ST. PAUL – Rep. Tom Hackbarth, R-Cedar, has introduced a bill he said is designed to bring more transparency, accountability and responsibility to grants and loans the Iron Range Resources Rehabilitation Board issues for economic development purposes.
Hackbarth's bill (H.F. 3925) establishes an oversight commission for the IRRRB's economic development appropriations. The proposal follows recommendations from the Minnesota Office of the Legislative Auditor, which last month issued a report raising serious questions regarding the management and effectiveness of the IRRRB's economic development subsidies.
The IRRRB distributes millions of dollars in grants and loans each year in the name of economic development for northeastern Minnesota. The OLA indicated there has been insufficient follow-up to determine whether grants or loans are achieving the intended results.
"The OLA report raised serious questions about how taxpayer money is being used and whether businesses are following through on job creation promises," Hackbarth said. "Taxpayers, especially citizens on the Iron Range, should support this bill. Increased oversight will help improve economic development in the region instead of just watching our tax dollars go down the drain."
Hackbarth said his bill does not address the funding schools and local governments receive from IRRRB, that his proposal is specific to funding the IRRRB provides businesses in the name of economic development.
The nine-member commission would include six legislators without regional distinction and three at-large citizens from the Iron Range.
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