Economic Development Budget
NEW: We added links below to the Governor’s budget recommendations for the primary economic development agencies.
We invite you to contribute your ideas for the state’s Economic Development budget. This forum is a space for you to join the discussion on how the state should prioritize funding for these issues.
(click images to enlarge)
The Governor released his budget recommendations on January 27th. Here are links to his recommendations for the state’s prominent economic development agencies. (There are 11 other boards or agencies that fall under the Economic Development Budget Committee’s jurisdiction that are not listed below):
Dept. of Employment and Economic Development (DEED)
MN Housing Finance Agency (MHFA)
Try to be as specific as possible in your comments so that your suggestions can be fully utilized by the Economic Development Budget Division Committee. Thank you for adding your ideas to the discussion.
You may also share your ideas directly with your local Senator:
Follow this link to look up contact information for your Senator.
Follow this link to look up who represents you.
To learn more about the Senators who serve on the Economic Development Budget Committee, follow this link.
North Saint Paul
January 16th, 2009 at 1:15 pm
The legislature shold allow Canterbury to have slot machine in exchange for an appropriate taxes/revenue sharing. The reasons against this no longer matter when up against a bedget deficit of this magnitude.
Maple Grove
January 25th, 2009 at 1:58 pm
Remember when we had a Movie Production Lobby wing of the Economic Development variety and millions of dollars poured in from films like Grumpy Old Men, etc. Turns out the producers for “Gran Torino” moved to Michigan because the State threw some tax waivers their way. I wonder if they came out ahead on such a deal…or did the production company bring in more millions in spending dollars than the tax break cost in unrecognized tax income. Hmmm…someone should be thinking on that. Some of that “We want your business to come here!!!” might rub off.
How about making any more improvements to the airport to make the business and freight move with ease. A lot has been done - is it making a difference?
Do our roads allow the free flow of goods and people, or do they need expansion to do so?
Our we studying multi-modal options where we have the opportunity to become a shipping hub, to integrate rail, air, and semi-transport into a great regional facility for cross country disbursement?
Mankato
January 26th, 2009 at 10:50 am
Making Unemployment Compensation Pay Dividends in Minnesota
Most technology based businesses depend on teams made up of diverse skills. New product progress and innovation occurs when these teams combine their talents in development efforts. Customer and technology knowledge is slowly built up over time and this experience is used to improve next generation products. Considerable time and money is spent to become state of the art in a business niche.
When it becomes necessary to lay off team members it leaves a company without its knowledge based production ability. It would be a tremendous advantage if slow time could be used to accumulate additional technology expertise.
Current System
Employees are released in soft economic conditions; collect unemployment at a fraction of their salaries, cannot continue to fully participate in the economy and even cut essentials like health care. Hopefully they find work.
Employer is left with broken teams that cannot function well.
Company has lost competitive edge until team rebuilding is complete.
Lose market share due to lost technology expertise.
Tax revenues suffer and infrastructure deteriorates.
Proposal:
Employees are provided an opportunity for continuing education with tuition reimbursement.
Stay on payroll with reduced hours but still qualify for company benefits like health and retirement.
Unemployment is used to keep their pay equal to 40 hours equivalent.
Advantages:
They can continue to contribute to the economy. Employer retains teams and they improve their job skills.
Company is well prepared to exploit market upturns or new emerging market opportunities.
Increased earnings enhance the tax base so that infrastructure is improved, including education.
The State will recover this from the increase in Unemployment Tax that the companies will be paying later in the economic cycle when business revenues are improved.
Minneapolis
January 27th, 2009 at 12:43 am
Please give attention to Dr Paulaha’s “Remortgage America” website and campaign. It puts money in the hands of homeowners; resolves the foreclosure problem; stimulates the economy and particularily housing and jobs! The federal TARP or bailout monies seem to be a saving grace for top overpaid executives and does not appear to even trickle down. Remortgage America puts the funds in homeowners hands where it will do the most efficient and cost effective job, from the bottom up. I have not heard a positive word from Americans about TARP and our government officials cannot give us any sort of favorable promises of economic success. I have a lot more to say…
Mankato
January 27th, 2009 at 6:51 am
Studies and research have shown that allowing Canterbury Downs to install slot machines in addition to cards and live racing would pour a windfall of money into the state’s coffers. We have no objection to the Native American casinos, but they have had a monopoly long enough. This solution makes sense, so why has it not been implemented? It’s a simple fix. Please find out who is blocking this and institute this change for the state’s wellbeing.
