1\ea\thle~etlpercentof lncomesoftherem~\nlng9 lrw:ome~ofthe Dufngti1>So>me~>«iod,the (6,0)-=~- 11/20/2013 Games & Gimmicks Caused a Budget Roller Coaster General Fund Budget Deficits by legislative Session !1,000) (4,000)---11111111-----------lllllll--'' l'-"'<£11----------{ (S,OOO) __ 2002 2003 2004 2005 2005 2007 2003 2009 2010 2011 2012 Legislative Session \V'here \Ve Started: The Great Recession A Widening Income Gap Across the country middle-Income earners wages have largely decreased or held steady while the incomes of wealth lest Americans have skyrocketed. Mr.lnthly Prlv;rW·So!ctorPayroll Employment In M!noesobi lOOS-2009 JOB lOSSES AND GAINS AT THE HEIGHT OF THE RECESSION Gimmicks+ Deficit 108,000 jobs lost across the state of MN in 2009 alone frcm 2009-1012,the percentofAmericans Americans increased by Increased by .4 pe~ent 3L4pertent 1
-~!.?J.'~.'!-~7_3s_rt1!1!?.~-~!-'.~-~-s-~:P!-'.~£Y?:~-~:2()17_ Actual;~nd -~!~!~-~-~-~-~!1_~-~-~-~-~!'.~:!~!1 ~ ~- ~ 11/20/2013 How Did We Do It? Leveling the Playing Field Governor Dayton and this for the Middle Class Legislature put families first and delivered fairness by asking the UltlttilttiU - wealthiest 2 percent to pay a little ----more In Income taxes- 98 percent UltttttUUU of Minnesotans saw no Income t tax Increase. lltlttttttt II ilttttlitttttt Ulttttttllllt ttlllltlttlttt ttttllltttlill - it I Games & Gimmicks Caused How Did It Help Minnesotans? a Budget Roller Coaster Pro)e<:ted General Fund Budgets by Legislative Session Generated $1.2 Billion in Revenue that: b __________________ _ Repaid $2.6 billlon to Minnesota schools (School Shift) 1116111 ---------------------------------------------------------------- ........ Made historic Investments In education at every level ___ (S,000)-($"4;570t----ll!illi-------------- Created a stable economic environment that has (S,000)------{::0$5::;,0:=20;;<) ____________ _ jumpstarted the economy 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 legislative Session 2
11/20/2013 , @ Jumpstarting Our Economy Since 2011, Minnesota has added 122,200 new jobs AND over 200 business expansions I i,: More Jobs on the Way Investments in our Competitiveness • lvlinnesota Investment Fund - $30m • Minnesota Job Creation Fund - $24m • lvlinnesota Global Competitiveness Initiative - S1.5m • Community Redevelopment - S6m • Adult Workforce Competitive Grant Program - $3.3m • Youth Workforce Competitive Grant Program- $5.7m Minnesota FastTRAC Adult Career Pathways - $3m 1: 3
~ ~ ~ 11/20/2013 Moving Minnesota's Economy Forward Digging Out: Paying Back Our Schools Total borrowed from Minnesota's kids in the "schoolshlftn $3.000 $2.78 $2500 $2.48 $2.000 $1500 $L18 $1.000 $BOOM $0.500 $0 $0.000 Nov.2011 Feb. 2012 Nov.2012 Feb.1013 Feb.2014 Where We Are: E-12 Education Where We Are: Higher Education Where We Lead the Way Where We Must Improve Where We Are On Troclt Where We Must Do Better » Invested $606 million for Minnesota schools (AU-Day K, Early Learning »Invested $250 million for Higher Ed, Financial Aid and Scholarships, LGA, Spedal Ed Reform) Tuition Freete 4
~ 11/20/2013 Educating a World-Class Workforce Jobs and Investment follow talent. Minnesota has historically had one of the best educated and most innovative workforces. That starts with ensuring Minnesota Kids and their famllles have access to a world-class education. Governor Dayton and this legislature has: Made ail-day kindergarten a realrty for every Minnesota child-~ families $2.500 a year. Provided $606 million to E-12 schools to make sure communities have the tools they need to keep class sizes small, lower property taxes, and ensure every Minnesota get gets a world-class education that prepares them to compete In a 21st century economy. Invested In earty learning to narrow the achievement gap, lay the foundation for success, and deliver