A Smart Investment Agenda for the Next Decade, and Moving the Ball

CENTER FOR A PROSPEROUS, FAIR, AND SUSTAINABLE MINNESOTA ECONOMY Volume 12 Spring 2010 A Smart Investment Agenda for the Next Decade, and moving the ball on government accountability and redesign rowth & Justice has been work- This new eight-page brochure features Well before the latest state budget G ing since its founding in 2002 a grid detailing a vision, measurable crisis began to take shape, we led the on a strategic public investment plan goals and specific action ideas for job way in flagging government account- for improving both business growth growth, economic justice, and each of ability and performance as a top prior- and economic justice, four major policy areas in ity for research and advocacy. focusing mostly on which public investments education, transporta- are crucial. We have long argued that a majority tion, tax fairness, eco- of our citizens do support smarter pub- nomic development and We’ve already shared this lic investments that advance economic improving government agenda with gubernatorial fairness and business growth, as long accountability. candidates in all political as they believe that our governments parties and we’ll be distrib- are making a good-faith effort at As political campaigns uting it widely to candi- efficiency, effectiveness and account- focus more attention dates, community leaders, ability in the use of public revenue. on public policy in news media and others in the coming months, the coming months. Our policy report, Governing with Ac- we’ll be in the thick of countability, established fundamental it, promulgating our Meanwhile, we are keeping principles for good and effective gov- comprehensive, at-a-glance summary, up the drumbeat on an equally im- ernment. We identified the topmost A Smart Investment Agenda for Min- portant policy front, namely, making “cost-driving” areas in need of reform nesota’s Next Decade. government work better. in state and local government, from continued on page 5 New briefs show need, strategies for making Smart InvestmentsSM in Minnesota’s Students New web video highlights rowth & Justice has produced an important series Growth & Justice education initiative G of two-page policy briefs on education that presents his March Growth & Justice debuted a new web new research and recommends actions to improve edu- T video that outlines a strategic plan for improv- cation and boost the share of Minnesota’s young people ing educational outcomes for Minnesota’s students. successfully completing higher education. The video, “I want to go to college,” highlights the most effective evidence-based practices, measures The new series – called What We Know about Smart In- and methods of accountability featured in our Smart SM vestments in Minnesota’s Students – offers key facts and InvestmentsSM in Minnesota’s Students investment policy proposals useful to state lawmakers, school district proposal. It is part of a new section of our website that officials, education advocates, engaged citizens and candi- lays out reasons for the proposal, investment strate- dates for office from all political parties. gies, and allows visitors to take action in support of improved education outcomes in Minnesota. The policy briefs emphasize the importance of education to the past strength of Minnesota’s economy and under- The video features Growth & Justice president Dane score the critical need to improve education – especially Smith, education expert Angie Eilers, and some of the among Minnesotans of color – in order to keep the state’s students that stand to benefit from better investments economy strong going forward. in education. They cite data that demonstrates how a strong focus on education in Minnesota is to thank for continued on page 4 continued on page 4 From the President By Dane Smith CONTENTS t the Capitol or mixing with to reach toward nothing less than A Smart Investment Agenda for A civic leaders we frequently hear renovating our essential character as the next decade ...... 1 praise for our impact as the persistent a progressive good-government state. voice of progressive and practical And we are firing on all cylinders in New web video highlights common sense on tax-and-budget the drive toward that end. Growth & Justice education and economic issues, and on the piv- initiative ...... 1 otal questions about the proper size In April, we sent all the gubernatorial and role of government. candidates a comprehensive and New briefs show need, strate- concise Smart Investment Agenda, gies for making Smart Invest- And we won’t be falsely modest with aspirational visions and ments in Minnesota’s Students ...... 1 about our output. We’ve produced goals, measurable outcomes, and more than 50 policy-related columns specific strategies for a Minnesota From the President ...... 2 for the Capitol Report legislative economic renaissance. We hope newspaper alone, and have written you’ll familiarize yourself with this G & J transportation report on more than two dozen pieces that have document, available on our website freight garners attention ...... 3 appeared in the Star Tribune, the Pio- and we encourage you to share it Meet the newest members of neer Press and many of Minnesota’s with others. other leading newspapers, along with the Growth & Justice Board of Our goal of a 50 percent increase Directors ...... 5 scores of blogs that have been picked up by MinnPost, MPR NewsQ, Poli- in the higher-education attainment Thank you 2010 donors ...... 6 tics in Minnesota and other online rate in Minnesota is something sources. You’ll also find Growth & that business leaders and education Meet the Growth & Justice Justice staff providing commentary advocates alike overwhelmingly spring interns ...... 8 and analysis on local and statewide embrace. We’re digging into a new radio and television programs. dimension of that project in alliance with the Minnesota Minority Educa- Our research and analysis on education Partnership, focusing on the per- GROWTH & JUSTICE tion, transportation, economic devel- sistent achievement gap that puts too opment, government redesign and many of our children, and our state’s accountability, and tax fairness and future work force, at a disadvantage. Our mission is to make Minnesota’s sufficiency is respected and sought economy simultaneously more after. We are asked to testify before We’ve been developing new work on prosperous and fair. We are a non- committees at the Legislature, and what it will take to close a prosperity partisan advocate for fair taxation policymakers from both sides of the gap between the Twin Cities and the and “smart” public investment — aisle respect and value our work. rest of our state. We’ll be contribut- fiscally responsible, accountable ing a major statement on that subject investment that advances prosperity A former legislator who is helping to the Center for Rural Policy and for all Minnesotans. We believe a craft a government accountability Development’s Rural Minnesota package recently told us that a partic- Journal, in an upcoming edition sustainable economy provides the ular bill, creating a Minnesota Gov- devoted to telling Minnesota’s next foundation for a just society. ernment Innovation and Research governor what he or she needs to Council, probably would not have know about Greater Minnesota. happened without our pro-active advocacy and networking skills. That’s We are making a difference for Min- nesota – but we can’t do it without GROWTH & JUSTICE as good as it gets, hearing that our efforts really make a difference. your ongoing support, for which we 2324 University Ave. W. thank you deeply. Suite 120A The stakes are high this election year, Saint Paul, MN 55114 as Minnesotans reach a fork in the phone: 651-917-6037 policy road. We’re working to edu- fax: 651-641-7223 cate citizens and candidates about the email: [email protected] power of smart public investments www.growthandjustice.org in human capital and infrastructure that provide for business growth and Newsletter layout: Mark Tundel a more broadly shared prosperity. We reject the dogma of public disin- vestment, and urge all Minnesotans