Maple Grove
January 28th, 2009 at 8:00 am
I’m a 63 year old tax payer who has never received public assistance no unemployment. As the main support of my family and a realtor I am having desperate times. I have no health insurance and I’m struggling to pay bills yet Pawlenty is playing politics as usual with tax cuts for business instead of help for the tax payers. He seems to be more concerned with his political standing and future with the Republican party than with the people he is supposed to be serving. I don’t recognize this state nor country as the place I thought I lived while growing up in Minnesota. It’s time our “public servants” begin looking after the public.
Mankato
January 28th, 2009 at 11:01 am
I believe Minnesota must start taxing the rich, in addition to other revenue sources. Minnesota schools, which used to be the best in the nation are now just mediocre. The answer to attracting business is increasing standard of living, schools being an important measure of that. Also, Minnesota must do a better job caring for the poor.
The rich have skated for many years now, all under the guise that Minnesota’s economy would prosper. Well, quite the opposite has happened. It is selfishness and greed that has got us all in this fix! I believe the rich must pay for the State’s budget deficits as a lesson for the past selfishness and greed. Also, as a incentive to ensure this depression ends ASAP and that they best safeguard Minnesota’s financial wellbeing by taking care of everyone.
We need to restore a more progressive tax system and stop our single mindedly selfish governor from forcing his way into legislation.56003
Saint Paul
January 28th, 2009 at 12:22 pm
1. Perhaps it would be a good idea to have all businesses that do business with the state to have a tiered salary system so that the top pay of a CEO is limited to 10x the lowest paid employee. All bonuses are spread company-wide.
2. Businesses that are expanding in Minnesota should get tax breaks for the health insurance programs that they provide employees. They should also have tax breaks for buying equipment that is locally produced and manufactured.
3. Provide vouchers for people to get discounts when buying big ticket items. This can be paid for by banks and manufacturers giving the state discount in loans or fleet vehicles, etc.
In essence, we need to stimulate purchases, job creation, expand health care, and increase wages to expand a middle income population so that revenue for the state can come back in from the taxes on purchases and income.
Cloquet
January 29th, 2009 at 10:11 am
The creation of jobs is the criteria for this part of the budget - it should be geared toward living wage jobs for the most part.
Minneapolis
January 29th, 2009 at 9:43 pm
We need to focus on the middle class again–it has been the strength of the American economy. To assure a strong middle class, we need to have employers provide a fair wage and health insurance benefits to all their employees–it should not be an elitist option.
We also need to stop exporting jobs overseas. U.S. companies still look to U.S. consumerss to purchase their goods, but do not want to provide them the economic means to do so. It is short-sighted; it doesn’t provide a good quality of life for our citizens; and it hurts our economy. Enabling exorbitant incomes for a few and meager incomes for many has proved to be very ineffective for insuring economic growth and stability. We need leadership that will promote a sense of community and provide services and incentives for the middle class.
Jackson
February 4th, 2009 at 11:22 pm
When I think of Economic Development I think of manufacturing, retail and service type businesses. Are we doing a good job to attract and retain business in Minnesota? Why do I hear so many stories of businesses that move out of state to South Dakota, North Dakota, and even overseas? It has to cost a lot of money to make that kind move. Why are they moving or not coming here in the first place?
It seems many assume that because there is a business that business can afford a higher cost of everything. For example, a business phone line cost much more than residential, even if there are multiple lines that are not used on a daily basis. This being the case in a lodging business in a smaller community.
What about all the state mandates in recent years? Mandates just keep popping up all the time. The cost of enforcing these has to be paid by someone. That is passed onto business and taxpayers. Are all of these mandates absolutely necessary?
Businesses should receive some credit for buying local, buying Minnesota.
If it is financially healthy to do business in Minnesota, businesses would be able to provide good paying jobs for the majority of us, plus attract new residents. We could in turn buy or build a home locally. Unless there are too many mandates that make it unaffordable to do so.
Eagan
February 11th, 2009 at 8:01 am
I think the state of MN should allow for full service casinos, such as those operated by the native american tribes. This would create a tremendous amount of additional tax dollars that will go to the state. I understand this will require some changes in the laws, as only the tribes are allowed to operate full scale casinos.
Woodbury
February 13th, 2009 at 12:23 pm
I am a small plumbing business owner in our 20th year in business. Our sales were in the 1.5 mil range. In the current economic conditions, companies such as ours seem to be suffering, and being overlooked. Statistics show small business employs 80% of the work force. We are small established companies with fixed overhead that, combined with the building down turn, and increasing amounts of bad debt, are struggling to stay alive.
