What business wants in Minnesota, and how government (and taxes) are helping 5/28/2009 8:58 AMThe closing debate in the legislative session featured a lot
of rhetoric from self-appointed guardians of the business climate in Minnesota, declaring that
keeping state taxes at their current historically low level was the only important
priority for economic health.
But it was notable
how little of this anti-government invective -- at T-party rallies or on talk-radio or the blogosphere --
was coming from the serious and responsible business leadership in this state. Instead, the
mainstream business community in this state seems to be working constructively
WITH government and the public sector on specific solutions aimed at
resuscitating the state economy, retaining and creating jobs, and improving the
state’s quality of life. Take, for instance, the five-year-old “Grow Minnesota!’’ initiative of the Minnesota Chamber of
Commerce, the state’s largest and most broad-based business advocacy group.The
Chamber, by the way, is the group that
last year courageously fought and defeated the anti-tax forces, helping push
through a modest gas tax increase and
desperately needed transportation infrastructure funding. Grow Minnesota!’s recent work
involved Chamber teams making actual visits to 700 companies to determine what
they need to hold and expand jobs. Those visits resulted in a consensus that
workforce training and education and other infrastructure (mostly paid for with
taxes) was vital. To be sure,
some of those businesses also cited taxes, a public-sector expense, and
health-care costs, a mostly private-sector expense, as problems.
Pressure to reduce business costs will always be part of the story, and that’s
why my organization has supported some reductions in regressive business taxes
as part of a progressive economic framework. But the most
interesting stuff in Grow Minnesota’s annual report were the individual
stories that highlight specific actions the initiative has taken to solve
problems. Here are three examples.
**Visits to
the company Acrylic Design in the western suburb of Plymouth identified “a
disconnect’’ between precision manufacturers and education and training resources. A $45,000 Framework for Integrated Regional
Strategies (FIRST) grant from the state of Minnesota, was secured to help expand the
pipeline and one of the next steps could be a program to get more K-12 students
“excited about precision manufacturing.” That’s taxpayer dollars at work. **Visits to Thief River Falls in northwestern Minnesota
identified the crucial importance of not only the local airport, but of
retaining aviation mechanics students who were graduating from the local Northland Community Technical College. The Grow Minnesota team helped raise funds
for scholarships in the program (tax cuts have made tuition unaffordable for
many) and promised to find jobs for those who graduated. That’s direct private support for taxpayer
dollars already at work.
The spirit of
cooperation and public-private partnering is a two-way street and the public
sector is doing its part in initiating collaboration as well. Last week the Minnesota State Colleges
and Universities system released a report, “Workforce of the Future: Leadership Reaches Out to Business,’’ based
on visits by public college officials to 352 businesses last summer and fall. The
verdict: “Business leaders across the
state overwhelmingly identified an insufficient supply of educated and skilled
workers as the primary barrier to their companies’ long-term growth.’’
James H. McCormick, chancellor of the
system and its 32 colleges and universities, said that “business leaders
frequently pointed to the intellectual capital of the workforce as a key to
their competitive advantage.’’
And to meet
the expressed demand for “new workplace competencies,’’ including advanced
technology skills, business-critical “soft skills’’ in customer relations and
teamwork, MNSCU has outlined several steps for improvement. These include expanding internship and
apprenticeship options and on-the-job training, more online education more
flexible learning strategies.
McCormack
and Minnesota Chamber President David Olson, who fortuitously happens also to
be the chairman of MNSCU’s governing board, deserve praise for this
constructive collaboration and recognition of the need for public and private
teamwork.
This kind
of private-public synergy used to define the Minnesota way of doing business AND building
a state in which prosperity was more
evenly shared. Instead, in recent
years of domination by policies intended to keep taxes low and de-fund the
public sector, we see rising inequality and poverty rates, a stagnating middle
class, and an economy that is underperforming the nation’s for the first time
in a four decades.
The more
enlightened business leaders recognize these facts and want sincerely to
improve the public sector, not punish it. Economic growth turns out to depend a lot on economic justice and
equality of opportunity.
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