a 16:1 return on Investment for taxpayers. Delivered the la11est financial aid Increase In a aeneratlon that will help 100,000 students and middle-class families pay for college and froze tuition at state colleges and universities. Moving Minnesota Schools Forward: Reforming Government Through Investing Every Year- No Excuses, No Exceptions Smart Improvements LEAN CONTINUOUS IMPROVEMENT- Efforts to streamline government operations over the last two years have saved taxpayers an estimated '"' ill.miiiilm ""' REFORM 2020- Smart reforms that change how we pay for long-term care services. Providing Minnesotans coordinated, preventive, In-home 15% care to seniors and persons with disabilities that will help avoid costly nursing care and save an estimated S1llJnlJIJ:2n, ""'' IT CONSOUOATION -In 2011 streamlined the state's IT systems and 5% consolidated resources. These efforts have saved taxpayers~ and counting and have made Minnesota a national leader in public sector IT consolidation. 5
n~ [~6 ~ it~ 19~· 11/20/2013 Strengthening Health Care Through Reform We're on the Right Track "The February 2013 Economic Fore,cast shows that Minnesota's economy continues tO outperform the national economy, thanks to an improving labor market that results in higher-than-expected state revenue collections." - MN Budget Project I" HOW WE ARE GETTING STARTED Enacted MNsure: to provide het~lth eare access to over 1 million Minnesotans and save consumers and estimated $1 billion by 2016 Expanded coverqe to 400,000 uninsured Minnesotans which will lower insur.mce premiums for all Minnesotans and save taxpayer5 hundreds of millions of dollars Minnesota Per-capita Income Rank Among 50 States 2012 1950 1960 1970 1980 ·-r 10 !ill lli]l 15 ! 15 17 20i 25 ' national average I 1 Rose from 91% of 30' 6
~ ~60,0 ~ ~ ~ ~ ~ ~ ~.,., ~ }'~ ~ 11/20/2013 Change by Sector Through Recession and Recovery Total Employment Over the Past 14 years 2,800,000 60,000 50,000 40,000 10,0001 20,000 I 10,000 • • E I I I [7.@1 I I ~ "' i ' e i -10,000' g i 2 ' ! s j i I -20,000 , j i "i ·30,000 • ~ ' i 128,000,000 2000 2002 2006 2008 2010 2012 Unemployment Has Improved Layoffs .Have Diminished 45,000 \'v\_ "" 40,000 35,000 30,000 25,000 20,000 15,000 10,000 '·"" "'"' 1010 7
11/20/2013 And Opportunities/Vacancies Are Up So Employment, Unemployment, Vacancies and Layoffs Are At (Or Near) Pre-Recessionary Levels But Top-Level Numbers Conceal Some Persistent Underlying Concerns I • Long Term Unemployment Persist I I • Demographic Disparities • Substantial Underemployment Minnesotans Unemployed For > 26 \Veeks Improvement Across Sub-groups is Mixed 2002 2003 2004 2005 2006 2007 2003 2009 2010 2011 2012 20U 8
,~, 1,465,27~ 11/20/2013 Labor Markets Remain Challenging For Youth 'Underemployment' Persists UR(16-19) zoos zooa zoto zou zou zou 2001 2004 2006 2001 2009 Education Across Job Types Half of MN's Workforce is Underemployed 100% 10,531 90% """ 80% EZ,w: Number Share 70% Graduate 43.6"!. - Proper.!Y __ educated/ em_j>loyed 60% 19,651 .. ,.. '"" Bachelors Over-educated/Under-employed 1,657,10 49.3°/. 1 Associates Under-educated 239,517 7.1'/. 30% Iii Some College 3,361,89E 100.0'/. Total 20% i • ,, HSorless l3,!16S 10% "" HSorless Some College Associates Bachelors Graduate Categories of Jobs By Entry Level Educational Requirements 9
11/20/2013 In Review .... • By many measures our labor markets have fully recovered from the 'Great Recession' • But some groups continue to face extreme challenges, including (but not limited to) the long term unemployed, youth, racial minorities and many with post-secondary education. • Regaining a 'full' utilization of our labor resources and human capital will take much longer than returning to pre-recessionary levels of employment and unemployment. 10
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