Saint Paul, Minnesota – Yesterday, the House DFL unveiled their jobs and economic development legislation with an increase of $46 million in funding over the previous biennium.
The bill contains an addition $1.5 million — $4.6 million total — for the Minnesota Trade Office. Rep. Mary Sawatzky (DFL – Willmar) introduced this legislation early in the session. The Trade Office works to help Minnesota businesses navigate foreign markets and trade regulations so they can increase their exports and put more Minnesotans to work.
“Increasing funding for the Trade Office and opening more trade offices around the world would open up markets for Minnesota businesses and farmers throughout Greater Minnesota, bringing them more revenue, and growing more jobs,” said Rep. Sawatzky. “Increasing our exports and expanding our markets will go a long way to growing our economy and middle-class jobs.”
Minnesota exports grew to $20.3 billion in 2011, which represents a 7.3 percent increase over 2010. Exports continued to grow in 2012. In each of the first three quarters of 2012, exports were higher than in 2011, including an all-time record of $5.4 billion in the second quarter. Final, total exports for 2012 are projected to exceed $21 billion.
Minnesota is a national leader in agricultural exports. In 2011, Minnesota was the 6th largest agricultural exporting state with a record-high of $6.8 billion in total agricultural exports—a 13% increase over 2010. Minnesota’s agricultural exports generated a total of $8.7 billion in total economic activities and supported more than 46,000 jobs in 2011.
When Minnesota opened its first trade office in China in 2005, the state saw a 71 percent increase in exports to China in one year. That is currently our only trade office. Illinois has nine trade offices, Iowa has four offices, and Wisconsin has nine offices. Data from the Brookings Institute demonstrates how increasing exports leads to job growth, with each $100 million increase in exports leading to approximately 665 new jobs.
One of the largest single investments proposed is $20 million to the Minnesota Investment Fund (MIF) which helps companies bring quality jobs to the state delivering funds to Minnesota cities, which can then offer incentives for businesses to come to their area. It also brings $33 in private investment for every $1 it loans out.
“The Minnesota Investment Fund is a proven job creation program that has brought new businesses to Minnesota that were thinking of locating elsewhere,” said Rep. Sawatzky. “It’s an excellent public-private partnership and is a great model for economic development.”
Another significant investment will be over $18 million for a job creation fund. These dollars would be allocated to the Department of Employment and Economic Development (DEED) which would then use the fund as a tool to help businesses make capital investments and create jobs in Minnesota.
Other investments include $5 million for a Fast Trac program that works to provide local employers with the skilled workers they need to grow, and $2 million in onetime funding for the Minnesota Film and TV Board.
The board would offer incentives and work with production companies to bring TV and movie production to Minnesota. In the past, movies like Mighty Ducks and Fargo were produced in communities across the state, creating economic impact through spending on staff, equipment, housing, property rental, and countless other areas. But Minnesota has fallen behind neighboring states in offering incentives for these productions and has since lost out to places like Michigan and Canada. These funds would help bring those economic benefits back to Minnesota.
In addition to funding job creation efforts, the bill includes a substantial tax cut for MN employers. Reducing the rate that employers pay on unemployment insurance taxes will save them almost $350 million in the next couple years. The average MN employer will save $150 per employee.
“While our economy has continued to recover, too many Minnesotans are struggling to find good jobs,” said Rep. Sawatzky. “We have to do all that we can to ensure that Minnesotans are trained for the jobs of today and of the future, that we attract businesses to Minnesota, and that local businesses can make important investments and find new markets for their goods and services. This proposal can help achieve those goals.”
Rep. Sawatzky encourages constituents to contact her with any questions, comments, concerns, or ideas on any legislative topic. Rep. Sawatzky can be reached by phone at 651-296-6206 or by email at rep.mary.sawatzky@house.mn. Constituents can also visit Rep. Sawatzky’s AreaVoices blog, legislative page and sign up for email updates.