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Green energy, a diamond in the rough economy
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.
Posted in Economic Development | Related Topics: Energy Housing Market Sustainability Unemployment Poverty Veterans
Want to Create Jobs? Let’s Build
With an unemployment rate now mirroring the national average, Minnesota's economy is in trouble. The state should be working to kick start job creation. There's just one barrier; Minnesota has a $6.4 billion budget deficit. Unlike the federal government, we can't run a deficit. It will take a combination of budget cuts and new revenue in the form of progressive tax increases on the state's highest earners to solve this financial mess.
However, there is an immediate solution to create jobs. State policymakers can borrow money to build state infrastructure projects. A capital investment package will put thousands of Minnesotans to work immediately and make much needed infrastructure investments in areas like our state colleges and universities.
While we should be having a long-term policy debate about how to grow Minnesota's economy and create jobs, a capital investment package creates jobs immediately statewide. Creating immediate new jobs is an area where the Governor and legislators should all agree.
Posted in Economic Development | Related Topics: State Budget Housing Market Bonding Bill
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Housing & Green Energy Plans Coming into Focus for Minnesota
Here's the news in our sights today:
Finance and Commerce: Minnesota 2020 proposes new program to stabilize housing
St. Paul-based think tank Minnesota 2020 is calling for a new program to stabilize Minnesota's housing market. The group, which was launched in 2007 by former DFL state House Minority Leader Matt Entenza, has come out with a report that calls for the state to create a program that guarantees homeowners' down payments. Minnesota 2020 calls it the Minnesota Home Values Guarantee Program
WSJ: Crop Forecast to Show State of the Sector
Luke Chandler, director of agricultural commodity research for Dutch financial giant Rabobank Group, said he expects U.S. farmers to plant 84 million acres of corn compared with 86 million acres last year. A smaller corn harvest, plus federal mandates that require gasoline marketers to use more corn-derived ethanol fuel this year, would tend to keep the seasonal average price of corn between $3.50 and $4 a bushel -- roughly twice what it was for much of the 1990s and early this decade.
Finance and Commerce: Purchase gives Wisconsin Power the chance to develop 400MW wind farm
Pending approval, Schultz said WPL plans to start development of the 200-megawatt first phase in mid-2009. The utility, which serves 1 million electric consumers in Minnesota, Iowa and Wisconsin, owns one other wind energy development.
Finance and Commerce: Green Hercules subsidiary aims to be giant in cap-and-trade offsets
Emissions trading, better known as cap-and-trade, sets an overall limit ("the cap") on how much pollution an industry can produce. Individual companies within that industry get pollution permits, which can be traded. By investing in equipment that reduces pollution, a company can sell its credits to competitors that haven't reduced pollution. Thus, companies have a financial incentive to cut their emissions of greenhouse gases.
Star Tribune: Foreclosed eyesore converted into energy-efficient home
Thanks in large part to a Hennepin County neighborhood-maintenance program, a boarded-up, foreclosed home at 4307 Wentworth Ave. S. in Minneapolis has been torn down to its foundation, then rehabilitated into a virtually new, three-bedroom, two-bath, energy-efficient house, complete with a two-car garage. It now has an estimated market value of about $200,000 - but one lucky income-qualified buyer will be able to pick it up for $142,000.
Star Tribune: Editorial: Sports scholarships, foreign students
"For academic and athletic reasons, both are bad bills. But even more important, the message behind them is that Minnesota is increasingly inward-looking. This at a time when it should be presenting itself as a state that expects and accepts diversity and is ready to work with and compete against global competition, whether in the boardroom or up against the boards on a hockey rink."
Echo Press: Funding comes in for home weatherization projects
""Rising energy costs are making it hard for Minnesotans to heat their homes in the winter," said U.S. Senator Amy Klobuchar, D-Minnesota. "These funds will help families save money, create jobs and businesses, and reduce energy consumption to make sure Minnesota families aren't left out in the cold. It is imperative that we give our families the help they need to keep pace with the sharp increase in heating costs.""
Posted in Economic Development | Related Topics: Energy Environment Sustainability Higher Education Economic Recovery
A Tour Through School Budget Disasters
A tour through newspapers across the state offers us another look at how the miserable funding situation in Minnesota is harming students and schools.
