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Minnesota
Arne Carlson, Republican
Legislature: Democratic
Took Office: 1/91
Grade: C
Arne Carlson's tenure in the statehouse could be called
"a tale of two governors." In his first term, during the
recession of the early 1990s, Carlson was one of the na-
tion's most taxing governors, having raised both the state
sales and income taxes. He also approved a flurry of new
expenditures for a costly health care program called
"HealthRight," "family services grants," environmental pro-
grams, and even $55 million for the Minnesota Timberwolves
sports stadium. But in his second term Carlson has proven
an effective promoter of pro-growth fiscal, economic, and
education policy. Last year Carlson approved the largest
tax relief bill ever in Minnesota. The bill cut property
taxes by 20 percent, created a $400 million education tax
credit, and slashed the state's health care provider tax.
However, Carlson supported a 10-cent increase in the ciga-
rette tax to pay for yet another professional sports sta-
dium, this time for the Minnesota Twins, who are threatening
to leave the Twin Cities. But a majority of Minnesotans op-
pose public financing of sports facilities, and that plan
was rejected with no immediate solution to the controversy
in sight. Carlson's main claim to fame, however, has been
as a passionate supporter of school choice for Minnesota
parents. Last year, in a high-stakes showdown with the leg-
islature and the education establishment, he promised to
veto a $6 billion education-financing bill if it excluded
his education tax credit proposal. The legislature finally
backed down, and the widely acclaimed tax credit plan is now
the law. Minnesota is arguably further along in implement-
ing genuine, innovative education reform than any other
state--thanks in large part to Governor Carlson.
Score
Grade
Rank
Overall Fiscal Policy Score
44
C
30
Spending Score
40
C
33
Revenue and Tax Rate Score
46
C
30
Amount
3.3%
Average Annual Change in Real Per Capita Direct General Spending through 1996
1.7%
Average Annual Change in Direct General Spending Per $1,000 Personal Income through 1996
-1.3%
Average Annual Recommended Change in Real Per Capita General Fund Spending through 1999
0.0%
Average Annual Change in General Fund Spending Per $1,000 Personal Income 1996-98
4.2%
Average Annual Change in Real Per Capita Tax Revenue through 1997
2.1%
Average Annual Change in Tax Revenue Per $1,000 Personal Income through 1997
-4.1%
Average Annual Recommended Change in General Fund Revenue Per $1,000 Personal Income through 1999
-1.4%
Average Annual Change in Real Per Capita General Fund Revenue 1996-98
-0.1%
Average Annual Recommended Tax Changes as % of Prior Year's Spending through 1999
0.5
Change in Top Personal Income Tax Rate, proposed and/or enacted (% points)
0.0
Change in Top Corporate Income Tax Rate, proposed and/or enacted (% points)
18.3
1998 Combined Top Income Tax Rates (Personal plus Corporate) (*0.5)
0.5
Change in Sales Tax Rate, proposed and/or enacted (% points)
0.0
Change in Gas Tax Rate, proposed and/or enacted (cents per gallon) (*0.5)