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State Representative Kurt Zellers
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-5502
For more information contact: Austin Bleess 651-296-5529
OP/ED COLUMN
LEGISLATIVE UPDATE: JOBS AND ECONOMIC DEVELOPMENT
Fellow District 32B residents,
This year over 2,500 bills were authored by members of the legislature. Some of these bills become laws, but many do not. In an effort to wade through all of these bills and give you an idea of what became law and what was vetoed by the Governor, I have started a series of email updates on the major issue areas. Some of these areas will include education, environment, transportation, healthcare, taxes, and public safety, just to name a few. As we go through this series I would encourage you to contact me with any questions you might have about these topics. And please contact me if you have a question or suggestion for a future email update.
This week’s email update is a recap of action taken to encourage business, employment, and economic development.
Redevelopment Grants
One great area of economic development needs is in grants for businesses and communities to attract private investment and create quality jobs. These grants, called Redevelopment Grants, were funded with $2 million from the state as Governor Pawlenty requested. Many cities and towns throughout Minnesota will benefit from this, and it will spur the economy of Minnesota as a whole.
This great program has been a large success in our state. Since 1998, when the program first started, $35 million has been awarded by the state to various development authorities, such as cities, counties, port authorities, housing and redevelopment authorities, and economic development authorities. These grants have created nearly 8,000 jobs in Minnesota and retained over 5,250 jobs. Because of this investment into Minnesota, the state has leveraged $810 million. This program is well worth the investment.
Minnesota tourism
A large part of Minnesota business is tourism. This year the legislature funded Explore Minnesota Tourism with additional resources for matching grants. The legislature also created initiatives to maximize private sector involvement in tourism that includes match requirements of $3 from non state funds for each $1 of state funds.
Tourism is a $10 billion industry in Minnesota, and is a key sector of our economy. The leisure and hospitality industry, a major provider of tourism services, employs more than 230,000 Minnesotans, and employment in this sector is projected to grow by more than 19 percent this decade.
The Minnesota Investment Fund (MIF)
The Minnesota Investment Fund (MIF) received $5 million this past session. The MIF is a great program for Minnesota as it helps cities and counties improve and strengthen their business and economic base by providing financing for business expansion and relocations. This helps cities and counties to attract good paying jobs for to their areas. These good paying jobs equates to more money being spent in the community helping out the local tax base.
MIF has helped numerous businesses and has produced great results across the state. In the 2004 fiscal year, which for Minnesota is from July 1 – June 30, $3.1 million was awarded to various cities, counties, and townships with 540 jobs created or retained. In fiscal year 2006 those numbers climbed even further. The state awarded $5.8 million in grants and saw over 1,260 jobs created or retained in the state. This is great for our economy. If you would like more information on this program, or to see if your business could be eligible for a grant check out their website at: http://www.deed.state.mn.us/programs/mninvestfund.htm
Taxing Jobs Out of Minnesota
In addition to these few pieces of legislation which the Legislature passed, House Republicans also kept the tax rate low. It has been estimated that over 60% of the people, who would have been affected by raising the top bracket of the income tax, were entrepreneurs. These people provide jobs to our communities and their businesses brighten Main Streets all across our state. Fighting for the small business people, House Republicans have defeated the message the Democrat majority wanted to send say to businesses “We don’t want you here.”
Helpful Links to Your State of Minnesota Services
If any of the programs you see here interest you and you’re wondering how to take advantage of them here is a list of ways you can get in touch with each various agency:
Minnesota Department of Employment and Economic Development
This agency has information on how to start a business, the Minnesota JOBZ Program and a lot of other great information.
Website: www.deed.state.mn.us
Phone: 651-259-7114
Minnesota Department Of Commerce
The Department of Commerce focuses on commercial and financial transactions and reliable utility services.
Website: www.commerce.state.mn.us
Phone: 651-296-4026
Minnesota Department of Labor and Industry
The Department of Labor and Industry handles all workers compensation questions, labor standards, and other labor related issues.
Website: www.doli.state.mn.us
Phone: 651-284-5005
Conclusion
These are just a few of the major programs and bills that were passed during this last legislative session to help encourage business, employment, and economic development. It is my belief that government does not create jobs; hard working Minnesotans do, and they continue to develop and come up with new and better ideas and products every day.
Now that we are competing on a national and international playing field, sometimes government needs to help our entrepreneurs and job creators with research and resources. I would equate it to chalking the football field and supplying the referees. Then let each and every business owner compete head to head, competing on a fair playing field. And if or when there are some caught cheating or breaking the rules, state regulators step in and “penalize” these bad actors. And in real extreme situations of fraud or corruption – they would be banned from doing business in our state and prosecuted under our laws. But it is not the government’s decision to pick one business over another.
If you have any questions about specific areas that are not mentioned or if you would like a more detailed explanation of some of the areas I discussed – please feel free to contact me by replying to this email or calling my office.
Thank you again for signing up for these Legislative Updates! And, please email me with any questions or policy areas that you would like to see explained or discussed in a future Legislative Update. Thank you, again, for the privileged of representing you in St. Paul!
Best personal regards,
Kurt
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