To recap, Minnesota 2020 reported one month ago about the many school districts that can't make ends meet and the steps they will take to balance their budgets. Because the state share of aid to schools has dropped 13 percent since 2003, schools are forced to plead with local taxpayers to raise their own taxes to meet general school needs - a tough sell in today's economy. The result is a school system that is breaking under the weight of state underfunding. Teachers are being laid off leading to skyrocketing class sizes while effective programs are being cut so students get a worse education. In the last week alone, the following newspapers offered these reports:
The Cloquet school board voted to eliminate five elementary teachers and cut by half the time of three high school science, math and history teachers.The Pine Journal reported that the school is facing an estimated $1.6 million budget deficit. They plan to use district reserves and will make more cuts if the current cuts aren't enough. Other reductions presented to the board included: four-day school weeks, eliminating busing within two miles for middle and high school students and eliminating middle school sports.
The Perham Enterprise Bulletin put names to the cuts in the New York Mills school district. The district, which last Monday cut about $433,000 from the 2009-10 budget, will not fill positions opened by the retirements of elementary teachers Marlene Boedigheimer and Dick Wegscheid. In the high school, science teacher Amy Drake and English teacher Kerrie Speer will not return, while social studies teacher Carrie Jorgenson and Spanish teacher Jennifer Brunsberg are taking unrequested leaves of absence.
The Pine River Journal reports that the Pine River-Backus School Board is making $407,130 in adjustments which includes one full-time equivalent elementary teacher, one FTE elementary special education instructor, .6 FTE high school science teacher, one FTE high school industrial tech teacher, .8 FTE high school English teacher, .34 FTE art instruction, .3 FTE media specialist, .4 FTE high school Family and Consumer Science teacher, and $83,738 in savings due to unfilled retirements and leaves of absence.
In St. James, The Mankato Free Press reports that the previous call for $800,000 in cuts won't be enough and school officials must find another $300,000 to take out of the district. The $800,000 reduction will include more than a dozen staff losses and a 50 percent reduction to the gifted and talented program. The extra $300,000 will depend on budget outcomes at the state Capitol. And the district is planning on at least another $400,000 reduction next spring.
The New Ulm Journal reported that the New Ulm school district is going to cut 2.05 full-time high school teachers in an attempt to conquer a $300,000 deficit. The cuts will be spread among several departments: agriculture, English, music, art, business/computers/keyboarding, family and consumer science, physical education, and science. The district will also cut the budget through an early retirement incentive, a transfer from a trust account, reducing supplies by 10 percent, restructuring technology coordination duties, and transferring communications expenses to another fund.
Teachers are losing jobs and students are getting a worse education for the simple reason that the state won't properly fund education. As lawmakers look to craft a budget for the next two years, now is not the time for more excuses or political gamesmanship. Now is the time for Minnesotans to demand an education system that is getting better instead of falling behind.
Posted in Fiscal Policy | Related Topics: K-12 education Education Funding Minnesota Cities
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Transparency for Windows Users, Door in the Face for Others
The Minnesota Management and Budget office is touting a new tool that will help out information seekers everywhere gain access to information about state spending. "The Transparency and Accountability Project for Minnesota (TAP Minnesota) provides a powerful new way for the public to access information about state government spending."
This exciting and powerful new tool to access information is so powerful and exciting that only Internet Explorer users can handle the tools....or, at least that was the impression the summary site gave me.
I don't immediately dismiss the idea that the new website "provides information about how the state spends money, who does business with the state, and how much is spent for various activities." Any effort to make government more open and transparent is step in the right direction, and this is an ethos that should be running through every facet of our government.
I do wonder if the person charged with typing up the website's description appreciates the irony of having a document begin with a declaration that the new site "opens the books of the state government", and concludes with a bolded "Note: These reports must be viewed using Internet Explorer."
Does this mean the government never intends to make the website accessible via non-IE browsers?
The Political Animal reported:
"Curt Yoakum, legislative and communications director for the Minnesota Management and Budget department, and Joel Ludwigson, director of information management and communication for the department, said the department was aware of the problem during the development but the platform they'd opted to use wasn't all browser-friendly.
The developers used BusinessObjects, a program to which the state already had access and with which developers were already familiar, they said."
Well, that's all find and dandy for the staff who has some familiarity with the software - thus making a good argument for the software's use, but that doesn't really help out me, Jason "the Fire Fox User", the average citizen who takes his civic duties very seriously. And, doesn't run windows.
Sure, a lot of this is semantics, but if you're going to create these tools under the banner of transparency, then more than 57% of web browsers should be able to access the site. It doesn't matter how great the tools are unless people can use them.
