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Newsletter 11.05 Bd VolumeCENTER 3 FOR A PROSPEROUS,Nov. FAIR 2005 & SUSTAINABLE MINNESOTA ECONOMY BOARD OF DIRECTORS Sara Barrow Dan Cramer Ron DeHarpporte Arlen Erdahl David Foster BY JOEL KRAMER Lew Freeman Tom Gegax, Secretary t a series of round- Sylvia Kaplan table discussions Joel Kramer Creatingthis spring, Growth a New Economic Ross Levin & Justice asked David Lillehaug friends and stake- Lee Lynch, Chair Aholders,Agenda “What should we be for Minnesota Chris Mahai working on?” The answer that Tom McBurney popped up most often was “an Larry Meyer Martha Meyers, Treasurer overall strategy for Minnesota’s Michael O’Keefe economic future.” There is a lot Erik Peterson of good work going on in many Mark Ritchie policy arenas, people told us, but Jorge Saavedra what’s missing is a unifying story Tina Smith about our future, based on values Emily Anne Tuttle and principles that are shared by a In a series of roundtable discussions held this spring, Tene Wells substantial majority of Minnesotans. Betsey Whitbeck, Vice Chair more than 60 friends and advisers helped Growth & Justice select two new policy topics to study (see page STAFF That’s why, as we approach our third8 for an details).- policy research, the other on communica- niversary as a Minnesota economic policy tions. (Members of the steering committee EXECUTIVE DIRECTOR think tank, Growth & Justice has embarked and both teams are listed on page 3.) Joel Kramer on our most ambitious effort: Creating a New ASSOCIATE DIRECTOR Economic Agenda for Minnesota. • The Carl and Eloise Pohlad Family Foun- Lori Schaefer dation has pledged $75,000 for the effort, and we have so far raised about an equal RESEARCH & POLICY DIRECTOR We’re off and running. amount from individual donors. Angie Eilers • We’ve assembled a steering committee DEVELOPMENT DIRECTOR of a dozen community leaders – busi- Since the steering committee has not yet met, Amy Cram Helwich ness, labor and nonprofit; metro and it’s premature for me to guess precisely where rural; faith-based and secular; ethnically we’re headed. But I would like to tell you ADMIN & PROJECT ASSISTANT diverse. What they all have in common is a why we’re doing this, and how I hope we’ll Emily Saunoi-Sandgren willingness to think strategically about the go about it. role of government in creating a prosper- ous and just future for Minnesota, and a Why this project? willingness to attempt to reach consensus INSIDE on the agenda. In recent years, the political debate in Min- Creating a New Economic............................................. Agenda nesota has been driven by the assertion that for Minnesota ............... 2 • Many experts have agreed to serve on government growth was out of control, and Thanks you 2005 G&J Donors...................... 4 the project’s two advisory teams: one on that smaller government and lower taxes Tax Proposal Gains Traction...................................... 6 Meet the G&J Team 8 2324 University Ave. West, Suite 201 St. Paul, MN 55114 phone 651-917-6037 fax 651-641-7223 www.growthandjustice.org Continued from page 1 are necessary to ensure future economic we know this? Look to the 2004 legisla- tial majority of Minnesotans would eventu- growth in our state. tive elections and the scrambling even by ally embrace it, or some variation of it that Creating a New Economic Agendaanti-tax for politicians Minnesota to find new revenues in builds on the first stage of the effort. However, the assertion that government is 2005, regardless of what they chose to call growing rapidly is simply not true. Dur- those revenues, as evidence. What does the agenda ing the era when government was indeed look like? growing, the business community pushed Why, then, are the anti-tax Minnesota to adopt the Price of Govern- forces so politically potent? The New Economic Agenda will NOT be ment measure, which asks: How much are a 500-page plan resembling a state bud- Minnesotans paying in taxes and fees for There are many reasons, but one is that the get. It also will not be a one-page set of all state and local government services, as a alternative to an anti-tax agenda is not well platitudes that make everyone feel good but percentage of their income? Well, the price formed and well-articulated. This alterna- give no guidance about how to make tough of Minnesota government was more than tive cannot be an agenda focused primarily choices. It will include a values-based vi- 17.5 cents per dollar of people’s earnings on “More Taxes or Bigger Government.” sion, high-level goals for moving toward in the mid-1990s, and now it’s down to It cannot be an agenda of “Restore What’s that vision, and clear principles for how about 16 cents. (One cent difference today Been Cut.” And it cannot just be about to achieve those goals. Surely, the work of is worth almost $2 billion a year.) “Describing the Problems.” our