2 • Spring 2010 Volume 12 Growth & Justice transportation report on freight garners attention

wo of Minnesota’s major daily said the article in the Star Tribune. Intermodal freight movement. Min- T newspapers – the Minneapolis nesota relies more than most states Star Tribune and the Duluth News “Given Duluth’s critical role as a on rail and water for freight ship- Tribune – featured Growth & Justice transportation hub, leaders in the re- ments because it is a major producer opinion articles about our recent gion and statewide will need to target of bulk commodities, including iron report on freight transportation, call- the area for investments to improve ore, grain and other crops. Railways ing attention to ideas for how best to freight handling and hauling,” said handle about one-third of Minne- improve travel the article in the News Tribune. sota freight shipments measured by time and ef- The Star weight. This freight often must be ficiency for Tribune transferred between modes. Transfer trucks and commen- points may be privately owned but intermodal tary called require good access to public roads freight. out four and waterways. The freight key areas Impact of truck weights. A fully report, avail- of con- loaded commercial truck cre- able at urges cern for ates thousands of times the wear Minnesota to freight: and tear caused by an automobile. invest more Traffic Heavy trucks shorten the life span of dollars in conges- bridges, while trucks with heavy axle smarter tion. Es- loads damage roads. Most neighbor- ways for pecially in ing states and all Canadian provinces the publicly the metro region, trucks face signifi- allow heavier weights, larger com- financed infrastructure that allows cantly higher costs from delays than binations of freight trailers or both, timely, efficient freight movement do commuters, but they also contrib- putting Minnesota at a competitive and benefits the state’s businesses ute disproportionately to congestion. disadvantage. Minnesota has changed and individuals. As part of the Reducing congestion helps ensure some truck weight rules recently but Growth & Justice initiative on Smart has not addressed road and bridge SM that these higher costs don’t get built Investments in Transportation for into the costs of products produced or upgrades needed to handle heavier Minnesota, the report was shared consumed here. trucks. with legislators and officials at the Minnesota Department of Transpor- Interregional corridors. Nearly The News Tribune article identified tation, among others. 3,000 miles of IRCs link the Twin several important freight transporta- Cities, Rochester, St. Cloud, Fargo- tion challenges for the Duluth area, “Every day, Minnesotans rely on a Moorhead, Duluth and about 50 other including corrosion of the Twin freight system that uses roads, rails, communities. They constitute only Ports’ metal underpinnings, a lack of water routes and airways to transport 2 percent of Minnesota’s roadway facilities in Duluth that can handle consumer goods, mail, parts and miles, but account for almost 30 the transfer of containerized freight, equipment, crops, ore and timber to percent of the state’s vehicle miles the inability of locks serving the millions of destinations, tying Min- traveled and carry the majority of its Great Lakes to handle larger, more nesota’s communities to one another freight traffic. efficient ships, and obstacles on local and to the larger economies of the roadways linking Duluth’s port to region, the nation and the world,” major trucking routes.