Posted in Fiscal Policy | Related Topics: Government Policy Technology Tim Pawlenty
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3/27/09 Today in our Sights
Worthington Daily Globe: Entenza visits Worthington, discusses Minnesota 2020 report
"Ongoing state cuts to local government aid (LGA) hurt the quality of life in rural Minnesota cities, according to more than 90 percent of mayors surveyed for a report released by Minnesota 2020, a nonpartisan, progressive think tank."
Marshall Independent: Rural cities taking the hit
KARE11: Cities look to put a face on Local Government Aid
Echo Press: City cuts deepen - Alexandria trims budget to make up for lost LGA
"Council member Cindy Bigger noted that more cuts are likely since the governor is proposing nearly twice as much of a cut in LGA in 2010. As a result, Alexandria stands to lose about $658,000 next year."
Star tribune: A rally to make a point on state funding
"Ken Zepeda, a St. Paul firefighter, said a loss of 14 percent of the department's budget through possible cuts would mean a drop of one fire company that would prolong response times. Amy Vokal, a Mankato public safety commander, said the loss of staff from police reserves and in funding for training would have jeopardized the recent safe evacuation of 260 residents when a truck spilled liquid ammonia. A Minneapolis community program leader, Sherena Gibbs, told the story of a young man adrift, who was helped by recreation programs and after-school activities and is now on his way to being a member of the State Patrol, and how those programs are in jeopardy."
Minnesota Independent: Firefighters, lawmakers ramp up outrage over Pawlenty's proposed cuts
"Under Gov. Tim Pawlenty's proposed budget, aid to counties and cities would be reduced by $245 million - a 14 percent reduction. Many local governments rely on this funding to help pay for core services such as police, fire and libraries."
Minnesota to get $37.4 million for energy, conservation
"Most of the conservation funding is meant for projects that will save energy at public buildings, including schools and county, city and state government structures, Walsh said. The conservation funding represents Minnesota’s share of Energy Efficiency and Conservation Block Grant (EECBG) program, which is part of $3.2 billion slated to be distributed nationwide following applications to the U.S. Department of Energy."
Posted in Economic Development | Related Topics: Energy Rural Minnesota LGA
How the State Can Grow Jobs
While the federal government has taken swift action on an economic recovery plan, Minnesota's state government is falling flat. Today fellow progressive think tank Growth & Justice presented a few ideas Minnesota's policymakers should latch on to. Their latest report Smart Economic Development for Minnesota by Matt Kane, Policy Fellow for Infrastructure & Economic Development presents smart approaches for economic growth.
The report finds:
- A new sports stadium for the Twin Cities fails the test for smart economic development.
- The state's Job Opportunity Building Zones (JOBZ) program, which offers state and local tax breaks to selected businesses that locate or expand in 10 designated zones throughout Greater Minnesota, falls short of the mark for smart approaches.
- The state should invest in education and skills training to better the lives of Minnesotans and improve the skills and knowledge that they bring to their jobs.
- Public sector investment in transportation, done well, is a smart economic development strategy and one that the State of Minnesota should emphasize, perhaps even more than it does now.
Kudos to our friends over at Growth & Justice for the solid report.
Posted in Economic Development
MN2020 Driving the Debate on LGA
[caption id="attachment_411" align="alignright" width="300" caption="MN2020 Board Chair Matt Entenza with Winona Mayor Jerry Miller"]
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Minnesota 2020 has been pushing the dissatisfaction of Minnesota mayors with the LGA cuts for the last couple days, and we want to thank the news outlets who agreed that this is an important issue worth highlighting.
MN2020 in the Albert Lea Tribune: Group: State's cuts hurting rural Minn.
"36 percent of the city’s budget presently comes from LGA funds. The reductions past, present and anticipated in the future will result in property tax increases and likely public service cuts to cope with the LGA cuts from the state."
MN2020 on WKBT-TV : Rural Communities Taking Brunt of MN State Budget Cuts
"What we need to do is look across the entire state budget and look at all the regions of the state, and everyone is going to have to suffer a little bit, but that no one suffers too much," said Matt Entenza, Board Chair of Minnesota 2020."
MN2020 in Rochester Post Bulletin: Cuts to local government aid have mayors concerned
MN2020 in Bemidji Pioneer: Minnesota 2020 study: LGA cuts hurt quality of life in Minnesota cities
MN2020 in Mankato Free Press: City cuts? tax hikes?: Rural areas could be negatively affected by cuts
"Pawlenty spokesman Alex Carey repeated what has long been the governor’s contention, that cities can reduce spending without cutting their police or fire departments....
