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Friends and Neighbors-

Today's focus is the Jobs and the Economy.

This Tuesday, Dec. 4, please join me for an informal Business Roundtable discussion at the Chisago Lakes Chamber of Commerce office in Lindstrom, at 9 am. About 16 business owners and managers showed up for a lively discussion in North Branch last month, and I hope the Chisago Lakes discussion will be just as vigorous.

Today, the Department of Finance and the State Economist released the annual November financial forecast. The short-term forecast is sobering, and the long-term forecast even more so. Projected revenues are down $740 Million through 2009.

The $740 Million shortfall will be covered partly by the $294 Million cash balance left from finishing the 2007 legislative session under budget. Also helping cover the shortfall is an unexpected revenue from last year of $139 Million. Combined with $66 Million unanticipated expenses for 2008-9, the final projected deficit is $373 Million.

Some things to keep in mind about the forecast:

• Minnesota's economic growth rate is falling behind the national average:
  • Minnesota = 1%
  • Nation = 1.5%


• According to State Economist Tom Stinson, the chance of the situation improving in the February forecast is 10%. The chance of it getting worse is 35%.


• Mr. Stinson also commented that our job growth rate in Minnesota is only a little more than a third of the national average:
  • Minnesota = 12,000 new jobs/year
  • Nation = 30,000 new jobs/year

If you would like more information about the forecast, visit the Department of Finance website: http://www.finance.state.mn.us/index.html

Mr. Stinson explained the situation succinctly: "Clearly the state needs more jobs." I couldn't agree more.

This year marked the first time in 34 years that Minnesota’s economy has performed worse than the national average. While government is not the only player in job growth, a few factors should be considered. The vetoed Bonding Bill and the Transportation Funding Bill would have infused thousands of construction jobs directly into Minnesota’s economy - through private contracting firms - and thousands more indirect jobs.

I’ve been meeting with venture capitalists in the state discussing a public-private partnership toward Clean Energy or Green Business investment opportunities. One of the factors discussed in today’s economic forecast was the high cost of oil; anything about $75 / barrel long-term could slow the economy even more. With the strongest Renewable Energy and Energy Efficiency Standards, Minnesota should be at the forefront of the new energy economy. I hope this discussion will be a key part of the 2008 legislative session.

This afternoon, I am attending a Family Readiness brief for Minnesota Marines at the Naval and Marine Corps Reserve Center on Bloomington Road in St. Paul. The briefing is to prepare servicemembers and their families for their deployment to Iraq next year.

I hope you stay warm this weekend - and drive cautiously. As usual I welcome your thoughts, ideas, questions and comments.

My best,
Jeremy

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Jeremy Kalin
State Representative - 17B
sign up for my email updates at www.house.mn/17b

Contact me at the Capitol:
Rep.Jeremy.Kalin@House.mn
651.296.5377
579 State Office Building
100 Rev. Dr. Martin Luther King, Jr. Drive
St. Paul MN 55155

Contact me at home:
11629 Loftman Trail
North Branch, MN 55056
651-257-9861
Jeremy@Kalin.com