Iron Rangers lose House fight to keep economic development money

• Rep. Dave Dill of Crane Lake

Rep. Dave Dill of Crane Lake tells other House members Tuesday that an Iron Range economic development fund helps large numbers of businesses in seven Northeastern Minnesota counties. (Don Davis / State Capitol Bureau)

Talk about it

ST. PAUL — Iron Range lawmakers waged an emotional fight but failed to prevent the Minnesota House from taking $60 million out of an economic development fund slated for the area.

The House approved a bill 70-60 Tuesday funding various job-related programs while reducing spending by $27 million to help balance the state budget.

Iron Range lawmakers lit up the chamber with an emotional hour-and-a-half debate about a move to take nearly half of the Douglas Johnson Economic Protection Trust Fund. Republicans who control the House took the money to help balance the state budget.

“I would not steal your property taxes like you are stealing ours,” said Rep. Tom Rukavina, DFL-Virginia. “I would not steal your children’s future like you are stealing ours.”

Rukavina introduced an amendment to take money from cities represented by Republicans. After lengthy debate, he withdrew it, saying he just was trying to make a point.

“This is a targeting of people because of who they are, how they vote, where they live,” Rukavina said about the Republican-written bill.

The only Republican Iron Range lawmaker bolted from her party to ask lawmakers to protect the Johnson fund.

“They must prepare now by sheltering the money from the mines to prepare for tomorrow,” said Rep. Carolyn McElfatrick, R-Deer River. “This is important for our today, but it also is important for our tomorrow.”

DFL Iron Range lawmakers took to the microphone during almost all of the Johnson debate, with Republicans generally keeping quiet.

However, Rep. Kurt Bills, R-Rosemount, said that taking the money “twists me up.”

“I don’t like how this is done,” he said. “It seems like a near-term fix.”

Money for the Johnson fund comes from taxes on taconite production, which are assessed against mines in lieu of property taxes. It is used to pay for economic development in seven Northeastern Minnesota counties through the Iron Range Resources and Rehabilitation Board.

Since 2002, the fund has helped create 4,588 jobs, said Rep. Dave Dill, DFL-Crane Lake. It is the state’s best example of how to expand business, he added

“When you want to know about economic development, come talk to us,” Dill said.

Rep. Tom Anzelc, DFL-Balsam Township, delivered an impassioned plea to keep money in the fund, saying it can help young people remain on the Range.

“The attack on the people of the Iron Range has to stop,” Anzelc said. “They deserve better.”

Rep. Carly Melin, DFL-Hibbing, said it is important to maintain the fund because taconite will not always be available.

“When there is a ton of taconite mined, it is gone forever,” she said.

Democratic Gov. Mark Dayton’s administration expressed concerns about many issues in the jobs bill, giving it a doubtful future. He has said he opposes taking money out of the Johnson fund.

Overall, the bill would spend $233 million in the next two years, a $27 million cut from what had been expected to be spent.

It would reduce business and community development programs 34 percent, cut state spending on the Labor and Industry Department 23 percent and chop the Housing Finance Department 11 percent.

The bill does not cut programs that provide housing for the mentally ill and homeless, and it increases funding for the blind.

Don Davis reports for Forum Communications Co., which owns the News Tribune.

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