steering committee cannot complete the conversation about how to do that. But if we can start a more strategic conversation, and get people to infuse that conversation into the political and civic process, good things will happen. Of course, such an ambitious effort in- volves risk. But how can we transform our political culture and build a better future The New Economic Agenda Project will create an if we don’t take risks? Such an ambitious effort also benefits from the involvement And actionablethe assertion that strategy,smaller government based onIt has a to set be a ofpositive shared vision forvalues, Minnesota’s of as many interested people as possible. and lowerfor investingtaxes are the wiselykey to economic in Minnesota’s future; one thatfuture. builds on our community’s As part of our work, we will try to better growth is flawed, because it’s only true strengths and aspirations and faces up to our understand the public’s views and concerns if all else is equal. But of course, if you short- and long-term challenges. It has to through polling and focus groups. Plus, we cut government spending, all else is not give people confidence that we know where intend to hold numerous roundtable discus- equal. You are investing less in education, we want to head, we will raise an amount sions around the state – please watch for in roads and transit, in parks and clean air of revenue the public can support, we will schedules on our website and sign up to join and water, and that hurts economic growth raise it fairly, and we’ll invest it wisely and the discussion. You can also contribute your at least as much as lower taxes might help cost-effectively to achieve clear goals on thoughts through forums we’ll offer on our it. In fact, many economists argue that the the path to the future we envision. website. And if you believe in what we’re key to Minnesota’s extraordinary growth doing, your financial support – at any level in per capita income, compared with the If we can lay out that kind of strategic – would be greatly appreciated. nation’s, over the last few decades of the framework, I am confident that a substan- 20th century was directly related to our high investment in education. Most Minnesotans know this in their gut. During the budget crisis of 2003, most fa- vored higher taxes as part of the solution. Today, most favor additional spending in such areas as education and relieving traf- Goals for the New Economic Agenda Project fic congestion. I’m not saying they want to return to the 17.9% price of government • that we peaked at in the mid-1990s. But Develop a policy agenda for Minnesota based on prosperity, they have clearly belted out the message sustainability, economic justice and fiscal discipline. that they could not tolerate what was hap- pening to our community as we descended • to 15.4% a couple of years ago. How do Articulate and communicate this agenda to help build a broad new majority in our state for progressive economic outcomes. 2 2324 University Ave. West, Suite 201 St. Paul, MN 55114 phone 651-917-6037 fax 651-641-7223 www.growthandjustice.org New Economic Agenda Project Participants Marcie Jefferys, Executive Steering Committee Director he Growth & Justice tation of social policy, particularly Center for Advanced Studies Growth & Justice Team Strengthens to Al Gallmon, Pastor team has expanded those policies designed to support on Child Welfare to support the New low-income children and their Fellowship Baptist Church, Brooklyn Park Jay Kiedrowski StaffEconomic New Economic Agenda families. Agenda Most Project , Senior Fellow Humphrey Institute for Public Project. Angela Eilers recently, she Jack Geller, Executive Director Affairs Twas hired to fill the open policy di- was the Director Center for Rural Policy and Development rector position at Growth & Justice. of the Children Dee Long, Tax and Incentives She will head G&J’s research and and Families Program Director, ME3 Vernae Hasbargen, policy efforts and serve as project program at the Legislative Director Nan Madden, Director manager. We have also contracted McKnight Foun- Minnesota Rural Education MN Budget Project part-time with Jodi Sandfort to fa- dation, where Association cilitate our New Economic Agenda she managed a David Morris, Vice President Jim Koppel, Executive Director Project steering committee meetings portfolio of $20 Institute for Local Self-Reliance Minnesota Children’s Defense and process. million in annual Fund Lee Munnich giving. Jodi has lead Jodiorganizational Sandfort , Director, State & Local Policy Program Joel Kramer, Executive Director Meet the newest members development efforts in small and Humphrey Institute for Public Growth & Justice of our staff: large nonprofits, facilitated nu- Affairs merous community meetings, and Gloria Perez-Jordan, Executive Myron Orfield, Executive Angela M.
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