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www.growthandjustice.orG Spring 2010 • 3 New policy briefs continued from page 1

For these latest policy guides, Transition to higher education schools, improve the atmosphere, Growth & Justice draws on themes • Reduce financial barriers to col- and better connect quality teach- from its 2008 report Smart Invest- lege access and success through ers to students. mentsSM in Minnesota’s Students, increased state investments in which highlights research-based, need-based grants. Grades 4 through 8 • Offer quality academic prepa- cost-effective strategies for improv- • Increase the knowledge that ing education, with the aim of in- ration that pushes students to students and their families have achieve their potential and aligns creasing by 50 percent the share of about options and financing for Minnesota students who successfully what they learn with the course- college and other post-secondary work they’ll do in high school. complete higher education. opportunities. • Provide support to students who “These short briefs on education High school need it – tutoring that ensures highlight smart approaches that Min- • Offer rigorous coursework at the their success and mentoring that nesota should implement,” said Matt high school level, coupled with better connects them to adults Kane, director of policy and research quality instruction and meaning- who can help. for Growth & Justice. “They arm ful assessments. policymakers with what they need to • Adopt evidence-based practices, • Establish social-support initia- know in order to frame the issues and programs and reforms to improve tives to mentor, monitor and craft policies that match up with the the quality of education for Min- assist students as a cost-effective principles of our initiative on smart nesota’s students. way to boost achievement and investments in Minnesota’s students.” graduation rates. Age 4 through grade 3 • Provide effective instruction in Recommendations from What We • Institute proven education re- SM early reading and math skills Know about Smart Investments in forms that establish small learn- using expanded preschool pro- Minnesota’s Students include: ing communities within high grams, small class sizes, and evidence-based approaches. • Increase family services and sup- New web video continued from page 1 port programs that involve parents. • Expand access to affordable, our status as an economic leader, and that high-quality preschool for chil- continued cuts in education now will have dren by age 4 through a state- dire consequences. “Every year 10,000 kids funded program that can meet the drop out of high school and it costs Minne- need for early education, espe- sota millions of dollars,” says one student. cially among at-risk kids. Eilers outlines how a 50% increase in Birth through age 3 post-secondary attainment for Minnesota’s • Improve needs-based access to students can be achieved by strategic investments in “what works at the best prenatal care and health care to price.” These programs include proven strategies that produce results from aid brain development. birth through college. This proposal aims to ensure that students are ready to • Increase home visits by nurses succeed at key points along the education continuum. “You know we need and other skilled staff to at-risk help,” say the students. “You know what works. I want to go to college.” families for education on health, nutrition, parenting and cognitive The new section of the website aims to summarize our Smart Invest- development. mentsSM in Minnesota’s Students investment proposal by answering three questions: Why should we invest in education? Where should we invest? • Expand public subsidies to low-in- How will Minnesota benefit from these investments? The pages describe come Minnesota families for high- the need for investment in human capital to ensure a strong business quality childcare as a cost-effective community, explain the four principals for guiding decision-making with approach to boost early learning. examples of successful cost-effective programs, and outline the benefits that these investments will hold for the state’s future. The policy briefs, which offer more detail on these recommendations and the rationale for them, can be down- Watch the video and take action today at loaded here. www.growthandjustice.org/gotocollege

