Back to school…for advocates too!

September 11, 2008

Not only are all the kids heading back to school, but fall seems to be a prime conference and training season for adults. Nan mentioned MCN’s Annual Conference last week, but I wanted to fill you in a couple of other learning opportunities coming up. Honestly, this isn’t just self-promotion - I really think these events are very useful for anyone interested enough in policy to read a blog called “Minnesota Budget Bites.”

1. Trouble in Lake Wobegon: Is Minnesota Becoming Average? If you’re not familiar with The Annual Conference on Policy Analysis (sponsored by the U of MN’s College of Continuing Education), it’s the ultimate Minnesota gathering of policy geeks from the government, private and nonprofit sectors. And since I sat on the planning committee this year, I know it’s got a great program tackling topics like social disparities, state and local tax system (our own Nan Madden is on the panel!), alternative fuels and the rural economy, transportation, mortgage foreclosure and more. And it’s a great networking opportunity!

The headliner is Miles Rapoport with Demos: A Network of Ideas and Action. The guy is fascinating and has a wealth of experience. I first heard him speak at a policy conference in Chicago back in 2001. Ever since then, I’m always excited when I see him on a program - I know I’ll be entertained and educated.  The early-bird registration deadline for this conference is October 3rd.

2. Invest in Minnesota. This is a coalition of nonprofit, labor and religious groups (including the Minnesota Budget Project) that are holding strategy discussions around the state to build support for raising an adequate level of revenues, in a fair way, to support key investments in Minnesota. You’ll find out how the state got into the current financial mess…and how we can start to turn things around. We have free events coming up in Duluth (Sept 12), Minneapolis (Sept 11, Sept 13) and Mankato (Sept 24). More will be scheduled.

3. Follow the Dollars.This is a training put together by the Minnesota Budget Project. There are actually two separate workshops - one on the state budget and one on the federal budget. The goal is to equip you with the basics you need to know about the budgeting process - the terminology, the time-lines, the key advocacy points and any insider tips to make you more effective in your work. I think both beginner and experienced advocates tell us it’s a very helpful training. The next chance to take either of these workshops is November 11 in Saint Paul - but we are also finalizing the details for one in Mankato on September 24 - check our website soon.

Happy learning!

-Christina Wessel

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Posted by Christina Wessel

Getting excited about MCN’s Annual Conference

September 2, 2008

The Minnesota Budget Project is an initiative of the Minnesota Council of Nonprofits (MCN), so we’re gearing up for MCN’s Annual Conference on October 2 and 3 in St. Paul. Why am I excited about it? Here are my top two reasons:

  1. It’s one of the biggest gatherings of nonprofit folks in Minnesota, and there will be strong participation by our colleagues in philanthropy and government. The networking opportunities are fantastic, especially since the conference brings together people from every kind of nonprofit and doing every kind of nonprofit function, from public policy to management to fundraising. And every year I feel honored and inspired to be part of the nonprofit sector when we get to hear about the amazing work of the winners of the Nonprofit Mission and Excellence Awards.
  2. The Minnesota Budget Project is helping put together some cool breakout sessions. We’ll explore the opportunities for Minnesota to enact truly transformative policy changes in a session on How Nonprofits and Government Can Reframe and End Poverty. Christina Wessel will be talking about Climate Change: The Most Important Low-Income Issue Since Welfare Reform. And if you have not been able to attend one of the networking lunches around the state held by the Invest in Minnesota Campaign, I’ll be presenting with our allies from the labor movement and faith communities about this common effort to make the case for raising adequate state revenues fairly. And that’s just the stuff that the Minnesota Budget Project is working on!

Add in the opportunity to meet some of Minnesota’s new philanthropic leaders, hear a keynote by Judge Pamela Alexander of the Council on Crime and Justice, and attend breakout sessions on issues ranging from Nonprofit-Government relations outside the U.S., Supervising Smart, Ask the HR Expert, and more…well, it’s just a great combination of issue topics and skill-building opportunities. If you aren’t already registered, make sure you do by September 18.

