Gov. Mark Dayton’s budget legacy secure: Surpluses and more spending
Dayton, a second-term DFL governor not running for re-election, largely sealed his ambitious budget legacy in May when he signed his final two-year budget that funds schools, health and human services, parks and other state programs.
"We've restored fiscal integrity and stability to the
After inheriting deficits and a nearly depleted rainy-day fund, Dayton is now in charge of a state that's running surpluses and carrying
But his Republican opponents in the Legislature say Dayton's record is one of spending profligacy -- paid with a big 2013 tax increase -- that is ultimately unsustainable and adds little to the lives of average Minnesotans.
"A lot of Minnesotans haven't seen increases in their paychecks and aren't seeing the value of a 50 percent increase in government spending, and for them it's frustrating," said Rep.
Absent
The debate about Dayton's budget legacy and the proper role of government will help frame the 2018 election to determine his successor. Because state senators won't stand for election in 2018 and the
That would allow
Pawlenty vs. Dayton
The year Pawlenty took office, the state budget was
Dayton's budget director,
Pawlenty, for instance, borrowed about
Pawlenty's administration also received
After incorporating those factors, the record looks different: Spending up by 3.1 percent per year during the Pawlenty years, and 3.4 percent in the Dayton years.
Moreover, after population increases and inflation are factored in, per capita state spending is slightly less now than it was in 2003, according to data from the
Even given the smaller spending increase, Dayton and his defenders say they have invested in the state's future, citing spending initiatives in education, health and human services, infrastructure and other programs they say will lead to a healthy and educated population.
That, in turn, they argue, will anchor the large and small companies that have helped
Dayton proudly touts his 2013 tax increase, which fell mostly on the wealthy and cigarette smokers, for stabilizing the state's finances and shifting the tax burden from the middle class to the affluent. It was accompanied by some property tax reductions.
Overall, the cost of funding state and local government as a percentage of Minnesotans' personal income is declining. This year, it's expected to be lower than in any year during the Pawlenty administration.
Schools and health care
Although the administration downplays his overall spending record, Dayton is more than happy to take credit for a 38 percent increase in education funding compared to 22 percent during the Pawlenty years, once the accounting shifts are factored in.
The administration instituted all-day kindergarten and expanded prekindergarten, and both are already showing results, Frans said.
"If you want to create more jobs for more people, you have to create better education and training opportunities," he said.
Other than resistance to universal prekindergarten and some policy fights with the teachers' union,
"We have to have a very real conversation about school spending. Just spending more money on schools is not going to improve educational outcomes," said
Despite the spending,
Because education consumes 42 percent of the state budget,
And without spending constraints, he argues, taxes will drive out wealthy Minnesotans and businesses. "We can only tax so much, especially in
A 68 percent expansion of Medical Assistance enrollment has given 451,000 Minnesotans access to basic health care. The number of Minnesotans without health insurance has shrunk to about 6 percent, according to
Nursing home workers and home health care aides have received pay increases to stem staffing shortages.
But
Dayton and
Fiscal fight continues
Although Dayton has signed his final budget, the fiscal fight with Republican lawmakers is not finished.
A tax on health care providers will sunset at the end of 2019, creating a potential budget hole unless Dayton gets skeptical
The governor signed a bill granting
In a signal of his commitment to the fiscal path that he set the state on, Dayton cut the Legislature's operating budget in an attempt to force them back to the negotiating table.
"The shifts and borrowing and gimmicks -- we've undone all those and restored fiscal integrity and we have a balanced budget," he said. "It's distressing to me they would so cavalierly start to unravel that."
___
(c)2017 the Star Tribune (Minneapolis)
Visit the Star Tribune (Minneapolis) at www.startribune.com
Distributed by Tribune Content Agency, LLC.
EDITORIAL: Minnesota’s shaky state budget needs strengthening
Rep. Pallone to Trump: No Reasonable Excuse for NOAA Administrator Position Remaining Vacant
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News