4 • Spring 2010 Volume 12 A Smart Investment Agenda continued from page 1 college costs to prisons, and identi- group includes some of the state’s budget. Budgeting for Outcomes fied the most promising resources and most informed experts from asks public leaders to set the price institutions in the state and nation that citizens groups and the business of government, find out what could provide data and guidance on and nonprofit communities and outcomes citizens most value, pri- what to do next. expects to issue a report with rec- oritize their tax dollars to purchase ommendations later this year. those results, and rethink the way We are hardly alone on this front and • This legislative session we have their departments and agencies go as the budget crisis has magnified, about producing them. Our hope the cause has been joined by a host of been a resource for the new Rede- sign Caucus, a bi-partisan group is that candidates will make this a citizens groups, philanthropic founda- priority and will call on the Min- tions, and state and local leaders from of House and Senate members including co-chairs Rep. Paul Mar- nesota Management and Budget all parties and ideologies. We are department to be ready to imple- among the ringleaders in this move- quart (DFL-Dilworth) and Rep. Dean Urdahl (R-Grove City), who ment this process as soon as the ment, with these key activities in next administration takes over. recent months: are focused on launching as many reforms and cost-saving, service- This is complex and challenging • After writing several commentar- improving initiatives as possible. work, but it’s also righteous work, ies and blogs in praise of a strong Growth & Justice has testified at a appealing to Minnesotans of all politi- government redesign concept fi- Senate committee hearing in favor cal parties and most ideologies. It’s nanced by Minnesota foundations, of a number of Senate bills aimed always been in our Minnesota DNA to in a report entitled Minnesota’s at improving research, innovations insist on good government. Many of Bottom Line: Better Results for and collaboration toward reform us remember the legendary 1973 Time Dollars Spent, we joined the in state and local government. magazine cover headline “The Good Redesign Discussion Group. This • We’re working together with the Life in Minnesota.” Maybe not so panel’s mission, in the words of Minnesota Chamber of Com- many also remember that the headline long-time Citizens League leader merce and the group Ready 4 inside on the first page of the article and education reform advocate K to encourage all gubernato- was “Minnesota: A State that Works.” Ted Kolderie, is to “get the tops rial candidates to endorse using Our Smart Investment Agenda lays spinning” on multiple redesign a “Budgeting for Outcomes” out a plan to recapture that reality and and accountability fronts. The process in developing the state’s that reputation. Meet the newest members of the G & J Board of Directors