At our peak we employed 11 individuals, and hired additional sub contractors from other trades as needed. We now employ five.
We have shown consistent growth since starting business. We continued to invest back into our business, employees and equipment. We have always run a tight business with very little waste. Now we are forced to cut every cost possible.
I am very frustrated with the government response to this crisis. The so called bail out seems to be all about big business that continue to waste money and abuse the system. It also appears as though the money spent has had little effect on the economy.
According to the Department of Labor and Industry, the current number of unemployed people that pertain to the building trades or small business in general, is far greater than all of big business combined.
My solution is this; from the government bank funding create a “Small Business Lending Fund” which would provide government backed low interest loans for a fixed period of time. Set interest rates at 3-4% for up to 5 years, then at the end of the term raise the rate on any unpaid balance to 7% -8% giving the business incentive to obtain conventional financing. This is good for the government and the banks. This way when things are back to somewhat normal, the business is responsible to fund their own loan and the government is paid back. Government backing would motivate the banks to lend.
This funding would relieve the pressure while allowing me, and many like me, to keep our current business operating, by investing in additional marketing, education, and new technology, such as renewable energy. We would then keep people employed, emerging better than ever, and set for future growth. The domino effect from this spending would occur overnight
I would also include certain loan requirements. One is that all recipients spend a percentage on energy efficiency; however that may pertain to your business. Another is that all recipients be required to perform community volunteer service, thus reducing the community budgets. These requirements would reduce our dependency on foreign oil and promote a sense of community. Both of which are desperately needed.
Cash flow boosts for small business will have an immediate effect on the economy, and will benefit a large diverse sector.
Feel free to contact me. I would be happy to get involved in this project any way I can.
Austin
February 15th, 2009 at 3:21 pm
My opinion is to allow state or privately run casinos in Minnesota. Look at the one just three miles from Mn border. Those funds could have been right here in Mn. If slots are opened up, please do not just allow non-profit agencies to have them as that will drive the privately owned bars and restaurants out of business. We don’t need more ways to close businesses. Its all or nothing. One of your counter parts told me that Mn would not allow public or privately owned casinos as that would be like “breaking another treaty” with Amercian Indians. Since when was this considered a treaty? You cannot regulate peoples choice of entertainment, so why not make some money for the state coffers
Golden valley
February 16th, 2009 at 8:52 am
My husband lost his job after 41 years in the work force. My son, a new college grad also lost his job and is unemployed.
Please remember when you consider adding sales tax to food that we are barely scraping by on my income. I cannot carry more tax burden - in any form. I can’t afford my property tax, sales tax, etc.
The legislature needs to treat their budget the way WE have to treat ours. We don’t have the money, so we don’t spend it.
Please do not make our finances tighter than they already are. Stop spending and stop raising taxes.
Red Lake
February 20th, 2009 at 10:19 am
Casinos have a price - and they may not be as lucrative as you believe. How can “gambling” be justified for STATE activity - do you want your constituents to spend their limited income so your Government can eliminate their deficit? Instead of focusing on “AMERICAN INDIANS HAVE THEIR CASINOS” you may want to ask why. Creation of employment - The entire State needs creative employment opportunities. The entire State needs to figure out how to get JOBS - pull JOBS into the State - fund employment development - create an emergency employment development plan - get the State dollars to stay in the State. Utilize the State resources - our people. When you have citizens in the State that are working very hard to secure employment for others - recognize their contributions. If others continue to attack American Indian casinos, they just may discontinuing employing people that are not members of their Tribe or start giving them only entry level pay positions.
It’s really sad to hear about people being unemployed and the high costs of every thing that is to them overwhelming.
I wish I had a better solution - target areas with the highest unemployment rates and provide jobs.
COLD SPRING
February 21st, 2009 at 1:34 pm
I DISAGREE WITH CONNIE LEE BERG’S ARTICLE THAT “CASINOS MAY NOT BE AS LUCRATIVE AS YOU BELIEVE.” IF THAT IS TRUE WHY WOULD THE PRESENT AMERICAN INDIAN CASINOS INVEST OVER 250 MILLION DOLLARS IN EXPANSION WITHIN THE LAST FIVE YEARS, AND WHY IS A NEW CASINO GOING TO BE BUILT BETWEEN BEMIDJI AND YOUR BACK YARD, RED LAKE. SOUNDS LUCRATIVE TO ME.
