Home

Our View: State relies too heavily on fees

It surprises no one that fees on everything from hunting licenses to marriage certificates are up. But the amount of increase may surprise: 21 percent above inflation in the past five years.

In recent years, as Gov. Tim Pawlenty has pledged not to raise taxes, he and lawmakers have turned more often to increasing fees.

A report released by nonprofit group Minnesota 2020 is critical of the governor, saying he allowed fees to rise far above inflation while focusing attention on his tax policy.

It must be noted the source of the criticism comes from the group’s director, Matt Entenza, a former DFL legislator and no fan of Pawlenty.

But the report fairly and accurately raises questions about how much the state should rely on fees and what is the proper use of money raised by fees.

Traditionally, fees are used to fund the activity they are tied to — park fees go to parks, fishing license fees go to fish and water. But recent fee increases are going to plug holes in the general budget.

Taking fees away from what they are tied to is not good policy. People using a service should be expected to help fund it and most people don’t mind paying a little more for an activity they enjoy. People have less tolerance for paying more for a hunting license or ski pass when they know the money is going elsewhere.

High fees also inherently hurt lower-income people as the fees are a larger percentage of their income.

As the Legislature, convening today, begins dealing with a major budget deficit, there should be less reliance on raising fees to prop up the general budget.

Instead, after making necessary cuts, lawmakers should look at a mix of increases in income tax, property tax and sales tax, and a possible extension of the sales tax to clothing and food.