Bernie Brommer is past president Paul Redleaf earned his M.D. at was elected to the Minnesota House of the Minnesota AFL-CIO, serving Columbia University, followed by of Representatives at the age of 22. in that elected office from 1990 until an internal medicine residency at the He later served as House Minority he retired in 2001. He began his work University of Minnesota. He prac- Leader and as the first DFL Speaker career as an hourly laborer with the ticed internal medicine in Saint Paul of the House. Since 2008, Sabo has Minnesota Highway Department and until 1980, when he shifted gears served as a co-chair of the National later became a staff representative for and became a market-maker on the Transportation Policy Project of the the Minnesota State and University Chicago Board Options Exchange. Bipartisan Policy Center. For his Employees Union, AFSCME, Coun- He served in that role until 1990. work on acquiring funding for trans- cil 6, AFL-CIO. He also served as Redleaf has been a member of the portation projects and specifically executive director of Council 6 and American Civil Liberties Union since pedestrian and bicycling funding, the executive vice-president of the Min- 1954. His past and present board ser- Midtown Greenway bridge in Min- nesota AFL-CIO prior to his tenure as vice includes Jewish Family Service, neapolis was named the Martin Olav president. His past and present board Saint Paul Chamber Orchestra, and Sabo Bridge. service includes the Workers Compen- ACLU-Minnesota. sation Reinsurance Association, the Growth & Justice would like to thank Minnesota Self-Insured Security Fund, Martin Olav Sabo is a former board members whose tenure ended United Way of Washington County – United States Representative for in 2009: Peter Bachman, Sylvia Ka- th East, DeCare International and Delta Minnesota’s 5 congressional dis- plan, Mark Lacek, Jennifer Martin, Dental of Minnesota. He also serves trict, serving 28 years before retiring Jim McCorkell, and Tené Wells. We on the Executive Board of the Minne- from Congress in 2007. His career appreciate their service and wish sota State Retiree Council, AFL-CIO. in public service began when he them well. www.growthandjustice.orG Spring 2010 • 5 Roberta Walburn Campaign Fund of Wes Skoglund James E. Johnson Betsey Whitbeck & Jim Nelson Tony Carideo Robert M. A. Johnson Per & Elaine Wickstrom Citizens League Walter H. & Harriet W. Johnson Thank You Bert & Suzie Colianni Louis Johnston & Susan Riley Lucia Lahiff Crane Drs. Charles & Sally Jorgensen $250 & above Debbie Danielson & Steven Matt Kane & Liz Conway Johnson Ken & Elaine Kelash Anonymous Bill Davidson & Claire Olson Jay & Iris Kiedrowski 2009 Donors David Anderson Sharon & David Detert Dr. James A. Klein Peter Bachman & Janet Rice Caren Dewar Faye Knowles & Doug Muirhead Amy Blumenshine & Mike Joe & Genie Dixon Dag Knudsen The work of Growth & Justice Troutman Ron & Carolyn Drude Daniel Knuth Ben Brucciani Robert Dunn Paul B. Knutson would not be possible without Lynn Casey Terry Dwyer Ted Kolderie Mary & Bob Cecconi Rob & Janne Eller-Isaacs Thomas Laforce the support of a long list of Richard W. & Jean I. Clarke Arlen I. and Ellen M. Erdahl Cynthia Launer & Will Thomas Jay & Page Cowles Rondi C. Erickson & Guilford Robert & Eva Launer individual and foundation Cy & Paula DeCosse Lewis Barry Lazarus Gini Dodds Katherine S. Flom Tina Liebling & Mark Liebow supporters to whom we are James E. Dorsey Steven Foldes & Riv-Ellen Prell Diane Loeffler Barbara Forster Roger W. Franke Julian Loscalzo extremely grateful. Donald M. & Arvonne S. Fraser Doug Franzen & Pat Peterson Kimberly A. Lowe Lew Freeman Elizabeth L. Fraser Keith & Judith Luebke Karen J. Garvin Bill Frenzel Patrick & Judy Mandile GiveMN Allen Giles & Lisa Brosseau Jeanne Massey This list includes donations received in 2009 for an- Lucy & Jeff Heegaard Richard J. Graham Christopher McHugh & Cheryl nual gifts, Big Thinkers events, and the end of year Timothy Heaney & Roberta Hunt Marilee & Roger Griffin Smetana McHugh campaign. We apologize if we have inadvertently Chris & Valorie Jackson Peter Hakanson David & Karen Minge omitted your name. Please let us know by emailing Kathleen A. Kelley Jack & Grace Harkness Paul Moore [email protected]. Barbara Klaas William F. Hartfiel Jonathan & Martha Morgan Lenfestey Family Foundation Susan Hasti & Michael Friedman Anthony J. Morley David Lillehaug Samuel D. Heins Mary Morris Chris LaVictoire Mahai & Dan Monica Manning Patrick Henry Kate Mortenson $15,000 & above Mahai Jim McCorkell & Chris Greenhow Diane & John Herman Van D. Mueller Ross & Bridget Levin William C. Melton & Jane John F. 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Patricia Sullivan David & Debra Andreas Alan & Christie Ingram Roger Parkinson $500 & above Pamela Sveinson Ron & Joyce DeHarpporte Paul Iversen Larry Penk & Rosemary Tobin David D. Thomas & Jennifer Kim & Catherine Jackson Corwin & Doris Peterson Thomas C. & Marlene C. Kayser Anonymous Jewell Thomas Wayne Jennings Erik S. Peterson Joel & Laurie Kramer AFSCME Council 5, AFL-CIO Galen & Kim Vetter Pam Jewson & Pete Swenson Mark & Mary Peterson Peter Bell & Sharon Bottorff Curtis K. Walker Curtis W. Johnson Rebecca Phelan $2,500 & above Allan & Mary Lou Burdick Sharon & Bill Clapp Wendy & Doug Dayton Kelly & Maria Doran Steve Flagg & Mary Henrickson $100 & above Susan Haugerud Carol Freeman The Hayden Family Fund of the Anonymous (5) Major Grant Support Janice Gepner & Eric Newman Minneapolis Foundation Anonymous – In honor of Jewish Kathleen A. Jones Community Action $25,000 & above Bill & Pat Kelly AFSCME Council 5, Kathryn Klibanoff & Jeremy Edes $1,000 & above Amalgamated Local #2829 Pierotti Nancy Alsop Joel & Laurie Kramer • Emma B. Howe Memorial Elmer L. & Eleanor J. Andersen Bob & Nancy Anderson George A. Latimer Foundation Tom Arneson Becky Lourey Foundation, a fund of The The Ankeny Foundation, on Martha Ballou Mary S. McNellis behalf of Sally Anson James Bauck Jane Newman & Amy Lange Minneapolis Foundation John & Sage Cowles Jim Bernstein Michael & Kathleen O’Keefe Mark Dayton Herman J. Birnberg George & Sally Pillsbury Chuck & Carol Denny Marsha Blumenthal • F. R. Bigelow Foundation Fred & Gloria Sewell The Denny Fund of The David Bly Joyce Prudden & Michael Shoop Minneapolis Foundation Patricia Bratnober The William & Susan Sands Tim Flaherty Doug Britton & Nancy Odden • The Saint Paul Foundation Foundation of The Saint Paul Gegax Family Foundation Greg Brucker Foundation Mike & Barbara Goldner Stephen J. Bubul Orlando “Tubby” Smith • The McKnight Foundation Julie Bunn & Marlon Gunderson

