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Omnibus job growth bill seeks to reach across state in more than one way

Members of the House Job Growth and Energy Affordability Policy and Finance Committee listen to public testimony on the committee’s omnibus bill April 18. Photo by Andrew VonBank
Members of the House Job Growth and Energy Affordability Policy and Finance Committee listen to public testimony on the committee’s omnibus bill April 18. Photo by Andrew VonBank

Opportunity, education and industrial growth are central themes of the omnibus employment and economic development bill.

However, proposed cuts to both the Minnesota Investment Fund and the Job Creation Fund may raise the rancor of some, as would the bill’s proposed budget for a statewide broadband plan.

The House Job Growth and Energy Affordability Policy and Finance Committee began discussing the bill Monday afternoon, followed by public testimony. The committee plans to reconvene tonight for more discussion. A vote on the measure could come tonight or Tuesday.

The bill calls for a $10.9 million increase in current biennial spending from the General Fund with another $4 million coming from the Workforce Development Fund.

A large portion of the money would be allocated for one-time appropriations to either grants or pilot program creations.

 

Opportunities offered

The Department of Employment and Economic Development Business and Community Development would see $7.6 million in new spending.

As a so-called “savings-generator” within the bill, the Minnesota Investment Fund would see a one-time reduction of $12 million in General Fund appropriations for Fiscal Year 2017; its base funding would be reduced to $5 million in Fiscal Years 2018 and 2019.

The Job Creation Fund would also see a one-time appropriation reduction of $8.5 million.

“We don’t fund these programs because we like them; we fund them because they propose significant economic value for the state,” said Commissioner Katie Clark Sieben. She estimates that as a result of the proposed cuts Minnesota could lose over $600 million in leveraged investment dollars, and would potentially see 6,000 layoffs in the next year alone.

“Individuals in Greater Minnesota would be specifically affected since smaller communities would feel the impact more,” she said.

“This is a poison pill large enough to choke a horse,” Rep. Tim Mahoney (DFL-St. Paul) said.

The bill would, however, also see its share of increases and spending.

Appropriations would include the creation of a program to provide $2.2 million in economic support to Mille Lacs Lake area businesses adversely effected by the lack of area tourism due to fishing population decline; a $1 million grant to support neighborhood development centers; a $500,000 increase to Enterprise Minnesota, Inc. to help accelerate small business growth; and $7,000 to aid in the modification of small business investor certification requirements.

 

Trades and tourism

One-time appropriations would also create programs to increase interest in different trades and career paths.

The largest would send $1 million in Fiscal Year 2017 to the Construction Careers Foundation to provide year-round educational and experiential opportunities that lead to construction careers for both teens and young adults under age 21.

An $800,000 grant to the Latino Communities United in Services would create culturally tailored programs to address skill gaps for working parents and underserved youth, creating pathways to educational advancement and careers. 

A one-time $600,000 appropriation would provide a grant to Ujamaa Place to support job training, employment preparation, internships and education in the construction trades. Another would provide $500,000 to the YWCA of Minneapolis to provide economically challenged individuals with job skills training, career counseling and placement assistance. Funding for both would come from the Workforce Development Fund.

To couple with the relief available for area businesses, Mille Lacs Lake area tourism will also see a one-time appropriation of $300,000 to help with promotion of the area.

Many other Minnesota towns could see an increase in tourism aid with the establishment of a $500,000 pilot project aimed at securing and funding major events, such as fishing tournaments and concerts.

 

Internet, acquisition and old age

The heavily-discussed Border-to-Border Broadband program shows up in the bill, with an appropriation of $15 million in Fiscal Year 2017 and $25 million in Fiscal Year 2018.

As one-time appropriations, funds would work to provide high-speed Internet access to rural residents across Greater Minnesota by furthering availability, testing accuracy and deploying development. Of the amounts appropriated, $1 million would go to expand grants to unserved areas and $500,000 would go to expand availability in low-income households.

Contentious language in the bill would still allow an incumbent provider the right to first refusal when offering service within the geographic location of any project proposal. Whether the funding would ultimately be enough was also an area of concern.

“This state has a $900 million surplus, and we have not been educated as to why we would barely scratch the surface of bringing broadband to Greater Minnesota,” Mahoney said.

“We are disappointed that the funding does not come close to meeting the recommendation of $100 million set by Gov. Dayton,” Clark Sieben said.

Land acquisition, engineering and Phase II construction of the Lewis and Clark Regional Water system would be supported through a one-time appropriation of $11.5 million provided by the Public Facilities Authority.

And as perhaps a nod to the “senior tsunami,” additional help for senior citizens would also be a focus.

Increased services for the blind to continue to live independently and have a higher quality of life would see a one-time appropriation of $200,000. Another one-time appropriation of $500,000 would go to fund independent living centers across the state.

 

What’s in the bill?

The following are selected bills that have been incorporated in part or in whole into the omnibus employment and economic development bill:

HF409 (Gunther); HF593 (Kresha); HF662 (Mahoney); HF776 (Sanders); HF2012 (Knoblach); HF2440 (Moran); HF2989 (Loon); HF3065 (O’Neill); HF3114 (Lueck); HF3210 (Baker); HF3435 (Baker); HF3458 (Erickson); HF3532 (Dean); HF3626 (Gunther); HF3633 (Baker); HF3658 (Rarick); HF3717 (Hamilton)


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