Saint Paul, Minnesota – Tonight the Minnesota House of Representatives passed HF 729, the Omnibus Jobs, Commerce, and Housing Finance Bill on a 75-57 vote. The bill contains a $1.5 million increase for the Minnesota Trade Office. Rep. Mary Sawatzky (DFL – Willmar) chief authored this legislation as her first bill early in the session and fought for its inclusion in the final omnibus bill. 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.
With this additional funding, the Department of Employment and Economic Development (DEED) will open three more trade offices in other parts of the world, provide grants to businesses interested in exporting their products to foreign markets, and develop marketing materials aimed at out-of-state businesses and designed to emphasize the benefits of doing business in Minnesota and with Minnesota companies.
“Our homegrown businesses make great products that we should be selling around the world,” said Rep. Sawatzky. “This is a proven solution that can boost our economy, help our businesses, and grow jobs. We can’t afford to continue to lag behind our neighboring states and economic competitors.”
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.
The bill also includes a substantial tax cut for MN employers through a reduction in the rate that employers pay on unemployment insurance. This will save businesses $350 million over the next two years. The average Minnesota employer will save $150 per employee.
In addition to increased funding the for trade offices, the bill contains $20 million for the Minnesota Investment Fund (MIF). MIF helps companies bring quality jobs to the state by delivering funds to Minnesota cities, which can then offer incentives for businesses to come to their area. It brings $33 in private investment for every $1 it loans out and has been successfully used throughout the state to bring jobs to Minnesota.
Another significant investment in the bill is $18 million for a job creation fund. These dollars would be allocated to 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 FastTRAC 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.
“Growing jobs and strengthening our economy is one of our top priorities and this budget bill reflects that,” said Rep. Sawatzky. “While our economy is improving, too many Minnesotans are struggling to find jobs and make ends meet. This plan can help us close the job skills gap, expand our markets, and attract new businesses to Minnesota.”
Among the Commerce provisions in the bill is a $10.6 million increase in funding for the Explore Minnesota Tourism (EMT) advertising campaign. The increase is paid for through lower spending for the Commerce Department.
Tourism is an $11.9 billion industry in Minnesota, supporting 240,000 leisure and hospitality jobs, which represents 11 percent of private-sector employment. Today, Minnesota’s tourism office funding level ranks 30th nationally and far below regional competitors like Michigan, Wisconsin, South Dakota and Illinois. Wisconsin Dells has a larger marketing budget, just for itself, than EMT does for all of Minnesota. Two independent consultant groups found that EMT marketing campaigns generate almost $8 in state and local tax revenue for every $1 of public funds spent on the ad campaign.
“Expanding our tourism marketing can bring more visitors to our beautiful state and support our growing tourism industry and the businesses and employees who rely on it,” said Rep. Sawatzky. “This is an investment well worth making.”
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.