I WOULD SUGGEST PUTTING SLOT MACHINES IN CANTERBURY RACE TRACK AND ALLOWING A CASINO IN THE METRO AREA. THIS WOULD BRING IN OVER 300 MILLION DOLLARS EVERY YEAR, ADD WELL OVER 1000 TAX PAYING JOBS, HELP THE CONSTRUCTION AND VENDING INDUSTRY, AND IT WOULD BE “TOTALLY SMOKE FREE” WHICH WOULD HELP THE HEALTH INDUSTRY.
LEGISLATORS, LISTEN TO THE OVERWHELMING MAJORITY OF MINNESOTANS WHO THINK THE STATE SHOULD BE RECEIVING SOME REVENUE FROM THE CASINO BUSINESS OR, IF YOU DON’T BELIEVE IT, LET THE PEOPLE VOTE ON THE IDEA.
Pipestone
February 22nd, 2009 at 12:05 pm
SBDC’s provide free counseling at a cost to the state’s taxpayers. Those using business counseling services provided by SBDC’s should pay a fee that recovers at least 50% of the cost of the services provided.
Sandstone
February 23rd, 2009 at 9:29 pm
Comments regarding the State of Minnesota’s budget
First and foremost, there are no quick easy answers to the financial situation of our state. However, we must recognize some basic, common, too often misunderstood facts and principles. Not intending to assign any priorities, some controlling factors are;
A. There can be no sacred cows.
B. We cannot lose anything we presently do not have.
C. This is not a Democrat or Republican, urban or rural problem.
D. It is a statewide problem which includes every aspect of our society including each and every one of us, regardless of age, race sex, religious or political conviction.
E. We must clearly differentiate and clearly define what we are saying when we use the terms, “cut and cuts”, and “reduced increases”.
F. It will require sacrifice and acceptance of responsibility by each and every one of us to learn to live within our means. This applies to our personal lives as well as in the exercising our responsibilities at work, in government or industry, and, if you will, at play.
For discussion purposes, let’s start with a wage freeze at the 1 January 2009 level. This is primarily for all state and local government workers. Review paid time off and fringe benefits. Reduce overtime by rescheduling when and where possible. Look for duplication of efforts not only within an organization or agency but by more than one agency and or organization. For example, presently the DNR, EPA, PCA, BWSR, SWCD’s, all have jurisdiction and/or functional responsibilities pertaining to wetlands within the state of Minnesota, along with the overall responsibilities of the Army Corps of Engineers. Restrict expansions of objectives and project to areas that can be financed with cost savings resulting from improved management and oversight techniques. Initiate cost savings programs that reward employees with financial bonuses for their cost saving ideas. Cap salaries once a freeze is lifted. For those receiving clothing assistance, utilize the cost savings by taking advantage of the various thrift shops and Good Will stores. Review the authorized types of foods allowed to be purchased with food stamps, removing such foods as Lobster, fresh salmon, alcoholic beverages etc.
I realize I am not giving any specific area to focus on. I do not feel a realistic attempt to resolve the financial status of the state of Minnesota can be accomplished by focusing on any one specific area. Nor can any specific area be omitted from review.
I thank you for the opportunity to express my opinion in this very important matter for everyone in our great state of Minnesota
Sincerely;
Leland Magnuson
41935 Duxbury Road
Sandstone MN 55072
Phone 320 245 2868
Bloomington
February 23rd, 2009 at 11:40 pm
A racino at Canterbury Park or a state run casino would generate hundreds of millions in revenue for the state and at the same time create new jobs and divert profits to the taxpayers and citizens of Minnesota. After all we are the ones who make those profits possible. It really is a shame that this wasnt done years ago.
Eagan
February 24th, 2009 at 10:51 am
There are only good reasons to have a racino at Canterbury Park and no bad ones:
1. It means an infusion of millions of dollars annually to the State treasury with not a single dime of investment by the State. The City of Shakopee and Scott County also benefit.
2. It means an opportunity to ensure the viability of the horseracing sport and agribusiness in our State, not only through the success of Canterbury, but by supporting Minnesota breeders, feed farmers, truckers, veterinarians, concessions, landscape and maintenance workers – more than 2,000 jobs. And these employees pay taxes in Minneosta.
