE 90th Annual Meeting and Policy Forum, October 5 We look at the state of state tax administration, health care and the state budget, and more
May/June 2016 Session Breaks Bad, Better Call Saul Our recap of a messy, confusing, and frustrating 2016 legislative session requires words of wisdom from a great negotiator and problem solver. Underfunded Pensions and Underfunded Infrastructure: A Match Made in Heaven? Direct public pension fund investment in public infrastructure is gaining traction but requires a fundamental rethinking of how we conceptualize and manage public assets. From the Director: Two Transparency Initiatives We Really Need Greater process transparency may be welcome but the key to good government is greater transparency with respect to policy substance. Two efforts in this regard are long overdue.
March/April 2016 2016 Session "Everything Just Got a Little Harder" A shrinking surplus, tax and transportation gridlock, and a new – if slightly disingenuous – reason for increasing public pension contributions provides some of the context for the highly-compressed 2016 legislative session. Funding a Bridge Over Troubled Waters The alleged growing impotence of the gas tax is exaggerated, and
alternative user fees may help at some point in the future. But the real A Perspective on the "Local Price of All Government" in Minnesota A look at government’s “all in” fiscal footprint – local, state, and federal – at the county level. From the Director: The State Tax Research Institute Arrives with a Splash
January/February 2016 Is the Minnesota Miracle Dead? Contrary to popular belief, the transformation of the state/local relationship and policy outcomes originating out of the Minnesota Miracle remain intact today. But to satisfy the continuing calls and insatiable expectations for lower property taxes, a new and different miracle is necessary. Federal Conformity: The "Other" Business Tax Relief Two new studies suggest full conformity with federal treatment of new capital investments merits consideration in the forthcoming 2016 business tax relief debates. From the Director: Minnesota's "Bizarro World" ofProperty Taxation Minnesota property tax policy debates are upside down with respect to property tax principles. Tax research provides the reason. MCFE News and Notes
November/December 2015 A Call For Expansion and Enforcement Of Minnesota's Current "Taxpayer Bill of Rights" Guest
contributor Jerry Geis examines the state's 25-year history with ensuring
adequate procedural protections for taxpayers, examines why changing times have
created new needs, and offers a series of proposals to begin the discussion. Reasonable, Supportable, and Irresponsible Recent Pension Commission hearings on plan assumptions
demonstrate again that keeping contributions in check takes priority over
fiscal responsibility. From the Director: Tax
Reformation Day Twenty-seven theses have been nailed to the doors of Minnesota's
legislative chambers. Let's start the conversation.
September/October 2015 Highlights from the MCFE 89th Annual Meeting and Policy Forum Wrestling with the notion of business tax fairness, recommendations for the state surplus, and a “Minnesota report card” from one of the state’s most successful business leaders. State of the State: Minnesota Tax and Spending Rankings Our latest reporting of tax and spending data from the U.S. Census finds Minnesota back in some familiar territory. Hug a Corporate Tax Professional Today Given
what's going on, they could probably use one.
July/August 2015 It's All About that Base, 'Bout that Base (and No Trouble) Is Minnesota As Fiscally Healthy As We Seem To Be? Doing the Work of Angels MCFE News and Notes: Annual Meeting and More
May/June 2015 No omnibus tax bill this session is a source of consternation and frustration for many. But there is a silver lining. When You Wish Upon a Star, Taxes Matter A new research study concludes state taxes affect the location decisions of high-end scientific talent. It also shows Minnesota has a lot at stake – and potentially a lot to lose. A Math Problem Called Education Finance The balking and resistance to universal pre-K is symptomatic of a larger issue: the failure of state education aid to keep up with the rising costs of school district collective bargaining agreements. Minnesota Findings from the 2014 50-State Property Tax ComparisonStudy A new MCFE Issue Brief summarizes and highlights key Minnesota-related findings from our national property tax benchmarking study
March/April 2015 Taking Inventory of the 2015 Tax Bills A look at some of the potential fodder comprising forthcoming omnibus tax bills The Devil’s Dictionary Guide to the End of Session Some alternative definitions of words you will hear frequently over the next six weeks This Year in Pensions: Five Things We Learned Rip roaring investment markets and new pension accounting standards changed a few things on the surface. Underneath, sustainability pursuits continue to be built on a foundation of sand. What Public Pensions and Geology Have in Common When science fails to explain evidence, the science needs to adapt
Roads Out of Perdition A look at Minnesota highway finance past and present – and the policy considerations surrounding different revenue options being proposed. Why is Minnesota Highway Construction Inflation So Much Higher than the Nation’s? The strikingly large difference between state and national measures of highway cost inflation suggests that the source of, reasons for, and measurement of cost inflation must be part of the larger transportation finance debate. Minnesota Residency: The “Domicile Swamp” Guest columnist Gina Ceola, Director, PWC Minneapolis, provides a practitioner’s perspective on the complexity of Minnesota’s residency testing and why Minnesota’s residency laws need greater clarity and simplification.
Divided Again: 2015 Session Preview The forecast is here, the cast is set, and the curtain is about to rise on the 2015 session. The Debate On Acknowledging Reality We offer several questions that deserve careful consideration before any formal reinstatement of expenditure inflation in the economic forecast. From the Director: Ditchwater Dull? Technical government finance issues have a major influence on how the public perceives government.
What Makes a Tax System Competitive? Highlights from the presentations and discussions at our 88th Annual Meeting of Members Indicator or Dashboard: Redesigning the Minnesota "Price of Government" Minnesota’s “Price of Government” report needs an upgrade. A look at why and how. From the Director: The Politics of Tax Education Politics might make tax reform tough but it often doesn't do public education on tax issues any favors either.
