Dear Neighbors,
This legislative update highlights a tremendous amount of positive economic news from non-partisan sources. Despite the “doom-and-gloom” rhetoric from some people, the facts show that our economy is healthy and growing.
Here are some of the major headlines over the past few weeks.
Twin Cities metro has lowest unemployment rate in the country:
Thanks to our talented workforce and strong businesses, we recently learned that the Twin Cities metropolitan area has the lowest unemployment rate of any metropolitan area in the country. With our reputation as a great state to live, work, raise a family and do business, Minnesota’s economy continues to grow and expand prosperity for middle-class families.
Budget outlook stable and strong:
Thanks to our workforce, businesses and smart fiscal management by the legislature, Minnesota’s budget outlook remains strong. It’s a refreshing contrast to the perpetual cycle of deficits that hurt our economy before the 2013-2014 session began.
According to the most recent economic report from Minnesota Management and Budget, general fund revenue for Fiscal Year 2014 (which ended on July 1) came in at $168 million more than projected in February 2014. Most of that extra revenue came from income tax receipts, a key metric that shows more people are going back to work. We also have an additional $150 million in our budget reserves, which will help provide a financial cushion in future economic downturns and help protect vital services and needs like education, health care and infrastructure.
More analysis is available from Minnesota Public Radio:
http://blogs.mprnews.org/capitol-view/2014/07/minnesotas-budget-reserve-gets-a-boost/
Minnesota ranked sixth best state for business:
According to CNBC’s eighth annual “America’s Top State’s for Business” report, Minnesota is the sixth best state for business in the entire country – a strong improvement from being ranked 13th last year. The rankings cite Minnesota’s “superior quality of life, a vibrant economy and a robust infrastructure” as a few of the major reasons for our success.
Twin Cities metro area showing sturdy growth:
A new report from economic experts at BMO Harris Bank says that Minnesota’s economy continues to grow at a firm pace and continue growing throughout this year. According to the report, the Twin Cities metropolitan area’s sturdy and diverse economy is expected to remain on a solid growth track in the years ahead, due in large part to our region’s wide swatch of service industries.
Todd Senger, Minnesota Regional President of BMO Harris Bank, had this to say:
“Our state and metro area have a lot going for them with our job growth, diversity of industries and the confidence businesses have shown by investing in their operations and people. This report confirms the positive outlook we have seen among businesses and business owners in the last few months, and we fully expect to see the upturn continue as more and more businesses feel the effects of the growth in our area."
Michael Gregory, Head of U.S. Economics for BMO Capital Markets, added:
"The area includes more Fortune 500 companies per capita than any other major metro region in the United States; this diversity helped soften the downturn, with real GDP falling 3.5 percent peak-to-trough on an annual basis versus 4 percent for all metro areas. Many Midwest cities, such as Chicago, St. Louis and Indianapolis, are just now seeing real GDP return to pre-recession levels. Contrast that to Minneapolis-St. Paul where GDP was 5.2 percent above the 2008 high according to the latest available city-level data."
Minnesota ranked third best state to make a living:
Forbes recently ranked Minnesota the third best state to make a living, up from being ranked sixth last year due to our “very low unemployment rate and excellent workplace conditions.” Minnesota continues to boast one of the highest numbers of Fortune 500 companies per capita in the country, spread out among a diverse range of sectors. A diverse economy and well-educated workforce are big reasons why our median household income and our quality of life is consistently higher than the national average.
Minnesota ranked second for talent pipeline:
The U.S. Chamber of Commerce recently ranked Minnesota second in the nation for our ‘talent pipeline’ – a key metric of the skills and talents of our workforce.
Here is an excerpt from the Chamber’s report:
“Ranked 2nd for its talent pipeline in this year's report, Minnesota is strengthening workforce skills and economic growth by bringing multiple stakeholders to the table to work in partnership.
The state's Governor's Workforce Development Council (GWDC) brings together leaders from the private, public, and education sectors, along with community leaders, to recommend ways to better align the state's workforce skill development with real-world needs.
The Minnesota Job Skills Partnership, part of the state's Department of Employment and Economic Development (DEED), has also been tasked with leading state efforts to build a more globally competitive workforce. The initiative provides training grants of up to $400,000 to educational institutions throughout the state to build workforce skills training partnerships with private industry.”
The legislature’s investments in education, such as providing all-day Kindergarten for every child, preschool scholarships for low-income families, additional funding tied to rigorous achievement standards and a two-year college tuition freeze, are helping to continue building a talented workforce that can compete with businesses around the world.