The combination of economic hardship and a shrinking safety net has lead to an increase in the Minnesota homelessness population.  A recent study by the Wilder Foundation counted 9,452 homeless adults, youth, and children in October 2009.  The same survey has been conducted triennially since 1991 and serves as a indicator of the state’s most marginalized.

The homeless population is up from 7,751 people in 2006 and is at the highest point since the study began.  Greg Owen, the project’s director, stated, “These results are troubling but not surprising.  The tough economic landscape of the past few years coupled with the recent shrinking of the  safety net has made life a lot tougher, especially for those already on the margin.”  Follow this video link to see Owen’s interview on the Almanac.

Count of homeless people

Wilder Research Minnesota Statewide Study, 1991-2009

Recent economic hardships has been a reason for the surge in homelessness.  According to the study, thirty-nine percent of the adults in the study left their last permanent housing because of eviction, foreclosure, or failure to have their lease renewed.  This figure is an increase of 32 percent compared to 2006.  Additionally, 40 percent reported a job loss or reduction in hours worked was a reason for their loss of housing; an increase of 31 percent compared to 2006.

Percentage of homeless adults who are employed

Wilder Study, 1991-2009

The statistics are surprising considering efforts by the legislature and governor to combat homelessness with policies such as Heading Home Minnesota.  Heading Home was created in 2004 as a coalition of public and private groups with the purpose of ending homelessness by 2010 by creating 4,000 units of housing.  This program has made progress, but it is very unlikely it will reach the goal anytime soon.

Lack of jobs with livable wages, lack of accessible and affordable health care, and a lack of inexpensive housing convenient to public transit are related symptoms the growing problem.  Specific attacks by Pawlenty on programs to protect the most vulnerable such as General Assistance Medical Care (GAMC) make the state’s most marginalized a victim of his “no new taxes” mantra.

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You know the economic crisis is real when the Westbrook-Walnut Grove High School junior class trip to Washington, DC, is being reconsidered because the class can’t afford it.

At the November WWG school board meeting, junior class representatives informed board members that they doubted that enough students would commit to the estimated $1200 cost to make the trip possible. The junior class is just shy of 60 students. Generally, a little better than half the class is required for a trip to be viable.

Over half of WWG’s students qualified for free or reduced-price lunch in 2007. About 16 percent live in poverty. 70 percent are white and 30 percent are Hmong.

The school board generally permits a class trip to Washington, DC, only. I can imagine school board members’ surprise when class representatives offered Denver or possibly a greater Minnesota trip as an alternative. Typically, the board shoots down proposals for Hawaii.

The WWG school district lies in the southwestern heart of Minnesota. Everything is at least a thirty mile drive with Marshall being the closest small city. Driving “up north” means driving to Willmar and Green Lake in west-central Minnesota. Visiting the Jeffers Petroglyphs and the Kensington Runestone is no substitute for our nation’s capitol.

A class trip is not a core part of a high school education. It’s not the same as English, math, physics or social studies. Abandoning one more educational enrichment activity is, however, symbolic of the decline of Minnesota’s commitment to a public school education.

It’s also hard to escape the conclusion that rural school districts feel financial cutbacks’ sting more sharply than their city counterparts. Demographic shift and geographic isolation make it difficult for rural schools to realize the same economies of scale enjoyed by larger, more populous districts.

The WWG school district doesn’t pay for a junior class trip; the kids and their families do. The school board authorizes the function. Technology certainly brings the world closer to Westbrook and Walnut Grove but I feel sad for the students; there’s no substitute for witnessing the changing of the guard at Arlington National Cemetery’s Tomb of the Unknowns.

The real solution flows from growing Minnesota’s economy, creating business and job growth, and properly funding our schools. Moving Minnesota forward requires the best education possible to build the best future possible.

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On a tour through the state’s newspapers today, this paragraph at the bottom of a story in the West Central Tribune in Willmar jumped out at me. It discusses the rise of the number of students in the New London-Spicer school district that qualify for free and reduced-price lunch, which is the generally accepted marker for students who live in poverty.

