On Our Way to Average 1
Executive Summary___________________
Since 2002, Minnesota’s state and local government revenues and expenditures have declined signicantly in
comparison to other states. The corresponding decline in public investment has coincided with a decline in
Minnesota’s economic performance and quality of life. Once a naonal leader in areas such as educaon andemployment, Minnesota is now lagging.
Minnesota leads the naon in terms of the decline in non-federal general revenue from 2002 to 2007
,both on a real per capita basis and per $1,000 of personal income. In fact, on all categories of revenue andexpenditures on both a per capita basis and per $1,000 of personal income, Minnesota ranks among the topten states in terms of the decline (or least growth) from 2002 to 2007.
This is true for no other state.
This report updates a 50 state analysis of revenue, expenditure, and performance trends published in June
2008.
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It looks at where Minnesota ranks naonally on 13 key wellness indicators ranging from job andincome growth to road condions. The report nds that to date, the economic experiment undertaken by the
advocates of “less government” and “no new taxes” has been a failure.
The baseline year for this study is 2002. In that year, Minnesota implemented a series of changes in the state-local scal relaonship, including a restructuring of the property tax system and a complete state takeover of general educaon funding; 2002 was also the last year prior to the implementaon of a “no new tax” agenda
in Minnesota.
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