-Nan Madden

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Posted by Nan Madden

This is as good as it gets…and that’s not saying much

August 26, 2008

The U.S. Census Bureau released statistics today on poverty, health insurance coverage and median income for 2007. Minnesota showed basically no statistically significant change from 2006 on any of these measures. We held our own. However, the news is none to good when we consider that we were wrapping up a six-year ”economic recovery” last year (and have been sliding into a downturn in 2008). If we look at how Minnesota fared between 2001 and 2007, we find that we are actually worse off.

Poverty is higher: Poverty in Minnesota rose to 9.5% in 2007, up from 7.8% in 2001. Child poverty in 2007 reached 11.6%. Although this didn’t represent a significant change from 2001, it is significantly higher than 2000 (when childhood poverty was at 8.6%).

More uninsured: Nearly 9% of Minnesotans were without health insurance in 2006-07 (a two year average). This was significantly higher than the 7.5% without insurance in 2000-01. At the national level, the Census Bureau reports that the number of uninsured actually declined between 2006 and 2007; that was almost entirely because there was an increase in the number of people covered by government health insurance. Makes you wonder what would have happened in Minnesota if we hadn’t cut public health care programs this decade…

Household income fell too: The median household income in Minnesota fell from $58,363 in 2001 to $55,802 in 2007 (adjusted for inflation).

This is not good. Consider that 2008 represents the beginning of a new economic downturn and the state is expecting to face significant budget deficits when the legislature convenes next January. It seems almost certain that the trend will continue downwards over the next few years.

Here are a few more interesting resources on the Census release if you are so inclined:

-Christina Wessel

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Posted by Christina Wessel

Congressional candidates making the rounds

August 7, 2008

On Aug. 5, my colleague Jeannie Fox, deputy public policy director for the Minnesota Council of Nonprofits, and I attended Farmfest 2008 in Redwood Falls. We listened to debates between Minnesota’s U.S. Senate candidates as well as Congressional candidates from across the state. We also had an opportunity to talk face-to-face with Reps. Tim Walz and Collin Peterson about the importance of including federal fiscal aid to the states in any future economic stimulus bill. We also talked with state House Minority Leader Marty Seifert and various legislative staffers, among others.

With Congress in recess until after Labor Day, Minnesota’s senators and House members are at home attending town hall meetings, debates, picnics and various events open to the general public. Congress also plans to adjourn in early October so that members can hit the campaign trail. These events are a great opportunity for nonprofit leaders and community members (like you!) to talk to your members of Congress about the issues that matter to you and your organization. Our members of Congress cannot represent us well if they don’t know what we think about the issues that matter most, whether it’s education, health care, social services, or the environment. To find out what public appearances your member of Congress will be attending, contact their office.

-Steve Francisco

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Posted by Steve Francisco

Using inflation data to measure increases in the cost of living

July 21, 2008

We recently got a question about how to measure cost of living increases, and since that has come up before, a blog post seemed in order. Often folks want to know what cost increases they should use for budgeting purposes, and while we can’t tell you what will happen in the future, we can use the recent past as a guide.

Increases in the cost of living are commonly measured through changes in the Consumer Price Index, or CPI. The CPI is calculated by the U.S. Bureau of Labor Statistics (BLS). An increase in the CPI equals the amount of inflation in prices. In June, the most recent month when data is available, the BLS reports that the CPI had increased by 5% compared to a year ago.

Go to the Bureau of Labor Statistics for any inflation-related information.

  • It has an inflation calculator that will do the adjustment for inflation for you - for example, it shows that $20 in 1980 has the same buying power as $53.11 in 2008.
  • The most up-to-date information on changes in inflation are on the CPI Home Page.
  • To do the calculations yourself the BLS provides a handy table.