The stats: Prairie Woods Elementary saw a jump from 25.5 percent to 33.9 percent; New London-Spicer Middle saw a jump from 20.4 percent to 28.3 percent; New London-Spicer High saw a jump from 16.2 percent to 23.7 percent.

What caused this jump? A phone call to Superintendent Paul Carlson shed a little light:  It’s the difficult economic times of today. “I would say that we’re both doing a better job of identifying students who qualify for these programs and making them available to them, and there are just more students who need these services,” he said.

There isn’t much industry in the district. The largest employer in the school district is the school district, Carlson said. Most parents work in Willmar or St. Cloud, so the district has been slightly insulated by the economic downturn. New London-Spicer’s percentage of students who qualify for free and reduced-price lunch remains lower than neighboring districts.

On a more positive note, the increase in students who live in poverty means more federal dollars from the Title 1 program to help these students. Carlson said the district will see about $80,000 extra next year because of the jump. He expects that the money will be used to keep the all day every day kindergarten program in place.

Our school finances are a complicated web of interactions and why not? Complicated interactions abound around us, so complicated school finances shouldn’t be subject to different rules. But doesn’t it seem a bit perverse that huge swaths of a school district’s students – more than a quarter of all students! — can drop below the poverty level with just a shrug and a sigh? And isn’t even more perverse that this rise in poverty will result in an economic boon for the school district?

A complicated web, to be sure, but it is an unfortunate web.

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Happy Friday everyone. Here’s your news roundup:

MinnPost: Southwest light-rail route: The wise transit choice may not be the popular one–yet

From MN2020′s very own Conrad deFiebre–a very interesting piece on why it might make sense for the southwest light-rail route to bypass Uptown.

St. Cloud Times: Delta to end St. Cloud air service this year

Post Bulletin: Xcel one step closer to expanding nuclear power plant

MPR: Educators fear payment delays may be permanent

“Minnesota school officials say they’re worried a delay of more than $1 billion in state education funding could become a permanent cut.

Gov. Tim Pawlenty used the delay to help balance the state budget after the governor and DFL lawmakers couldn’t agree on a budget solution. Some lawmakers agree it may be very hard to make school districts whole again.”

Star Tribune: Homeless and hidden in Minnesota

“The Wilder Research Center has conducted a statewide homeless census every three years since 1991, said Greg Owen, a research director at the center. About 9,000 people were counted in the last survey taken in 2006, he said.

Numbers have not been updated since, said Owen.

“We don’t know exactly what we’ll find this year,” said Owen. “But I think with the foreclosures, lack of job opportunities and all of the economic news, we’re going to find a significant number.””

MPR: High premiums await those with expiring COBRA benefits

So many people have lost their jobs in this recession. Some have taken advantage of COBRA–currently made more affordable by a stimulus package subsidy–to continue their employer-based health insurance. But what will those people do when that subsidy runs out?

We’ll focus on the loss of health insurance in general and COBRA benefits specifically next week on MN2020′s online Tuesday Talk.

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mnpACT: Examining Pawlenty’s Budget: Can We Afford It?
mnpACT has an interesting blog post that examines some issues with Pawlenty’s budget that are worth considering, inlucding, future debt, constitutional issues, future budgets, and bond ratings.

Finance and Commerce: Retailers’ share prices rebound on business plan adjustments

Mankato Free Press: Xcel may raise rates
Every time there’s a story about rising energy costs, there’ another argument for increasing investments in green industry.

Xcel’s most recent rate case was filed on Nov. 2, 2005. The utility asked for an increase of 8 percent, or $168 million, and the Public Utilities Commission decided Xcel was entitled to a $131 million increase.
Before that, Xcel had not filed a rate increase since Nov. 2, 1992, when it asked for $119 million per year more and received $72 million.

Consumers are actually already paying for most of the increase Xcel is requesting.

Finance and Commerce: Money 101: Professionals help teach financial responsibility, but say more training is needed

Finance and Commerce: U.S. Bank discounts loans on ‘green’ vehicles
Providing incentives to give green cars an extra consideration could provide a big payoff for Minnesota.

