State Budget
Apr 13, 2012
We brought Andrew Biggs, an economist with AEI, to Minnesota last fall to testify at the pension commission on assumed rates of return, the sustainability of public pensions and the problems with traditional ways of measuring pension liabilities. Mr. Biggs had a column in the Wall Street Journal yesterday that brought some welcome news. He is telling reformers like us (the Free Market Institute at the Center has been working on reform) that help is on the way. He thinks some big dogs have entered the fight, including the Federal Reserve, the Bureau of Economic Analysis, and the Congressional Budget Office. They have joined academics like Biggs who have been talking to anyone who will listen that we have a much bigger public pension problem than most states want to admit—and that we have not been measuring liabilities (which are guaranteed by the taxpayer) accurately. As a result, we keep making outsized promises that we cannot keep—and these promises, when properly measured, are grossly unfair because they are well in excess of private market rates.
Apr 2, 2012
In 2012, Americans will work 8 hours a day, five days a week, from the beginning of the year until April 17 to pay for the spending incurred in their name by federal, state, and local governments. That’s one of the findings of the Tax Foundation’s latest calculation of “Tax Freedom Day.”
Apr 2, 2012
"Citizen involvement is not just back in vogue, it’s the cornerstone of our future.”
Mar 1, 2012
Minnesota Management and Budget has forecast a tiny surplus in the state budget for the current biennium. Great. But as Commissioner Jim Schowalter observes, “we still have lots of IOU’s” to pay back–including the “school shift” of $2.7 billion.
Jul 22, 2011
My last post itemized 46 different policy provisions aimed at redesigning government that were passed by the legislature and vetoed by the governor at the end of the 2011 regular legislative session. As I wrote, "These redesign efforts are key to addressing the projected long-term imbalance in revenue and spending without having to rely exclusively on raising taxes and/or cutting services."
Jul 15, 2011
Legislative leaders and Gov. Mark Dayton finally reached a deal on the state budget yesterday, relying one-time revenue sources. This revenue only aggravate the state's long-term budget problem. Fortunately, lawmakers are not entirely putting off necessary long-term fixes.
Jul 5, 2011
MPR's Public Insight Network asks whether you want elected leaders who, during tough negotiations, value compromise or principle more. Here's how I answered.
Jun 27, 2011
Reporter Baird Helgeson had a very good piece in the Star Tribune late last week about how Minnesota Speaker of the House Kurt Zellers is the “Man in the Middle” these hard days.
Jun 24, 2011
Both the state and federal governments are dealing with very serious budget issues. American Experiment has been busy writing about these matters over the past couple of months. In case you missed anything, here's a running list of our latest commentaries, blogs, and essays on the state and federal government's ongoing budget problems.
Jun 24, 2011
Last week, the Star Tribune editorial department set out to clarify the numbers behind the competing state budget plans offered by the Legislature and Governor Dayton. According to them, “several spin machines” have been throwing out confusing budget numbers. Specifically, they took issue with Ecolab CEO Doug Baker’s claim that the Legislature’s budget increases spending by 6 percent over the last biennium.
