More Capitol Conservative Distractions

By John Van Hecke, March 24, 2009 at 1:24 pm

There's nothing like a little nationalistic chest-beating to distract us from Minnesota's budget policy debate. At least, that's what conservative State Senator Ray Vandeveer and conservative State Representative Bob Dettmer hope.

Vandeveer and Dettmer have introduced a bill prohibiting state funds from being used for athletic scholarships for non-American state college and university students.

Yes, you read that correctly.

Only American athletes would be eligible for athletic scholarships. Now, it's a goofy idea but if Vandeveer and Dettmer proposed restricting athletic scholarships to Minnesotans, I could understand the proposal at least a bit better. Minnesota tax dollars underwrite all public higher education. Minnesotans have a reasonable expectation that those dollars substantively contribute to our state's success and well-being.

So, why aren't Vandeveer and Dettmer restricting scholarships to Minnesota athletes? Why the foreign athlete bashing?

Let's be clear. This is a conservative distraction from the systematic, long-term disinvestment in public higher education institutions. It has nothing to do with foreign athletes, or any athlete for that matter, and everything to do with attacking public institutions.

Posted in Education | Related Topics: Higher Education 

3/24/09: Today in Our Sights

By Chris Shields, March 24, 2009 at 11:39 am






Posted in Economic Development | Related Topics: Minnesota Counties  Technology  Working / Middle Class Issues  LGA 

3/23 Today in our Sights

By Jason Hitchcock, March 23, 2009 at 2:54 pm

Economist Ed Lotterman praises Minnesota 2020 Housing Report, saying the ideas "merit serious consideration."

"The proposal calls for a pilot project in Ramsey and other Minnesota counties that would have two phases. The first would try to stabilize housing values with a five-year down payment guarantee. This would facilitate the second phase that would restructure existing delinquent mortgages."

Minnesota home builders employ new tactics in recession

It's an exciting time for the green energy movement right now. Turbines will soon churn in 11 Minnesota cities

"Recycled turbines that turn renewable wind energy into electricity are expected to begin appearing this summer in Anoka, Buffalo, North St. Paul and eight other Minnesota cities that are part of a power agency."

It's that time of year again. Lawmakers are debating this year's omnibus liquor bill
"The Senate Commerce and Consumer Protection Committee on Thursday heard 14 bills, including one that spotlights a turf battle between state lawmakers and the University of Minnesota Board of Regents concerning serving alcohol at the new Golden Gophers football stadium on the Minneapolis campus."

Two conservative Minnesota lawmakers have decided that the most pressing concern at this moment is foreign college athletes. Yes, you read that correctly,  check out John Van Hecke's read of the situation here tomorrow: hint, it's a petty distraction from the real issues.
"A pair of Minnesota lawmakers have introduced legislation to keep foreign athletes from getting state scholarships to play on Minnesota college or university teams."

Mankato Progress: Retail up, down
"Several retail stores have been lost and new construction saw a marked decline, but activity has been brisk in many areas. In fact, as measured by the city of Mankato sales tax, retail sales were up almost 3 percent in 2008, a stark contrast from the national downturn."

In a fix: Fill potholes, empty out wallets
"For cash-strapped Minnesota residents, street upgrades are a low priority. In metro-area suburbs, they're letting local officials know it."

Minn. schools compete for students
"Students who change districts through open enrollment take their state aid with them. That ranges from $3,135 for kindergartners to $6,660 for high school students.
More than 30,000 Minnesota students participated in open enrollment last year. That means millions of dollars are up for grabs."

Posted in Economic Development | Related Topics: Communication  Media  Housing Market  Wind Energy  Sustainability 

Help Schools Focus on What’s Important

By John Fitzgerald, March 23, 2009 at 12:42 pm

An editorial in the Star Tribune states that school districts should consolidate and streamline in order to save costs in a tough economy. The editors say that the state has gone from having more than 1,000 districts to the current 340 districts to save money, and perhaps something similar should be done today.

The editorial points out several efforts in the legislature that would encourage districts to merge, or set up clearinghouses to share services.

These are all bonny ideas, but they miss the point. The point of education isn't to make it easier for lawmakers to balance a budget, the point is to educate our children. Minnesotans should stand up as one and shout toward St. Paul "We don't care how much it costs, provide an education for EVERY child."

Worrying about consolidation and clearinghouses is the purest form of being penny wise and pound foolish: Save a penny today, change our name to "Land Of 10,000 Morons" tomorrow. We should decide what will produce the best education results, then fund it.

Posted in Education | Related Topics: K-12 education  Media 

Major MN2020 Report: Stabilizing Minnesota’s Housing Market

By Chris Shields, March 22, 2009 at 12:11 pm

The mortgage crisis, the major cause of the global economic crisis.  Despite all the great work done at the national level, there still hasn't been any solution to stop the freefall of housing prices. Minnesota 2020 has a solution that can work both here and nationally.  Today we're releasing Stopping the Freefall: Stabilizing Minnesota's Housing Market.

