2019 DEED Legislative Session Update Governor’s Workforce Development Board June 12, 2019 Darielle Dannen
2019 Legislative Session Overview • The 2019 Legislative session adjourned the regular session on May 20 without passing major budget bills; a one-day special session was called for May 24th. • All budget bills passed the legislature during the special session except a capital investment bill. • The legislature is scheduled to reconvene on February 11, 2020.
Economic DevelopmentBorder-to-Border Broadband Grant Program • $40 million for Border-to-Border Infrastructure Grant Program in FY20-21 • No policy changes • Task Force renewed by Governor Walz
Economic DevelopmentMajor Program Funding • Minnesota Investment Fund - $23.94M • Job Creation Fund - $16M • Child Care Business Startups - $750,000 • Bus Dev Competitive Grants - $2.85M • Emerging Entrepreneur Loan Program - $2M • Minnesota Job Skills Partnership - $8.39M • Job Training Grants - $2.7M
Economic DevelopmentAngel Tax Credit Program $10 million in TY19 $10 million TY 21 • Lower investment • Clawback provision • Lower fines
Economic DevelopmentNew Programs Launch Minnesota - $5 million • Leadership • SBIR Grants • Business Liquidity Grants • Entrepreneur Benefits • Organizational Grants Airport Infrastructure Renewal (AIR) - $700k • Business development on airports
Economic DevelopmentDirect Appropriations • Direct Appropriations of $5.05 million • White Earth Nation ($250k) • Hmong Chamber of Commerce ($125k) • Rondo Community Land Trust ($250k) • MEDA ($800,000) • Rural Center for Entrepreneurial Facilitation ($300k) • Enterprise Minnesota ($900k) • Neighborhood Development Center ($1.3m) • Initiative Foundations ($750k – Child Care) • Center for Rural Policy ($278k) • FIRST Upper Midwest Robotics ($100k)
Economic DevelopmentPolicy Changes Minnesota Investment Fund • Policy change allows the DEED commissioner to transfer funding from MIF to the Redevelopment Grant Program. • Allows one-time exception to restrictions on use of local MIF Angel Tax Credit Program • Lowers the investment threshold
Economic DevelopmentProgram Cuts • Cut of $1.06 million from the Minnesota Investment Fund
Workforce DevelopmentOpportunity Funding Competitive grant programs - $5.092M • Pathways to Prosperity - $11.396 million • Women in Nontraditional, High Wage Jobs Grant Program (WESA) - $1.5 million • Support Services - $2 million • Youth at Work - $8.196 million • Southeast Asian Economic Relief - $2 million
Workforce DevelopmentOpportunity Direct Appropriations • Direct Appropriations - $14.176 million focused on closing the opportunity gap
Workforce DevelopmentCuts • Eliminated funding for DEED’s Capacity Building Grant program • $ 815,000 cut for Pathways to Prosperity from the FY18-19 funding level
Programs Serving People with DisabilitiesNew Investments Vocational rehabilitation services • $7 Million in FY20-21 and base funding Employment support services • $1.8 million in FY20-21 for grants to programs that provide employment support services to persons with mental illness. • $ 4 million in FY20-21 for rate increases to providers of extended employment services.
Other Notable Appropriations • Duluth Regional Medical Exchange District • $98 million in funding • 5 specific infrastructure projects
2020 Legislative Session • Traditional bonding year • Possible policy changes • Questions?