Fiscal Issues & Geeky Stuff

Are User Fees an Untapped or Overused Revenue Source?

This is a guest post, originally posted by Kerstin at the Course Weblog of PA5113:  ---- ----

Since 1975, many states including Minnesota have relied on user fees and charges to finance a broader array of programs and services. Governments use user fees and charges to pay for all or part of the cost of providing specific services or privileges. We use the two terms interchangeably here.They generally reflect a direct relationship between taxes paid and services received and make consumers more efficient, since they must face the true costs of their consumption decisions (Fisher 2007).

User fees have several advantages. Governments are better able to use market forces to set an economically efficient level of services; they avoid subsidizing services where benefits accrue only to specific individuals; and governments can institute user fees to control consumption. Critics argue that they also have one primary disadvantage: they contribute to a more regressive tax structure. Additionally, related administration and compliance costs may offset any efficiency gains associated with the fee.

Recently, Minnesota has seen an increase in the use of fees and charges to finance government services. From 2003 to 2008, the revenue growth from user fees and charges increased at rates greater than both inflation and population growth [see Chart 2]. Despite this spike, Minnesota ranks 38th in its reliance on revenue from user fees and charges and 30th in per capita fees and charges in 2007 (U.S. Census, 2007). However, Minnesota relies more on user fees and charges to fund post-secondary education than the national average.

We evaluated user fees and charges using criteria including efficiency, equity, sustainability and feasibility. Because user fees create a link between costs and benefits, they will be efficient, as long as the fee is optimally priced. Since only those who pay the fee benefit from access to a good or service, such charges are considered equitable. User fees, however, can be regressive as they do not consider a consumer’s ability to pay. Fees' revenue potential is limited as the “fee-base” is too small to support large revenue increases, reducing its adequacy. Fees may be administratively feasible when exclusion is possible, but it is also costly because someone needs to be present to collect payment. The political feasibility of fees may vary depending on how visible they are to the public. While new fees and charges may be unpopular, user fees are more politically feasible than taxes, because the number of people paying the fee are small relative to the total population.

Minnesota’s low reliance on fees in comparison with other states indicates that we should consider their use for a broader range of services. However, we should be careful not to overly rely on fees and charges if we want to maintain a progressive tax structure. Minnesota’s disproportionate reliance on user fees related to post-secondary education may be particularly harmful, as those who pay the fees may be least able to afford them. Instead, we should consider the expansion of user fees and charges in areas that aren’t as clearly targeted at populations that can't afford those fees.

Posted by Zhirong Zhao PhD on April 20, 2009 10:11 AM | Permalink ¤

Comments

Can I've the source file so that I can delete the background and remove the information that I do not need such as the PG logo etc.?
Also, how do I get the name from the video as well as the caption to display during playback?

Posted by: Trinh Knappert | June 1, 2012 4:53 PM

iwant to say that i miss george harrison so much i want to see him so much i really like him so much

Posted by: Scot Gauer | August 21, 2012 9:28 PM

I have tried almost everything, including the beta version and re-installing the templates with an "-f" factor. I've watched YouTube videos and followed the instructions, but since I did it wrong, I give up.
It's a FAIL...I screw it up.
I'm just a beginner of Xcode and Terminal.

Posted by: Domenic Pults | August 21, 2012 11:34 PM

Adore it, Molly. I'm a lover of all things pinterest as well. I'm definitely going to really have to try that sesame chicken!

Posted by: Carleen Leemow | September 9, 2012 12:09 AM

Check this out, $1800 to $3650 monthly, all in your spare time

Posted by: Rudy Munning | September 11, 2012 11:07 PM

You produced some decent points there. I looked on the internet for any problem and found most people may go along with with your site.

