2018 Edition of How Does Minnesota Compare Released

MCFE has released its annual state fiscal benchmarking studies: How Does Minnesota Compare (HDMC).  The report uses the most recent (FY 16) Census Bureau data on tax collections and spending by state and local governments across the country.  HDMC's rankings are intended to allow for meaningful comparisons across states by differing from other comparisons based on Census data:

  • Tax rankings are based on a modified personal income basis ("cash income") that excludes types of personal income that cannot be used to support government operations (for example, the value of all Medicaid and Medicare benefits received in the state) and adds in other income that can be and is used to pay government taxes and fees (for example, capital gains and distributions from retirement accounts).
  • Spending rankings are reported on a "unit served" basis to better align government spending with its ultimate users and beneficiaries.
  • Spending rankings are also adjusted for state purchasing power differences to accommodate state-to-state differences in the price of goods and services.
  • "% of US" indicates amount relative to U.S. average (US = 100)

The full report includes a "frequently asked questions" section as well as Census Bureau definitions of spending categories to help interpret the data and findings.

Summary Tables