The ongoing budget debate at the State Capitol begs the question: Where does Minnesota get the cash used to fund government programs?
By the numbers: Pew Trusts broke it down and found the majority — just over 60% — comes from taxpayers.
- Federal funding represents another 25% of our fiscal pie.
- Service fees, local funds and other sources make up the rest.
Between the lines: The heavy reliance on tax revenue — we're # 1 in the nation for that — explains the roller-coaster revenue projections that saw the state swing from a $1.3 billion deficit to a $1.6 billion surplus over the course of the pandemic.
Of note: This year's bottom line is bolstered by infusion of $2.8 billion in federal funds via the COVID-19 relief packages.
- Lawmakers received guidance on how they can use the money on Monday. But the cash is one-time funding and likely won't be used for any new, ongoing programs.
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