Rep. Jay McNamar: I wanted to address the status of Minnesota’s economy. New numbers released this month have shown that Minnesota’s unemployment rate has dropped yet again, from 5.3 percent down to 5.2 percent. That looks pretty darn good compared to the U.S. rate of 7.6 percent. The last time it was this low was all the way back in May 2008, over five years ago and before the great recession.
this year, we tripled Minnesota’s investment in job creation. Our budget invested $100 million in economic development; a near $60 million increase. The new funds will help bring businesses to communities across the state by offering loans and grants for new companies or for expansion of current companies.
We also knew that existing businesses need as much help from the state as possible to stay strong as foundations for our communities. That’s why we lowered the cost for unemployment insurance by $350 million. It will help save the average Minnesota employer $150 per employee. [Read More]
Properly adjusted for inflation and population growth, the size of government in Minnesota has declined over the last 10 years.
After an appropriate adjustment for inflation is made using this implicit price deflator, real per capita growth in Minnesota state government spending from 2001 to 2011 is 7.3 percent. Minnesota’s rank among the states in terms of total state spending growth remains 35th.
Public investment in Minnesota not only has been declining relative to other states, it also has fallen in real per capita dollars. Fortunately, the 2013 Legislature made progress toward reversing this trend by shoring up the state’s investments in education, economic development, workforce training, affordable housing and other areas, while making Minnesota’s tax system more fair and balancing the state budget without shifts and gimmicks. [Read More]
Gov. Mark Dayton requested federal assistance last week, noting that the storms caused roughly $17.8 million in damages to public property like roads and bridges. The storms also caused heavy damage to trees and power lines, knocking out power to 600,000 homes and businesses.
The president's signature paves the way for the federal government to help pay for efforts to clean up communities damaged by the severe storms, wind damage and flooding that hit Minnesota June 20-26.
The disaster declaration means townships, cities, counties, schools and some non-profit organizations will receive aid to help with the repair. The Federal Emergency Management Agency would fund 75 percent of the approved costs. [Read More]
July 26, 2013 | News Alerts
Minnesota's economic future is set to make a rebound, a top official from the state's economic department said here Thursday.
According to Kevin McKinnon, director of business and community employment for the Minnesota Department of Employment and Economic Development (DEED), many DEED programs played a role in recovering about 95 percent of jobs in the state since the economic recession of 2008.
He also added that with a state unemployment rate of 5.2 percent, compared to the Bureau of Labor Statistics' June 2013 national unemployment rate estimate of 7.6 percent, there is indication the state's businesses are expecting a year of growth.
Among the DEED economic programs McKinnon highlighted were the Minnesota Investment Fund, which provides financing to eligible businesses financing to increasing jobs and the quality of those jobs.
With more than $30 million available, the Minnesota Investment Fund has the capability to create nearly 10,000 jobs in the state, according to McKinnon. He added about 80 percent of all the appropriated funds have gone to projects in greater Minnesota. [Read More]
Minnesota is on track to exceed the state’s single-year record for new business filings, is home to 19 Fortune 500 companies, has the nation’s fifth-fastest-growing economy, and the state’s unemployment rate at 5.2 percent is ninth best in the country.
Even with a strengthening economy, economic challenges have developed over the years along the Minnesota and North Dakota border. That is why Gov. Mark Dayton and the Legislature changed strategy and fixed the $627 million budget deficit honestly, without using one-time fixes or gimmicks.
This new strategy created a stable and stronger budget into the future and let the Legislature make important investments in areas such as education, property tax relief and job creation — areas vital to the success of our state and economy. Lawmakers also passed significant border-cities legislation. [Read More]