“To further its commitment to environmentally friendly business practices, these loans will be set up on automatic payment from a U.S. Bank account and no paper statements will be generated. The program is available on new and used cars (up to 6 years old).”

Bemidji Pioneer: NCHS officials voice hospital concerns during visit to State Capitol
NCHS officials are drawing attention to the implications of proposed budget cuts that would affect Minnesota’s hospitals. In order to move Minnesota’s health care system forward, we need to make the case that even in a time of budget crisis we cannot be sacrificing critical services.

Potential budget cuts under Pawlenty’s health care proposal would eliminate $764 million in state funding for hospitals over the next two years. Huntley said such reductions “would be devastating to hospitals and Minnesota communities – eliminating critical care options for patients, shedding thousands of jobs, and potentially forcing some Minnesota hospitals to close.”

Daily Planet: Black poverty at 40% in Duluth
The income gap is as stark as ever in Duluth with respect to race. 40% is a stunning number for a city the size of Duluth.

Miller reports that in Duluth (according to the 2000 Census and the report “Race Matters” complied by the Duluth Anti-Racism Coalition) 40 percent of African Americans and 43 percent of Native Americans are living in poverty, compared to four percent of Whites living below the poverty level.

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MPR: How does Minnesota’s economy compare to the national economy?

Minnesota’s State Economist analyzes the current condition of Minnesota’s economy and compares it to the past two decades he’s served in this post. He’ll also look into his crystal ball.

TC Daily Planet: Rent or food? Housing costs burden one in three metro families

One-third of all households in the seven-county metro region now pay more than 30 percent of their income on housing. That’s considered “cost-burdened,” with high housing costs eating up money so there’s not enough for other household needs. About 75 percent of all low-income households are cost-burdened compared to 33 percent of all people. A total of 215,000 households – about one in five in the metro area – are both low-income and cost-burdened, according to Trends and Issues 2008:Affordable housing for low-income families a report issued by the Wilder Foundation at the end of 2008.

MPR: Minn. auto dealers optimistic about Obama plan

“Car dealers in Minnesota are expressing optimism about President Obama’s plan to jump-start domestic auto sales. The plan includes a promise that the government will stand behind domestic car makers’ warranties. That’s designed to reassure customers that it’s safe to buy from financially troubled manufacturers, even if they declare bankruptcy. The plans aim to inspire consumer confidence and jolt the domestic automakers out of 30-year lows in sales.”

MPR: Economic worries gnaw at Minn. Guard members

“I tried finding a job,” said Johnson, 26. “I was trying to find anything. McDonald’s, Wal-Mart, anybody that would hire. And you know, I got thinking, they’ll let me do a one-year contract, it’ll help get caught up on bills, get some extra money in the savings account. When I get back [from Iraq] hopefully the economy is up a bit.

Political Animal: $500,000 a day for special session, Sen. Minority Leader? Nope. (Check out our quick poll on this matter over at MN2020)

According to legislative researchers, the per day cost of special session is closer to $40,000 a day, if per diem, mileage and staff costs are included, he said. Brodkorb quite adamantly said he hadn’t heard Senjem use the $500,000 figure before last Friday.

Minn Post: Foundation group throws out big ideas to shake up state budget talks

“The library stacks are full of reports with great ideas that never went anywhere. This latest set of ideas could go out with a bang, a whimper and maybe a success or two. But give the foundations credit for thinking big and throwing out controversial ideas. (Note: They refer to the ideas as the beginning of a conversation, not recommendations.)”

Finance and Commerce: Wayzata-based Broit Light goes after multi-billion-dollar LED market

Given Broit Light’s unique technology, the company’s revenue potential could be enormous. In the United States alone, total lighting is more than a $122-billion-a-year industry. The federal Department of Energy estimates that LED lighting is currently more than a $20-billion-a-year segment that’s projected to grow at a rate of 20 percent or faster during the next five years.

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