Stopping the Freefall: Stabilizing Minnesota's Housing Market

Publish at Scribd or explore others: Magazines Periodicals & Report farm crisis minnesota 2020

The report is a collaboration between Minnesota 2020 Fellow Lee Egerstrom and the person primarily responsible for turning the tide of the 1980's farm crisis; Larry Buegler, the Retired President of Farm Credit Bank of St. Paul (now Agribank).

According to St. Paul Economist and Pioneer Press columnist Ed Lotterman in today's paper:
There are a lot of complexities people can argue about. But it is a solid proposal that Minnesotans and their Legislature should examine.

Full press release after the jump.

NEW PROGRAM CAN STOP MINNESOTA'S HOUSING FREE FALL, SAYS LOCAL THINK TANK

Program Would Protect Homebuyers' Down Payment for Five Years

(St. Paul, MN)- Minnesota should consider starting a new program to stop the housing market free fall and get local housing markets moving again, according to nonprofit think tank Minnesota 2020. The program would guarantee new homebuyers' down payments for five years even if the market continues to decline.

"This is an insurance policy for homebuyers," said Larry Buegler, co-author of the report and retired president of the Farm Credit Bank of St. Paul. "Our program ensures that Minnesotans won't lose a dime of their down payments. People who want to buy a home can once again feel that their investment is protected."

Since this program jump starts home purchasing again, it's likely to stabilize prices and return the housing market to a normal rate of growth, according to program architects. This will create a floor under home values to protect down payments and home equity. In turn, that floor will allow borrowers and lenders to restructure existing but troubled loans knowing that equity in the property is protected.

Modeled after a program that helped to end the farm crisis in Minnesota and the country in 1987, The Minnesota Home Values Guarantee Program will benefit both lenders and consumers and stabilize prices. According to report authors, federal efforts to make funds available for lenders and borrowers to rework troubled mortgages are not likely to succeed if property values continue to fall.

"Many economists are telling us that we can't get out of this mess until the housing market is stabilized and values stop declining," said Buegler. "When we implemented the Land Values Guarantee Program in 1987 to address the farm crisis, we began to see appreciation in land values immediately. The Minnesota Home Values Guarantee Program would have the same impact on the housing market." Buegler was the banker behind the Land Values Guarantee Program, which was launched by the Farm Credit Bank to stabilize farm values and to help families dangerously close to defaulting on farmland loans. That program was quickly adopted nationwide because of its immediate impact on the farm crisis.

Minnesota 2020 proposes a Minnesota Home Values Guarantee Pilot Program in Ramsey County and approximately six greater Minnesota counties (to be determined) in order to show how quickly this program can begin to stabilize prices. The report's authors expect the pilot program to be so successful that it's adopted statewide soon after it's implemented.

"We feel confident that a Guarantee program can turn the housing market around in Minnesota, but it doesn't need to be limited to our state. This program can work across the country," said Lee Egerstrom, co-author of the report and Minnesota 2020 fellow. "When credit markets have dried up and federal dollars aren't reaching homebuyers on the ground, it's time to take a front porch approach to the problem."

The report envisions a two-phase Home Values Guarantee Pilot Program to test the waters. In the first phase, anyone buying a home as a primary residence in a pilot area could have their down payment protected, or guaranteed, for five years. If, after five years, the property's value had declined, the homeowner could ask for a refund on the down payment.

"When we set up the Land Values Guarantee Program, the bank set aside $25 million to cover those guarantees," said Buegler. "We never touched a dime of that money. Once the program was in place, prices stabilized and values began to increase. Property owners would have been crazy to turn the land over to the bank five years later because it was worth more than they had paid."

Once home values begin to stabilize, the second phase will accelerate the restructuring of delinquent mortgages by lenders because values will begin to increase across the board making those loans easier to refinance.

"The need for this program is immense," said Matt Entenza, board chair, Minnesota 2020. "Until the housing market is stabilized, our state's economy will continue to be on very shaky ground. We urge state legislators to implement a pilot program in Minnesota-we feel confident that we'll see results almost immediately."

The report finds the average Twin Cities home has lost about $80,000 in equity in the past two years. An estimated 22 federal programs have now committed more than $7.7 trillion to halt the financial meltdown and restore lenders and credit markets. Little of this has trickled down to help borrowers and lenders restructure troubled mortgages. Minneapolis-based HousingLink warned in a Feb. 26 report on Minnesota foreclosure activity that current economic conditions make forecasting 2009 foreclosures impossible, noting that 2008 saw a 33 percent increase over 2007.

Posted in Economic Development | Related Topics: Economic Growth  Housing Market 

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Governor’s Office “spinning” Out of Control

By Kyle Edwards, March 20, 2009 at 2:16 pm

Reported in a Pioneer Press story, House leaders came out with their budget solution on Thursday. It differs from Governor Tim Pawlenty's in more than a few important ways. One of the main sources of tension between the two is the House proposal utilizes tax increases, along with budget cuts, to raise revenue, retain government services, and ensure the budget will be balanced beyond the current biennium.

