Paul Thissen: Innovation in Action

Minnesota is faced with one of the greatest budget challenges in decades. The $5 billion budget deficit is driven by the rapid collapse of the economy and a high rate of job loss in Minnesota.

Just like private corporations and small businesses, we will be forced to make substantial cuts.  But we must do so with a clear vision of our priorities and our shared values. I believe that means balancing the immediate needs of Minnesotans who have lost jobs and face economic insecurity along with the need to build institutions and polices that will help us do a better job of preparing for future economic storms.  We need to build an economy that is not solely about productivity, but also about reliability and security for Minnesota families.

Below I include some ideas for how I would prioritize the budget (in the context of budget cuts) in the upcoming session. But we need the ideas of all Minnesotans across the state to pull us through this economic crisis. Please share your thoughts on our Idea Board.

Invest in Jobs that Will Serve the Common Good

State government cannot turn a sour economy around by itself. But it can prioritize opportunities where job creation and proper public investment intersect. For instance, in many communities, housing is substandard or unaffordable. Our state should invest to transform those communities with high quality housing. We also know buildings built in the last century waste energy and water because they are inefficient. We can make it a priority to invest in updating our buildings so they are efficient for the 21st century. Good jobs now are good for all of us in the future.

Reform Health Care Programs to Get Relief to People Now

As people lose jobs, families lose access to health care.  Yet, the state imposes rules that prevent people from quickly accessing health care benefits for which they are eligible.   One area the state has a budget surplus is in the Health Care Access Fund, a pool of money to make sure Minnesotans have access to affordable health care.  We should use that money to speed up access to benefits for those who have lost their jobs in the economic downturn.  Not only would that provide needed relief to thousands of Minnesota families, but it would allow us to learn how to administer those programs more efficiently in the long-term.

Emphasize Retraining So We Emerge with a Smarter, More Competitive Workforce

As workers lose their jobs or move into part time positions, the State should work in partnership with private businesses to increase the number of non-traditional, older students who earn college degrees.  We should approve a tax credit to employers who are willing to cover the costs of college tuition and educational fees for newly part-time or temporarily furloughed employees who return to school.

Support Service and Minnesota’s Non-Profit Sector

Minnesota has been well-served by its vibrant community of non-profits and a high rate of volunteerism.  Community organizations are among our best innovators in delivering social services.  We could reprioritize existing money to create a Community Investment Fund; a corollary to the venture capital funds that provide support to for-profit entrepreneurs.  A Community Investment Fund would make long-term, results-oriented and stable investments in effective non-profits to allow their ideas to be brought to scale.  And the fund would leverage additional private resources and tap into the federal Serve America Act money that is likely to be a priority for the incoming Obama administration.

These ideas are just scratching the surface of new and innovative ways to approach the budget deficit. Over the coming months, I will share more of our work in the legislature. And I hope you will join us by sharing your ideas and comments.

How do you generate good-paying jobs in small town Minnesota?  How do you attract and retain trained, high-quality medical professionals to rural communities?  And how do you use local resources wisely in an age of tight budgets?  These questions plague small communities across Minnesota.

The City of Luverne, a city of 4600 in southwestern Minnesota, offers one promising story.  City leaders collaborated with a large non-profit medical powerhouse, Sanford Health Systems, and a public, post-secondary educational institution, MN West Community and Technical College, to create the Luverne Educational Center for Health Careers.

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Minnesota state government’s financial volatility has been referred to as a roller coaster. There are rising surpluses then falling deficits then flat periods then rising surpluses and steep deficits. Right now, Minnesota’s economy and financial system have surpassed the good times and are headed down very rapidly.  What can we do to control the roller coaster?

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