Feel free to email Katherine on how to use the table (katherine@mncn.org) or with other questions about navigating the BLS site - it has a wealth of information that can be a little overwhelming.

The buying power of U.S. workers’ wages is certainly hurting right now.  Inflation for 2008 is tracking above 4%, while weekly paychecks this past year have increased just 2.8%.  This decline in earnings power means a person’s earnings doesn’t go as far as it used to. And that’s not good news for the economy.

-Nan Madden and Katherine Blauvelt

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Posted by Katherine Blauvelt

And now about a different budget…

June 30, 2008

…our budget. Yes, just like the State of Minnesota, the Minnesota Budget Project also needs to find revenue streams to support our many services…like this blog. So this is where we slip into MPR-style: “if you have appreciated getting quick budget analysis and helpful background information throughout the 2008 Legislative Session, please consider donating to the Minnesota Budget Project.” Unlike MPR, however, we won’t keep asking you all week. This is it.

Seriously, this blog was an experiment. We thought we’d give it a try this session to see if fellow advocates, the media, policymakers (and other great folks) found the information useful. Based on all the extremely positive feedback we’ve received, it seems to have been a great success. And it’s been lots of fun for us, too. Plus, we’ve learned a few things along the way and hope to make it even better next session.

So the blog is here to stay. We are toning it back a bit during the summer, then swinging into full gear as the 2009 Legislative Session approaches. In the meantime, all of us would appreciate it if you would consider making a donation to the Minnesota Budget Project (we are an initiative of the Minnesota Council of Nonprofits and donations are tax-deductible!). You would be supporting our rapid response efforts on the blog, as well as all the other in-depth analysis we provide on state and federal tax and budget issues.

Thanks!

-Christina Wessel

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Posted by Christina Wessel

Responding to budget woes

June 16, 2008

States across the country are feeling the pain associated with a weakening economy. And worse, some are responding with troubling budget cuts. A new analysis by the Center on Budget and Policy Priorities finds that 18 states - including Minnesota - have made or have proposed budget cuts which could harm our most vulnerable residents. Examples from the report include:

  • In Tennessee, an estimated 30,000 – 40,000 seriously ill people are expected to lose hospitalization and other needed medical services.
  • New Jersey’s governor has proposed cutting funds for charity care in hospitals by 15 percent.
  • Florida has cut aid to local school districts for the current year by $130 per pupil.
  • States making or proposing cuts in higher education funding include Alabama, Arizona, California,  Florida, Kentucky, Maine, Minnesota, Nevada, New Jersey, New York, Rhode Island, South Carolina, Tennessee and Virginia.  Large tuition increases are likely in some of these states. 
  • In Kentucky, the public defender will eliminate 10% of positions and decline certain types of cases.

States have three main tools in responding to a budget shortfall: budget cuts, use of budget reserves or one-time sources, and raising revenues.

Minnesota has made heavy use of the first two options, but so far the option of raising revenues has been largely off the table. The result? Our state is likely to face an even larger revenue shortfall when the legislature reconvenes in January 2009. 

Minnesota’s 2008 legislature didn’t do our state any favors by kicking the budget-deficit can down the road.  And after years of budget shortfalls and severe limits on any broad-based revenue increases, policymakers are finding it increasingly difficult to trim the budget in ways that do not significantly interfere with Minnesota’s ability to support important priorities ranging from health care for seniors to access to affordable higher education. Without additional revenues, we may be contemplating the kind of cuts happening in other states.

 -Katherine Blauvelt

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Posted by Katherine Blauvelt

Don’t take our word for it

April 23, 2008

Minnesota has a strong backbone of nonprofit research and advocacy organizations that do a tremendous amount of important work. Many have published helpful information on the budget proposals from the Governor, House and Senate. Here are a couple that I know about –

  • Conservation Minnesota (formerly the League of Conservation Voters Minnesota) just published an analysis of the Governor’s proposals that effect Minnesota’s lakes, rivers and land. Also check out their series of end of session analyses, going to back to 2003.
  • Affirmative Options, an anti-poverty coalition, has a short & sweet background on health and human services spending trends. This is essential reading in order to understand the current debate over issues like the Health Care Access Fund dollars (there’s a link to ”Budget reality vs rhetoric” on the right-hand side of their homepage).

