PRESS RELEASE

For Immediate Release Friday, February 20, 2009

Contact: Noel LaBine 763-477-3086

Partnership host Commissioner Tom Hanson to speak about what the Stimulus Package means for us in Minnesota

The Wright County Economic Development Partnership held a special breakfast meeting at the Delano City Community Center in Delano on Thursday February 19 th . This event featured Governor Pawlenty's Commissioner of Management and Budget, Tom Hanson, who gave a preview of the impact that the stimulus package will have on MN.

  

Hanson handed out a summary sheet detailing what categories the $4.46 Billion Federal Stimulus were separated into for the State of Minnesota . The largest category was about $2 Billion that could be used for fiscal stabilization or to help Minnesota balance its budget. A large portion of this funding will go for health care support, but this category will still have significant influence on the Minnesota state budget, because of the large amount we typically spend in this category anyway. Funding for MnDOT highways and bridges was also a large category with the total amount budget over $500 million.

According to Hanson a lot of the funding categories are already areas where the State gets federal financial assistance. However, in this latest scenario Minnesota will come out ahead of neighboring states, because unemployment is higher here. Typically the State of Minnesota only gets back about 73 cents for every dollar that is sent to Washington every year by Minnesota taxpayers. However, this year that number has changed to a positive increase. A comparison to Wisconsin reveals that we are getting about 50% more than that state.

There also is a competitive category and much of the “Green Jobs” or alternative energy programs will be dealt with on a competitive basis between states. Any of the tax credit programs for alternative energy installation will have to be interpreted by the IRS.

There will be no money available for school construction, but there are increases in funding for a variety of school and job training programs including Title I, Special education, Education Technology, child care, head start, dislocated workers, and the workforce investment act.

All programs require an application, so various agencies will be putting together descriptions of projects that are ready to go where they can use the funds ASAP after the funds are made available. The time period for making these applications will be 120 days and this includes the time that the state legislatures take to approve the plan. Therefore, some communities that already have projects in place under current programs will benefit. For instance, the communities of Annandale , Howard Lake , and Maple Lake with their new water treatment facility will now be able to fund their completed plant at 1% interest instead of 2%.

Much has been printed and written about the $800 Billion plus Economic Stimulus Package . At this event a closer interpretation of what that means for Minnesota was shared by the Governor's Commissioner of Management and Budget, Tom Hanson.

 

The Partnership exists to enhance the business climate of Wright County and help create more jobs in Wright County . The strategies the Partnership uses to achieve its mission include being an information resource and finding technical assistance; aiding business development through Business Retention & Expansion visits, providing financing resources, and providing business information and training through seminars and workshops. Also, the Partnership markets Wright County to business site locators, and maintains an excellent website, which includes a listing of commercial and industrial property available in Wright County (see www.wrightpartnership.org ). The Partnership also assists with Workforce Development and has gathered economic statistical information, which is available on its website.