...The Minnesota 2020 report counters that per capita city revenues have fallen more rapidly than state revenues while Pawlenty has been in office, according to Office of Management and Budget figures."
MN2020 on KAALtv: Mayors Say No More LGA Cuts
"Cuts to police, fire, salaries and healthcare, those are just some of the things mayor across greater Minnesota say are in jeopardy if cuts to local government aid keep going."
MN2020 on KEYC Mankato: Survey Says LGA Cuts Could Hurt Quality Of Life
"Mankato Mayor John Brady says, "I would just hope the people in the legislature take a hard look at this and put some equity back into how government aid is transmitted around the state." Entenza says it's vital to have the funding for local governments in place to provide economic growth when the recession ends."
Posted in Economic Development | Related Topics: Media LGA
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Rallying for LGA Today
As Minnesota 2020 continues to march across the state showing the findings of our latest report, our friends over at the Coalition of Greater Minnesota Cities are rallying for LGA. (Via ThankLGA.org):
Looking for a change of scenery for your lunch break? Then join hundreds of police officers, firefighters, librarians, parks workers, mayors, and LGA supporters from around the state for an LGA rally on the Capitol steps in St. Paul, March 26, from 12:00 – 12:30 p.m. This is your chance to stand up for the city services you depend on and the affordability of your community.
As members of the Legislature consider ways to deal with the state’ s budget deficit, they need to hear from the public about the programs that matter most. We need as large of a crowd as possible to show them that LGA is what keeps Minnesota communities strong. Don’t forget to tell your friends, bring your co-workers, and make a sign to show support for your library, police force, low property taxes, and other LGA-supported programs!
This is a great effort. Rural Minnesota has been taking a disproportionate share of budget cuts for too long. It's time for some fairness.
Posted in Fiscal Policy | Related Topics: LGA
3/25 Today in our Sights
Check out John Fitzgerald's latest piece at Minnesota 2020: Another Example of How the No Child Left Behind Law is Bogus
"In terms of helping students achieve more in school, the No Child Left Behind (NCLB) law has been a complete failure.
Closing the achievement gap was stated as NCLB's signature legacy. It was going to close the gap by mandating schools test students, disaggregate the results by minority status, then report the scores to the state. If the scores weren't up to snuff, the school was labeled as not achieving "adequate yearly progress."
Sertich bill would expand state's tracking of unemployment statistics
Dateline Minneapolis: Homeowner finds taxes held slave to bonds
"Living in an East Bank townhouse, this tax expert is taxed by seeing his property taxes go not to streets or schools but remaining captured by a development district that's turning 30 years old -- with another 10 likely."
Will Wachovia deal dim Wells Fargo's solar investment?
$40M from stimulus plan will help fund subatomic particle detector in Northeast Minnesota
“Pure scientific research like this expands our understanding of the universe on an academic level. However, in the long run it leads to breakthroughs in other areas that can lead to the development of new technologies,”
Have Duluth home values really gone up?
County public health building bids come in 40% less than estimate
"Olmsted County has had construction bids come in under budget before -- but 40 percent under?
That was the difference between a $12.1 million construction bid and a $20 million county estimate to expand the public health building at 2100 Campus Drive S.E. and replace the community services building at 2116 Campus Drive S.E."
Energized in Elk River over saving energy
"Twelve years ago, the Minnesota Environment Initiative dubbed Elk River the Energy City, choosing the Sherburne County suburb from 30 applicants as a role model for demonstrating efficient and renewable energy products, services and technologies.
But last year, Zehringer, the city's conservation-improvement manager, decided that Elk River was ready "to demonstrate to the nation" that families could save as much as $400 a year in energy bills without compromising lifestyles.
What if St. Paul Ford plant turned out small, efficient diesel pickups?
"Almost completely unknown to North American automotive consumers is the fact that Ford sells a very powerful and highly efficient diesel engine in the Ranger pickup. Unfortunately, this is available only in South America.
Ford could, as it has done a number of times in its history, revolutionize the automotive industry by manufacturing and selling a high-efficiency diesel powered small pickup. My guess is that this diesel-powered Ranger would operate in the 40-plus mpg range. Ford dealerships would be inundated with customers."
Posted in Economic Development | Related Topics: Energy Solar energy Housing Market NCLB