Of the 20 states with the worst budget shortfalls, Minnesota appears to be one of only three that won’t raise revenues.
Evidence from national organizations suggests that Minnesota will be part of a very small minority of budget-stressed states that do not raise state tax revenues to address severe revenue shortfalls caused by the Great Recession.
Here are two studies illustrating the point. These two surveys, one by the Center on Budget and Policy Priorities and the other by the National Conference of State Legislatures, show that of the 20 states with the most severe budget shortfalls, Minnesota, Louisiana and Georgia are the only three that have not already raised revenues or are still considering it.
Here is a map by CBPP showing the 36 states that either have enacted or are still considering revenue increases:
And below is a list showing the states with the worst budget crises, expressed as a percentage of general fund budget. Minnesota ranked 10th worst at the beginning of the year, before the deficit grew in the revised forecast.
FY2010 Budget Deficit As a Percentage of State General Fund Budget
|
Rank |
State |
Percent |
|
1 |
Nevada |
37.6 |
|
2 |
Arizona |
28.2 |
|
3 |
California |
22.3 |
|
4 |
Louisiana |
19.8 |
|
5 |
Washington |
18.5 |
|
6 |
Hawaii |
18.0 |
|
7 |
Wisconsin |
17.2 |
|
8 |
Kansas |
17.0 |
|
9 |
Vermont |
16.5 |
|
10 |
Minnesota |
14.7 |
|
11 |
Connecticut |
13.6 |
|
12 |
Rhode Island |
13.1 |
|
13 |
Delaware |
12.9 |
|
14 |
Michigan |
12.3 |
|
15 |
Maine |
12.2 |
|
16 |
Maryland |
11.7 |
|
17 |
Iowa |
11.5 |
|
18 |
Virginia |
11.2 |
|
18 |
Florida |
11.2 |
|
20 |
Georgia |
11.0 |
|
21 |
Massachusetts |
10.7 |
|
22 |
Idaho |
10.0 |
|
23 |
South Carolina |
9.1 |
|
24 |
Utah |
9.0 |
|
24 |
Tennessee |
9.0 |
|
26 |
Oregon |
7.7 |
|
27 |
Nebraska |
7.3 |
|
28 |
South Dakota |
6.7 |
|
29 |
Texas |
5.1 |
|
30 |
Colorado |
4.6 |
|
31 |
New York |
4.5 |
|
32 |
Oklahoma |
4.4 | N/A = information not yet available or state not projecting a budget deficit for 2010. Source: compiled from “Update on State Budget Gaps: FY 2009 & FY 2010, National Conference of State Legislators.
The following op-ed by Growth & Justice President Dane Smith offers analysis on this topic, and the opinion that Minnesota should not emulate the reduced public investment, forced by a low-tax imperative, that has become the norm in Deep South states:
Minnesota joins Louisiana and Georgia as anti-tax holdouts among budget-battered states
|