Posted by: Georgia Berendzen | September 12, 2012 4:45 AM

Hi there! I got your point but why one should consider sharing this one? =)

Posted by: Chanel Felts | September 12, 2012 10:13 PM

i wish u r not a worldwide known singer cos u r misleading d long term treasures-girls

Posted by: Browse Around This Site | September 14, 2012 6:57 PM

There are some actually good frameworks in this collection, thank you for sharing it Eric :)

Posted by: You Can Try These Out | September 15, 2012 5:19 AM

HCG Injections HCG Diet, HCG HCG Injections buy now HCG Injections HCG Diet, HCG Injections HCG HCG HCG Injections

Posted by: HCG Injections | September 15, 2012 6:04 AM

I believe know-how just causes it to be even worse. Now there's a channel to in no way care, now there wouldn't be considered a probability for them to find out.

Posted by: Rod Teaster | September 16, 2012 4:46 PM

OK I worked it out. So no worries. But I still have got a question... Where and how do I change the home page name to news? I don't want home as being a title and I've looked by way of many of the template's components and can not come across the node that I need to change to rename the home page!

Posted by: Logan Toomey | September 19, 2012 12:56 AM

Yes, and if your ip gets ban then you certainly can not do anything but you should make sure to use high quality material if you want to remain live on Hub Pages.!

Posted by: Moses Arau | September 22, 2012 12:14 AM

Heya to every. I'm from the Greece plus i get a interesting domain. Visit my webpage and say your thoughts and opinions. You Can Find many smart ideas and knowledge just about my job. It Is Really no charge 100% and not having registrator. Thanks A Lot To every single person that may look at my amazing web pages. This Will Aid my job. | θωρακισμένες πόρτες |

Posted by: visit my website | September 26, 2012 3:23 AM

You have noted very interesting points ! ps nice website . "Ask me no questions, and I'll tell you no fibs." by Oliver Goldsmith.

Posted by: Majalah Otomotif | September 29, 2012 7:35 PM

Thank you, I've recently been searching for facts about this subject matter for ages and yours is the best I've discovered so far.

Posted by: linked web page | October 1, 2012 11:00 AM

I understand who took these, so I won't comment about the lens/body combo... but I'll say this goes to demonstrate you do not require a $30K camera setup to make excellent images

Posted by: Ruthie Toelle | October 5, 2012 12:35 AM

A different issue is that video gaming has become one of the all-time greatest forms of recreation for people of every age group. Kids participate in video games, plus adults do, too. Your XBox 360 is probably the favorite gaming systems for people who love to have a huge variety of games available to them, and who like to relax and play live with some others all over the world. Many thanks for sharing your opinions.

Posted by: Wyatt Cahela | October 12, 2012 3:58 PM

Whats the point you are making? That he used Manjha to defend his vision of India.. or he chose manjha over other films.. What choic es do you think he had.. he was sent four shorts, one was about a kid in remand home, one was Girni, which also in a way is about survival, deals with poverty, third was the love story between a prostitute and a 24 hr. medical shop attendant.. any out of the four would have prompted you to write the same.. so what i am trying to say is you already have a formed opinion on him and manjha just provides you arms to highlight it and underline your judgement of him..His film Slumdog Millionaire was called that even before he came on board.. slumdog is a british slang, there way of saying it, there way of refering.. and in his or anyones parlance when they come to india to shoot , the first thing they would look for would be the slum.. where the character came from.. and then why pick only him, i shot my film in there twice, i love shooting the streets and the grimness.. i was asked questions after Black Friday, in india.. our journalists asked me this question ,Do you think Indian communalism is saleable abroad.. i am sorry but that is a very narrow point of view.. and extreme subjectivity..You want to blame someone for manjha.. blame me.. i gave him only grim choices..

Posted by: Visit This Site | October 14, 2012 4:42 PM

Greetings from Florida! I'm bored to tears at work so I decided to check out your blog on my iphone during lunch break. I love the info you provide here and can't wait to take a look when I get home. I'm surprised at how quick your blog loaded on my mobile .. I'm not even using WIFI, just 3G .. Anyhow, wonderful site!

