Guest column: Checkoffs: How much would you donate?

Published 12:00 am Saturday, March 8, 2003

How much would you contribute? This past week, I began drafting language for a bill that would add some new “check-off” contribution boxes to Minnesota’s income tax forms. Understanding that Gov. Tim Pawlenty is holding firm to his pledge not to raise taxes in fixing the state’s $4.2 billion deficit, and seeing that many special interest groups are concerned about funding reductions, perhaps citizens might be more willing to vote their wallets at tax time for programs they care about.

Often when I meet with special interest groups from the Arts Council to the Minnesota Zoo, their first and often only solution to the budget deficit is raise taxes. However, even if taxes were to go up, they would not likely cover the entire $4.2 billion in program reductions. So I then ask, even if we did raise taxes, how assured do your feel that your program would benefit? My first priority for any additional funds would be for nursing homes. Under a new “check-off” program, people can be assured that this new tax revenue will go to their program.

Under my proposal, I would add $1 or $5 check-off boxes for each of the major general fund budget areas – E-12 Education, Higher Education, Health & Human Services, Economic Development, Agriculture, for example. Contributions would be put into separate funds. Only after the legislature has adopted its two-year budget would its respective committees meet to disperse this money.

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Minnesota already has check-off boxes where tax filers can choose to send money to the State Election Campaign Fund and the Nongame Wildlife Checkoff Fund. In 2000, both check-offs earned just under $2 million.

In 2001, 9.2 percent of tax filers made a Campaign Fund check-off compared to 19.3 percent in 1991. One reason may be that many citizens are instead opting for the state’s Political Contribution Refund program that allows them to make individual $50 refundable contributions to candidates. Although participation in the Nongame Wildlife check-off program has slipped too, individual contributions have increased. For the 2000 tax year, only 3 percent of filers made an average contribution of $12.

Every state with a broad-based income tax has at least one check-off program, but Minnesota is lagging in the number and variety. As of 2000, there were 179 check-off programs in 41 states. While most have a wildlife, political contribution or child abuse prevention check-off program, others have specific programs to benefit tourism, veterans, homeless, healthcare, and more.

It won’t cure the budget deficit, but adding check-off boxes for general fund programs gives taxpayers a voluntary option to further support areas of the budget they are most concerned about.

Got a question or concern? Write me at 579 State Office Building, 100 Constitution Ave., St. Paul, MN 55155, or call me, toll-free, at 1-877-377-9441. My e-mail address is rep.dan.dorman@house.mn.