To make up for the lack of increased revenue, Pawlenty uses more one time money to make the budget look balanced and doesn't provide for a balanced budget beyond 2011. He also proposes massive cuts in health care that affect some of the most marginalized populations in Minnesota, including the elderly, rural populations, and working Minnesotans who cannot afford private health insurance.

Brian McClung, Pawlenty's spokesman, offered the governor's opinion on the DFL's budget:

"From the governor's perspective, government shouldn't be piling on when people are already concerned about paying the bills and making ends meet."

Instead, Pawlenty proposes that government should cut programs which aid those with the gravest financial problems. These spin doctors are offering more of the failed conservative solutions which brought these problems to Minnesota in the first place.

The House Taxes Committee, chaired by state Rep. Ann Lenczewski, while eliminating tax breaks and raising taxes on the wealthiest Minnesotans, would cut income taxes for people with modest incomes and give businesses long-sought tax changes. Lenczewski seems to think that those with modest incomes are having more difficulty making ends meet than those with the highest incomes.

It seems the debate comes down to priorities; either keep taxes at their current levels for the wealthiest citizens in our community or preserve health insurance for those who need it most.

Posted in Fiscal Policy | Related Topics: State Budget  Tim Pawlenty 

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3/20 Today in our Sights

By Jason Hitchcock, March 20, 2009 at 12:09 pm



"McKnight, whose latest grant will be spread over five years, is joining with the William and Flora Hewlett Foundation and the David and Lucile Packard Foundation in a philanthropic commitment of over $1 billion to combat climate change."






House Democrats offered a budget plan Thursday that would solve Minnesota's projected $4.6 billion deficit in three relatively equal ways - budget cuts, new taxes and delayed spending







As the state continues to post monthly job losses, at least one entity is adding employees: Minnesota's Workforce Centers, whose mission is to help all those laid-off workers, now finds itself in need of more help.


Posted in Economic Development | Related Topics: Economic Growth  Communication  State Budget  Sustainability 

Teacher Compensation Still Lags

By John Fitzgerald, March 20, 2009 at 11:02 am

class

A recent article in the Anoka County Union discusses how the St. Francis school district uses money from Gov. Tim Pawlenty's teacher merit pay scheme, Q Comp, not for bonuses for meritorious service but to supplement how much the district can offer new teachers.

As stated in a story posted at Minnesota 2020,

...the average starting teacher salary in Minnesota is $33,018 -- 25th in the nation. As quoted in the County News: "Before Q Comp, a starting teacher in the district earned about $30,000. Now they can earn $39,270."

The next paragraph is illustrative as well:
"The goal behind increasing the starting wage by 20 percent 'was to hire who we wanted to hire,' he said."

"He" is Randy Keillor, district Q Comp coordinator.

This would seem to indicate that without the additional money, St. Francis would have to hire people they normally would not want to hire. This means that they don't think they have enough money to hire new teachers they believe will best educate their students.

St. Francis' actions prove several things: Merit pay is baloney. Teachers don't need "bonuses" to do their jobs well, they just need to be paid a fair salary. Starting teachers don't make enough money. Districts like St. Francis have to rob Peter to pay Paul just to attract teachers "we want to hire."

Bravo to St. Francis for plugging a hole with funds from a program that's not really necessary. It's just too bad they have to plug that hole in the first place.

Just because my interest was piqued, I went to CNBC and looked at the top 10 bachelor's degrees with highest paid starting salaries. Teaching is not on the list.



Posted in Education | Related Topics: K-12 education  Teachers 

Duluth Principal Speaks Out & Conservatives Called Out at MN2020.org

By Chris Shields, March 20, 2009 at 9:29 am

mn2020_logo_wurl_rgb



Two great pieces up today at MN2020.org.

First, John Van Hecke's weekly Journal tackles the politics of distraction during tough budget times.

Second, Duluth East High School principal Laurie Knapp shows how "No Child Left Behind" sets students up for failure.

Posted in Fiscal Policy | Related Topics: State Budget  NCLB 

House Budget Targets: Cuts, Priorities, Progressive Revenue, a Good Start

By Chris Shields, March 19, 2009 at 3:51 pm

When times are tough, you keep all options on the table. You reduce spending, make priorities, bring more money in, and plan for the future.  That's exactly what leaders in the Minnesota House did today as they announced their budget targets.





The House budget targets preserve funding for early childhood education, K-12 schools, and colleges.  Their plan prioritizes health care, minimizes cuts to communities, and acknowledges the need for new, progressive revenue.



UPDATE: Here are details from House Leadership:

House Budget Targets
Publish at Scribd or explore others: Research budget 2009

A $6.4 billion budget deficit requires tough choices.  The House plan focuses on what really matters and makes the balanced choice of mixing both cuts and revenue increases.  This is a great start and roadmap to move Minnesota forward.

Posted in Fiscal Policy | Related Topics: Local Government  Minnesota Legislature  State Budget 

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