Posted by: just click the next website page | October 16, 2012 2:53 AM

Great article! Although Im having a hard time swallowing the fact that Canadian Rye is capable of outselling all those categories. Is that based primarily on figures in Canada? Or America too? Because I have worked in retail for a very long time and hardly see Canadian whisky flying off the shelves. Actually I find Canadian whisky one of the harder sells.

Posted by: Why Not Find Out More | October 22, 2012 7:42 AM

Im not getting my hopes up. Remember that this is a state that has elected ridiculous clowns like John Kerry, Ted Kennedy, and Barney Frank for years. But if Mass. voters can start to open their eyes and step back from the edge, it would be a great sign.

Posted by: Browse Around Here | October 22, 2012 7:38 PM

Colleen, how sweet of you! It truly is this sort of exciting residing in G-ville and sharing it is really goings on. Everyone coming jointly, that's what it truly is about residing in a little town!br /Now who wants to purchase me espresso?

Posted by: index | October 23, 2012 11:15 PM

I'm so impressed with how well you have gathered and put together this article. It's well formatted and written. Quality work like this is a rarity. I appreciate the information and I agree with you.

Posted by: vaping syrup | October 25, 2012 2:33 PM

Hello, i really enjoy viewing your blog. I like the way its put together, and totally dig the concept. Is there any way to subscribe to your site?

Posted by: asian cams | October 25, 2012 9:01 PM

Not having my hopes up bc of what we wen through in football.

Posted by: Arvilla Gambel | October 28, 2012 2:37 AM

Flowers To Deliver...

Posted by: find someone free | October 28, 2012 10:47 PM

I really enjoyed your article. That is nice when you read something that is not only informative but entertaining. Outstanding.

Posted by: bettafishcare | October 29, 2012 2:43 AM

This is my first time I have visited here. I found a lot of interesting information in your blog. I guess I am not the only one who noticed this! keep up the impressive work. :p

Posted by: sick betta fish | October 29, 2012 2:52 AM

Thanks a great deal, I agree with a lot of the points you mentioned in your post.

Posted by: Felicia Winget | November 6, 2012 9:45 PM

I had been honored to get a call from my friend as soon as he observed the important ideas shared on the site. Looking at your blog post is a real fantastic experience. Thank you for considering readers like me, and I hope for you the best of success as a professional in this arena.

Posted by: bootszubehor | November 10, 2012 8:52 AM

Why are you using it as true that Romney is trailing this race? It really is a statistical lifeless heat. As well as the polls are oversampling Dems. Romney just isn't behind!

Posted by: Thermorollen | November 12, 2012 11:57 PM

I’ve recently started a blog, and the info you provide on this website has helped me tremendously. Thanx for all of your time & work.

Posted by: Sun Hershkowitz | November 20, 2012 7:51 AM

This is the type of well done article I enjoy. It also includes things I was unaware of. Glad I saw this article! Thanks!

Posted by: Neal | December 3, 2012 4:52 PM

Great site, I really love your writing. Thanks for sharing it with us jamesf1ank@yahoo.com

Posted by: Angelo Landi | December 6, 2012 10:47 PM

ooh really?Thanks! I totally love it. You've made me want to go out and buy the Dior Skinshimmers. As if there isn't already enough temptation to buy make up!

Posted by: Adoetted | December 17, 2012 4:45 PM

I have recently built a site, and the information you provide on this website has helped me tremendously. Thanks for all of your time & work.

Posted by: Dino Ruivo | December 24, 2012 12:35 AM

how quite a few individuals entered this competition ?

Posted by: Marjorie Zarillo | January 4, 2013 10:29 PM

Jim Parsons and Rihanna ideal!!

Posted by: Edith Veater | January 15, 2013 1:20 PM

I am positive that everything you have said will definitely pierce the ears of your readers and make them feel much more deeply about this

Posted by: Alla Raemer | January 17, 2013 8:40 PM

Hello to every single one, it’s really a good for me to pay a visit this website, it consists of valuable Information.

Posted by: This Site | January 19, 2013 8:40 AM

How hard is to succeed at the FAA Academy in ATC without any background?