Dear neighbors,
Despite the “doom-and-gloom” rhetoric about our economy we hear from some people, the facts show that our economy is much, much stronger than when the 2013-2014 legislative session began. This legislative update highlights some of the biggest headlines from the past month that prove without question that our economy is heading in the right direction.
Without a doubt, our economic success is the result of hardworking Minnesotans and businesses – the true engines of our economy. And by passing a structurally balanced budget and investing in education, job creation and property tax cuts, the legislature positioned our workforce and businesses to build on Minnesota’s positive momentum in the years ahead.
Before I share the positive news about our economy, I want to share a recent guest commentary by Shoreview’s great mayor, Sandra Martin, that recently appeared in the Shoreview Press. Mayor Martin highlights how our state and local governments teamed up to secure state funding to help Little Canada and Shoreview establish ‘quiet zones’ to eliminate train horn noise and improve safety measures at railroad crossings – a major issue in our local communities.
Click here to read the Mayor’s commentary.
And now, onto the positive economic news!
Minnesota ranked sixth best state for business:
Minnesota is the sixth best state for business in the entire country according to CNBC’s eighth annual “America’s Top State’s for Business” report. With last year’s ranking at 13th place, our current ranking shows that we continue to build on our positive economic momentum. The rankings cite Minnesota’s “superior quality of life, a vibrant economy and a robust infrastructure” as a few of the biggest reasons behind our success.
Twin Cities metro has lowest jobless rate in the country:
Thanks to our talented workforce and outstanding businesses, we recently learned that the Twin Cities metropolitan area has the lowest unemployment rate of any metro area in the country. With our well known reputation as a great state to live, work, raise a family and do business, we can all be proud of our economic growth and status as a national economic leader.
Budget outlook stable and strong:
Minnesota’s fiscal outlook remains strong because the legislature balanced our budget without using any gimmicks or shifts. A budget that is structurally balanced into the future lays a strong foundation for economic growth. It’s a refreshing contrast to the perpetual cycle of deficits that hurt our economy before the 2013-2014 session began. If you recall, we began the session with a $627 million deficit and nearly $1 billion in debt to our schools.
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 reserve, which will help provide a stronger financial cushion during future economic downturns and protect vital services and needs we all depend on, such as education, infrastructure and health care.
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. This is great news as we continue to close the “skills gap” responsible for thousands of unfilled manufacturing jobs across our state – an issue I spent a lot of time working on during the legislative session.
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.”
My bill to close the “skills gap” and our investments in all-day Kindergarten, preschool scholarships, more funding for every student and a two-year college tuition freeze will help build an even better workforce that can compete with businesses around the globe.
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. 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.”A diverse economy and well-educated workforce are big reasons why our median household income and our quality of life is consistently above the national average.
Contact:
Although this is my last legislative update of the year, I am still able to communicate with constituents on a one-on-one basis. Please do not hesitate to contact me with any questions, comments or concerns throughout the rest of the year. You can reach me by phone at (651) 296-7153, by email at rep.jason.isaacson@house.mn or by postal mail at 545 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.
Sincerely,
Jason ‘Ike’ Isaacson
State Representative, District 42B