So, What Are “Inversions”? Guest columnist, MCFE board member, and international tax expert Ken Levinson of Faegre Baker Daniels provides a closer look at the realities, issues, and misperceptions surrounding this exceptionally complicated topic. A Look at Minnesota’s Real Personal Income Trends Newly available data from the U.S. Bureau of Economic Analysis offers a different perspective on state personal income – personal income adjusted for purchasing power. A look at Minnesota’s current status, recent trends, and why it matters. MCFE Annual Meeting to Examine Minnesota Tax Competitiveness Richard Davis, Chairman, President, and CEO of US Bancorp headlines an all star event examining Minnesota competitiveness in the 21st century From the Director: Fixing the Corporate Income Tax Good luck with that.
The "Mad Men" Guide to the 2014 Session Wisdom and insights from television’s most famous advertising executives have a lot of relevance to recent lawmaker decisions regarding the state budget, property taxes, and other policy areas. How Does Minnesota's Safety Net Compare? A new analysis out of the Federal Reserve Bank of Chicago finds that Minnesota’s reputation as a state that looks after its most economically disadvantaged is well deserved. Bad Ideas Ruling A new book titled Dead Men Ruling argues that fiscal democracy in the U.S, – the ability of current and future generations to choose their own spending priorities and allocate resources accordingly – has been ruined because federal budgets are driven by decisions made by people no longer with us. Minnesota addressed this problem long ago but is still beholden to some bad ideas.
That Rainy Day Feeling Is this the year we establish stronger budget reserve targets
and deposit policies in statute? Minnesota’s current tax policy suggests this
is a necessity, not an option. Wage trends suggest the economic story of rural Minnesota is a lot more upbeat than the stark headlines and warnings suggest Thoughts at the Far Turn As the end of the session draws closer, some perspective on the state’s property tax obsession, unsession activities, pension policy -- and the hands-down, all-time greatest research study on how people respond to estate taxation.
Tea
Leaves and House Bills - Our Look at the 2014 Legislative Session 2013 Voss Report Release: Silence Speaks Volumes Breaking Down the Meltdown Practitioners Corner: Federal Non-Conformity -- The Bane
of Taxpayers and Tax Professionals Alike To Infinity and Beyond
The Stool
Revisited The Big Divorce Pitfalls of Evidence Based Policy
To
Subsidize or Not to Subsidize MCFE 2013 "Accountability Index" Do High Quality Teachers Make A Difference? Our Non-Identical Twin
The Tax
Lessons in the 2013 Tax Bill The Case of the Mysterious Municipal Downgrades MCFE Annual Meeting to Examine Business Tax Incentives
Going Big
and Going Home Third Time is Not a Charm The Progressives' Tax Policy Paradox
Taxation
and the Session Homestretch Price Tag of Minnesota Tax Fairness MCFE News and Notes Has Minnesota Nice Become Minnesota Smug?
A Closer
Look at “Plan A” Public Pension Purgatory The Perils of Populist Tax Reform
“REWARMED OR REFORMED? MINNESOTA RELAUNCHES PERFORMANCE BASED BUDGETING” “REPORT FROM THE NATIONAL TAX ASSOCIATION ANNUAL MEETING”
“REFORM AND REFRESH –ANNUAL MEETING HIGHLIGHTS” “MIDDLE INCOME TAX COMPETITIVENESS – HOW DO MINNESOTA’S PAYCHECKS COMPARE?”
“STATE LABOR AGREEMENTS – BEYOND THE NUMBERS” “MTA 2012 ACCOUNTABILITY INDEX IS DOWN ON THE FARM”
“TURNING PROPERTY TAX FRUSTRATION INTO A PRODUCTIVE ACTIVITY” “LOCAL GOVERNMENT CONSOLIDATION: A ROAD OF OPPORTUNITY FILLED WITH POTHOLES” “GETTING A GOOD DEAL”
“LESSONS FROM 60 YEARS OF STATE TAX COMMISSIONS” “DOW 100,000, SUNSHINE WISHES, AND KICKING THE CAN: THE MAKINGS OF A NEW MINNESOTA MIRACLE” BREAKS, CUTS, OR REFORM: THE JOBS AND TAXES DEBATE” “HOW DOES MINNESOTA COMPARE – GOVERNMENT TRANSPARENCY EDITION” “RETURNING TO OUR TRANSPARENCY ROOTS”
“BUDGETING THROUGH THE CONSTITUTION: POPULAR APPEAL; PRACTICAL PROBLEMS” “THE 8.5% DILEMMA”
“THE GORILLA IN THE GOVERNMENT REDESIGN ROOM” “WADING INTO THE WATERS OF TAX EXPENDITURE REFORM” “MARKET VALUE MAYHEM”
“THE MORE THINGS CHANGE…. SPECIAL SESSION RECAP” “A CRITIQUE OF THE STATE RETIREMENT PLAN DESIGN STUDY” “SESSION LIMBO – SOME THINGS WE DO KNOW”
“WHEN POLITICAL PRINCIPLE COLLIDES WITH TAX PRINCIPLE” “THE ROLE OF BUSINESS TAXATION IN TAX FAIRNESS WARS” “A CALL FOR A COMMISSION ON 21ST CENTURY CIVIL SERVICE REFORM”
"THE PRICE OF FAIRNESS – A LOOK AT THE GOVERNOR’S PROPOSED BUDGET” “A BLUEPRINT FOR PROPERTY TAX AIDS AND CREDITS REFORM” “TAKE THE COMPARABLE WORTH CHALLENGE”
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