MINNEAPOLIS
- Government spending and revenue in Minnesota grew more
slowly in the 1990s than is widely portrayed, according to a study
that's gaining attention as fiscal issues dominate political races
around the state.
For more than a year, Gov. Jesse Ventura, other politicians and
interest groups have seized on the doubling of the state's general
budget since 1990 to argue for spending cuts, tax cuts and other changes
in fiscal policy.
But while the $14 billion annual state budget is twice as large as it
was in 1990, most discussions of that change leave out the impact of
population and inflation growth and the shifting responsibilities of
state and local governments. Local government finances have been
enmeshed with the state's since the "Minnesota Miracle"
reforms of the early 1970s.
A study released last week, called Trends in Minnesota Government
Spending, puts it all together -- taxes, fees and spending by all levels
of local and state government since 1987.
It found that while spending by Minnesota governments remains greater
than the average of other states, the difference narrowed from 1987 to
1997, the last year for which comparison data is available. During that
time, spending by Minnesota governments grew 1.8 percent a year,
adjusted for the state's rapid population growth and inflation, below
the national average of 2.4 percent.
The study also found revenue to state and all local governments in
Minnesota, also adjusted for population and inflation growth, grew1.5
percent a year from 1990 to 2002.
The study was written by Jeff Van Wychen of the Property Tax Study
Project, a Minneapolis group supported by three cities, three counties
and two school districts, and Nan Madden of the Minnesota Budget
Project, an initiative of the Minnesota Council of Nonprofits, based in
St. Paul.
The two undertook the study in part because the repeated portrayals
that state government had doubled in size didn't fit with the experience
of people who work in or use services from the state, counties, cities
and schools. "People would say 'Our program hasn't doubled in 10
years,' " Madden said.
"Our spending is higher than other states, but there's not any
evidence that suggests we are growing particularly fast," she said.
"And in comparison to the national average, we're starting to look
more like other states."