3. The argument that slot machines at Canterbury will increase gambling addiction is based on a false premise that mere availability automatically creates addiction. This is no more true than saying that one more liquor store in Eagan is going to increase the incidence of alcoholism all over the State. As a psychologist, I can tell you that people who are addicted to playing slot machines will play wherever they find machines and already have 17 casinos statewide. They will not make it a point to come to Canterbury when they can play closer to home.
4. The argument that slot machines at Canterbury means competition for Minnesota casinos is based on the false premise that people will play at Canterbury rather than at a local casino. But people in Duluth or Alexandria are not going to come to Canterbury to play slot machines.
5. The argument that putting slot machines at Canterbury means that there will then be slot machines in every bar, restaurant, the airport, etc., is based on the false premise that the legislature has no control over the placement of machines. To make machines legal at Canterbury does not obligate the State legislature to put them anywhere else.
6. The argument that the State should not be supporting “more” gambling is completely untenable as long as the State operates a lottery.
7. Canterbury has never had a level playing field for its survival or growth, since none of the Indian-owned casinos pay taxes to the State. Without slot machines nor an expandable card club nor off-track betting, the track’s market has been kept small, and its economic base in a tough-to-grow stance. The legislature has historically loved to receive the millions of golden eggs, but keeps trying to kill the goose.
8. Canterbury Park has been a fine corporate neighbor, contributing millions of dollars through its charitable fund, the “Minnesota Million Fund,” to good causes, particularly those involved in animal rescue and humane education for children.
Bloomington
February 24th, 2009 at 8:36 pm
I am an employee/owner in a professional service business. Companies like mine compete with other states for clients. Please DO NOT increase the state sales tax to include professional services, as that would put these companies at a competitive disadvantage and further depress the economy of the State of MN.
Bloomington
February 24th, 2009 at 8:40 pm
Please support “racino” legislation. We are not naive. We understand the makeup of this legislature and the influence of an opposition gaming lobby. However, now is the time to stand with the 56-70% of citizens polled who support this legislation.
Oakdale
March 9th, 2009 at 9:28 am
1. We should NOT have taxpayers pay for retired state employees retirement plan; if their retirement investment fund lost money like all of us have, then their checks get smaller not guaranteed by us the taxpayer.
2. Smoking should be brought back to the bars, (I am not a smoker) smoking should not be in restaurants, but should be allowed in a bar if the bar owners wants, people would spend a lot more money if they can feel relaxed and have fun.
3. Stop spending valuable time trying to run our lifes and come up with solutions to the problems we have. We do not need more controlling laws in our personal lifes.
4. It has been so many generations since the Indians lost; we need to start taxing thier businesses, they need to begin paying their share.
5. We could save a very large amount of money, if we deported any non-mn from our jails; the majority of people in our prisons/jails are illegal or non-residant - this is a huge un-nessary burdon to all of us.
6. Any work done on MN land should be done by a US citizen. We have four presidents at tough times in our past after the vetnam war, WWII, the great depression; these presidents deported every illegal so it would make jobs for the people of these united state and the men when they came back from war.
7. If you have not been a MN resident for at least 10 years and paying state taxes you should not be eligible for any kind of help; go back to your own state. MN is one of the most generious states - we need to stop and start taking care of our own backyard.
Thank you for your time; I hope you individuals that are supposed to be representing us can take the time to read these comments people are sending in and actually act on them; there are a lot of good ideas.
I guess it comes down to: stop trying to control the little things in our lifes and start being responsible and taking care of us and by taking care of us does not mean to vote anything for yourselfs for doing a good job; you don’t get praised for doing a good job you are already getting paid for it, let’s start earning some of the this money us tax payers pay you.
Austin
March 17th, 2009 at 7:20 pm
I too think that it is time to establish casino gambling as a source of revenue for the state. Presently, the casino just over the Iowa border on I35 is the recipient of plentiful Minnesota dollars, and Iowa students, civic organizations and others are benefitting. Our students need scholarships too! A casino located in the Owatonna vicinity would keep Minnesota dollars home,yet would have minimal impact on the casinos in Shakopee and Red Wing.
I also believe that affordable universal health care could be an incredible economic development tool. It is my feeling that employer provided health insurance should be phased out and an income based health care tax phased in. Employers could then add employees when needed, without worrying about
huge benefit costs. This action would also eliminate the incentive to limit employees to part time, or contract to avoid paying benefits. Individuals could then start businesses without worrying that health costs would destroy them. If they were sucessful, their health care tax would increase with their income. It would be the job of government to seek ways to limit the growth of health care costs, just as it is now.