Minnesota

Asset Outcomes

Minnesota is very strong in the Assets Outcomes Index, ranking 6th overall, earning an A. Minnesotans enjoy a fair distribution of assets among all residents, compared with the rest of the nation. Most notably, the state performs well in several measures of financial assets. Minnesota ranks 2nd in having low levels of asset poverty as measured by the proportion of households lacking savings to subsist for three months is low and a low proportion of households with zero net worth, ranking 3rd. Mean net worth is above average ($129,624), ranking 15th. While the overall homeownership rate is high (76%, ranking 4th), the distribution of homeownership among different people is more troublesome. The gap in homeownership between the wealthiest and poorest Minnesotans is large, ranking 40th, and the gap in homeownership between male- and female-headed households is also relatively large, ranking 39th.

Minnesota is helping to spearhead the field of health coverage for low-income people. Employer-provided health insurance is relatively high, with 76% of residents covered, ranking 3rd. A relatively low 22% of low-income parents lack insurance (9th), while 15% of low-income children lack insurance (15th).

Asset Policy

Although there is still much work to do in designing comprehensive asset policy, Minnesota is remarkable compared with its peers. The state earns an A, ranking 4th overall. Policymakers have made concerted efforts to boost financial assets, human capital, and small business development. Minnesota boasts support for Individual Development Account policies and a state Earned Income Tax Credit and has the 2ndhighest income tax threshold ($25,600) for public assistance. In terms of human capital, the state spends resources to help its students afford college (ranking 3rd in need-based financial aid) and offers matching funds to low- and moderate-income families participating in a college savings plan.

Minnesota boasts a strong set of health care policies. It is one of 10 states that offers Medicaid expansion for low-income adults without children, it offers family leave benefits, and it is ranked 1st in Medicaid expansion for low-income parents. Moreover, it is one of eight states that requires property insurers to disclose where and to whom they provide insurance in order to attempt to prevent insurance redlining.

Tax Policy and Accountability

Minnesota performs well in the transparency and accountability measures. Minnesota prepares a tax expenditure report that itemizes the value of revenues foregone via tax breaks and makes this report available on the web. Also, Minnesota has the capacity to determine the impact of changes in the tax code on taxpayers of all income levels.