The 2011 Legislature is fast approaching, and lawmakers have their charge. Minnesotans expect jobs and the economy to be at the forefront.
Minnesota is at a crossroads. The cost of government services is outpacing available revenues, and we aren't getting outcomes Minnesotans expect. As a state we have projected biennial revenue of $33 billion, which represents 8 percent growth over the last biennium; yet we face a large budget deficit because state spending is projected to grow to nearly $39 billion.
Dynamics beyond a daunting state budget deficit also threaten job growth and economic security. Too many Minnesota students fail to graduate from high school and, of those entering the higher-education system, a disturbing number need remedial education. A lengthy and cumbersome permitting process has forced business expansions out of the state. And energy costs continue to rise with no plans for needed future base-load electricity.
To address jobs and the economy, policy-makers must tackle these issues collectively with bold and innovative solutions. There is no quick fix. The Minnesota Chamber of Commerce recognizes the challenge and stands ready to help address these issues so our state can be competitive in the global economy.
We at the chamber believe four priorities must be addressed to ensure a healthy environment for jobs. The best news is that most of these recommendations can advance with little or no additional state spending.
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The state needs to change the way it sets the budget by prioritizing spending, by ranking the value and effectiveness of programs and then matching them with available money. Policy-makers must find efficiencies in the delivery of public programs and services and, as a result, lower the cost for taxpayers. Simply raising taxes, especially in light of an already poor business climate, isn't a solution that will result in more jobs or a stronger economy.
Legislators need to support qualified and effective teachers in every classroom in alignment with the Bush Foundation's initiative with selected colleges and universities to radically reform the way teachers are recruited, prepared, placed and supported. We also need to reinstate the math standard for the
Graduation-Required Assessments for Diploma and continue the reading standard. Minnesota can ill afford to graduate students without world-class skills. These steps will help assure a capable future work force. This is increasingly important since Minnesota's population is aging, and the state demographer projects significant workforce shortages.
Policymakers need to streamline review and permitting processes to ensure businesses can locate and expand in Minnesota. Businesses of all sizes and types need a variety of permits from state agencies if they wish to grow in Minnesota. The process today is cumbersome, costly and lacks certainty. Many other states have figured out how to create a "one-stop shop" to encourage expansion while still protecting health and the environment. Minnesota can, too.
Also, we need to remove the state's bans on new nuclear and coal-fired power plants while revisiting mandates and more broadly reassessing long-term requirements and options. The cost of electricity has increased appreciably in recent years. The four investor-owned utilities have had nine general rate cases in the last five years. As technology becomes more important in everyday business operations, reliability on electricity is more important than ever. We need a sustainable approach.
These four priorities, acted on together, could produce a more stable state economy, an efficient and effective regulatory environment, a more capable work force for the future, and reliable energy long term. Minnesota companies will be better equipped then to do their part, to create jobs to further innovate, successfully sell products and services and to meet customer demands.
It is time to take a series of steps to position Minnesota as a place that companies want to operate in, and an attractive place to find and keep a job.
Andrea Walsh is executive vice president and chief marketing officer for HealthPartners and chair of the Minnesota Chamber of Commerce Board of Directors.
