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State Representative Tom Anzelc
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4936
For more information contact: Michael Howard 651-296-8873
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Iron Rangers United Against Job Killing Proposal to Gut Douglas J Johnson Fund
Saint Paul, Minnesota – Iron Range legislators joined at the State Capitol to voice their opposition to Republicans job killing plan to raid $60 million from the Douglas J Johnson Economic Development Trust Fund. The historic cut would deplete half the fund and use the resources to backfill cuts in programs used throughout different regions of the state.
“This is highway robbery," said State Rep. Tom Anzelc, Chair of the Iron Range delegation. “Republicans are taking tax dollars that are raised on the Iron Range, for jobs on the Iron Range, and then using it for other things.”
The Douglas J. Johnson Fund is funded with a portion of the taconite production tax, which is paid by the mines in lieu of property taxes. The Republican author of the bill was quoted in a Minnesota Public Radio story questioning whether his own bill was even legal.
"What we're taking is their economic development fund, and using that for other purposes for other places," Rep. Bob Gunther said. "If it went to court, we probably wouldn't prevail anyway."
Anzelc and Rukavina agreed.
“It would be the same as if we took property tax dollars from Edina or Woodbury homeowners and used them for our own pet projects,” said State Rep. Tom Rukavina. “This is a blatant attempt to stick it to the Range and thousands of families and workers will pay the price.”
The Douglas J Johnson Economic Development Trust fund was set up in 1977 to help the Iron Range diversify its commercial industries and strengthen economic development as mining resources became less abundant. The fund is used for a variety of purposes that promote economic development including loans, interest buy-downs, investment in local projects and purchasing land.
This week, IRRRB Commissioner Tony Sertich testified that the fund has provided significant help to over 50 companies in recent years including many that would not have opened shop without these resources.
“When this fund goes away, more jobs go away. It’s that simple,” said Anzelc. “We need people to know far and wide how bad this would hurt our state’s ability to create jobs and stay economically competitive.”
“If the majority is successful at stealing this money, the impact will be felt for generations to come,” said Rep. Carly Melin (DFL-Hibbing). We use this money for economic growth, development, and diversity. This local money creates jobs. The Republican’s proposal to steal this money will kill jobs for decades.”
The Jobs and Economic Development omnibus bill that includes this cut will be heard today at 12:30 p.m. in the Jobs and Economic Development finance committee.
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