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Matt Kane Director of Policy & Research

Jennifer Weddell Administrative Director & Policy Analyst

Mark Tundel Communications & Program Specialist

Fellows

Marsha Blumenthal Senior Economics Policy Fellow

Thomas Legg Policy Fellow

Michael O’Keefe Senior Policy Fellow

Charlie Quimby Senior Communications Fellow Meet the Growth & Justice Spring Interns Board of Directors Muna Anazodo has been a com- the University of Westminster. This was munications and outreach intern with followed by a spring semester on a spe- Marlana Benzie-Lourey Growth & Justice since February 2010. cialized European Union program. Fol- Bernie Brommer She completed coursework in econom- lowing the completion of her master’s Ron DeHarpporte ics at the University of Minnesota in degree in international and European Kelly Doran December 2009 and soon began intern- politics from the University of Edin- Arlen Erdahl ships with Growth & Justice as well burgh, Heidi worked for an investment Lew Freeman as the Charities Review Council in St. firm for two years in Scotland. Since Paul, MN. She hopes to go on to gradu- returning to the United States, she looks Heidi Gegax ate school this fall while continuing forward to becoming more involved in Thomas C. Kayser, Chair work on establishing a career within the state and federal public policy. Joel Kramer nonprofit sector that particularly relates Chris LaVictoire Mahai to women’s rights and economic and José Pacas recently began work as Ross Levin social equality. an education policy research intern Kim Lowe for Growth & Justice. He earned his Lee Lynch Heidi Hope has been working for bachelor of arts in political science Michael O’Keefe Growth & Justice as a public policy from Williams College in Massa- Erik Peterson intern since February. She has a bach- chusetts and is currently pursuing a elor’s degree in political science with master’s degree in public policy with Paul Redleaf minors in history and classics from concentrations in advanced policy Jorge Saavedra Gustavus Adolphus College in St. Peter, analysis and educational policy at the Martin Olav Sabo MN. During her senior year Heidi University of Minnesota’s Humphrey Tina Smith spent the summer and fall in London Institute of Public Affairs. His pri- Betsey Whitbeck interning with CAFOD, a member of mary interest area is higher education Caritas International, and studying at policy in the United States.