The Minnesota Legislative session is less than a month away. With the DFL in control of the House, Senate, and Governor’s office for the first time since 1990 we can expect that, at the very least, everything will operate differently than it has in a long time. This is a good time to look around and back to a complete understanding of the state of the state budget. The most contentious parts have always been taxes, so we should start with them.
As noted before, there is a structural deficit of $1B per year that is hidden by some awful gimmicks. Fixing that gap will likely be easy, but it begs for more fundamental reform that Governor Dayton is eager to implement. Before we get too far into it, two obvious questions stand out – where does Minnesota government income stand in relation to other states as well as where we have been historically?