For more information contact: Charlie Vander Aarde 651-297-8406
(ST. PAUL) – The Minnesota House of Representatives today passed a bill cutting the state’s jobs and economic development budget using a variety of spending reductions and one-time fund transfers.
State Representative Tim Mahoney (DFL-St. Paul), the DFL lead on the jobs and economic development committee responded to the bill. “This week Republicans will vote to give tens of thousands of pink slips to Minnesota workers," said Mahoney.
The bill today is projected to cut at least 750 jobs. “Today, House Republicans answered a simple question. How do we not invest in our people? These are backward priorities for a party that ran on creating jobs.”
The jobs and economic development committee was given a target of cutting 58% from the 2010-11 budget. “The Republicans made up most of the cuts by using financial shenanigans,” said Mahoney. “They used a one-time fix of $60 million. This money belongs to others.” The bill includes a provision to raid $60 million from the Douglas J. Johnson Economic Protection Trust Fund at the IRRRB. “$60 million in local property taxes belongs to the Iron Range,” said Mahoney. “$16 million comes from Unemployment Insurance fines and penalties.”
The bill cuts job training and economic development programs housed in DEED including the state trade office, Job Skills Partnership, Workforce Development, and Business and Community Development.
“Traditionally, this bill has promoted jobs, supported businesses and invested in our workforce,” explained Mahoney. “This Republican bill hurts workers and employers. It cuts successful programs that prepare our state for the future. This is the opposite direction of where Minnesota needs to go.”
States such as Ohio, Massachusetts and North Carolina are investing tens of thousands of dollars in the high tech industry and the biosciences. “The University of Minnesota is the economic engine of the state,” said Mahoney. “Minnesota can capitalize on the investments we have already made in research and development at the U. This bill gives the signal to our best and brightest that Minnesota is closed for business and they should set up shop outside our borders.”
Mahoney pledged to continue to fight for Minnesota workers and Minnesota jobs. “We can’t afford to fail in developing Minnesota’s workers and growing Minnesota’s businesses,” said Mahoney. “The DFL will continue to support workers and promote a prosperous business environment that allows employers to grow and succeed.”
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