This is not a comprehensive list! Please use the comment function of this blog to post other analyses that you know of. And, of course, the Minnesota Budget Project will soon release its own analysis, comparing the Governor-House-Senate proposals on E-12 education, economic development, health and human services, taxes, and other issue areas.

Happy reading!

-Katherine Blauvelt

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Posted by Katherine Blauvelt

A little primer on budget conference committees

April 9, 2008

The supplemental budget conference committee met yesterday to start working through the bill. They walked through the spreadsheet and language for the Transportation and State Government articles. On deck for today are E-12 Education, Agriculture and Veterans Affairs, Environment and Energy, and Public Safety. But that can always change.

As for Taxes and HHS? Well, Senator Cohen mentioned that they are still deciding whether to include the tax provisions in this conference committee or handle it separately. There was no mention of HHS. But it occurred to me that Senator Berglin and Rep. Huntley might have been left off the official conference committee so that they could spend more time negotiating their part of the bill behind the scenes…rather than spending hours sitting in hearings.

But you don’t need me to keep you up to date on all this stuff. There are great on-line resources you can use anytime.

If you want to get notices about meetings of the conference committee, sign up to get on the e-mail notification list for the Senate Finance Committee. In the drop-down box, it’s the one just after “Environment and Natural Resources.” This is particularly helpful later on in the process, as these conference committee hearings can get extremely unpredictable…last minute meetings, frequent delays and sudden cancellations.

Side by side comparisons of the House and Senate bill language are available from the Revisor’s office. If you are going to a conference committee hearing (or you can sometimes watch it on TV or on-line) it’s handy to print this out beforehand for your bill so you can follow along with the discussion. There is another type of side-by-side comparison that summarizes the provisions (rather than including the actual bill language). I don’t remember seeing these on-line, so I think you just have to be at the hearing at the right time to get a copy.

And you can also find the spreadsheets (called “tracking sheets”) detailing the fiscal impacts of the House and Senate proposals from their fiscal analysis departments: Senate Fiscal Analysis and House Fiscal Analysis. At this point in the session there are a bunch of them, and it can be a bit of an acquired skill to read them. But, if it’s really important, you can send me an e-mail (cwessel@mncn.org) and I can try to help you out.

-Christina Wessel

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Posted by Christina Wessel

Spending by not taxing

April 1, 2008

A recent bill to eliminate tax preferences or tax breaks for some types of businesses while lowering the corporate tax rate on all corporations has produced plenty of debate around when is it good policy (or good for Minnesota) to promote public policy goals through the tax system. There’s a very useful resource on this subject - the State of Minnesota Tax Expenditure Budget. The Minnesota Department of Revenue published the 2008 edition just last month. Conducted every two years, the report details tax exemptions, deductions, credits and lower tax rates given to certain groups, people or businesses or particular activities. It’s a 180+ page report, including descriptions and the cost of state and local tax expenditures. It’s a great read.

To quote the Department of Revenue, “These provisions are called ‘expenditures’ because they are similar to direct spending programs.” They just show up on the other side of the balance sheet, in the form of reduced tax revenue.

So tax expenditures are just another way of making public policy – promoting a particular activity or supporting a particular group. The theory behind  these expenditures is that government can encourage homeownership through the mortgage interest deduction, or help college students through the exempting of scholarships and grants from the income tax. And just like any other issue, there are pros and cons to each tax expenditure. At least the Tax Expenditure Budget provides us with a baseline of knowledge so we know the cost of these policies.

-Katherine Blauvelt

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Posted by Katherine Blauvelt

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