State of Prosperity survey reveals bipartisan support for Blueprint proposals THINKING MINNESOTA ISSUE 1 JUNE 2015

Policy Blueprint American has impact at Experiment’s the legislature Young Leaders Mitch Council recruits the next Pearlstein generation of 25 years of thoughtful conservative conservative leadership leaders — a Q&A Kim Crockett on Big Government

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NOTE FROM THE CHAIRMAN ISSUE 1 H JUNE 2015

MARKING THE MILESTONES Over 25 years, Center of the American Experiment has evolved into a creative architect of market-based policy ideas. And the best is yet to come.

We’re launching substantive research and that transforming policy ideas into laws this newly updated analysis that reflects con- involves much more than good policy pa- version of Thinking servative principles without pers. The Blueprint was fashioned to be Minnesota at a time engaging in inflammatory a go-to resource for lawmakers as well as when we are celebrat- rhetoric. Our annual dinners the whole community of policy interme- ing two significant have hosted a Who’s Who diaries—lobbyists, activists, professional milestones in the roster of conservative lead- associations and business organizations. progress of Center of ers, writers and speakers, The Blueprint’s real influence will result the American Experi- including Lady Margaret from building working coalitions of orga- ment. The Center’s 25th Thatcher and President nizations with common policy goals that anniversary this year George H.W. Bush. And, will combine their ideas and their Rolo- gives us an oppor- while managing all this, dexes to build support for new policies tunity to look back Mitch earned a reputation with great satisfaction as one of America’s premier and no small admi- intellectual experts on fam- The Blueprint’s real ration for how Mitch Tom Kelly ily fragmentation and also Pearlstein conceived managed to write upwards influence will result from American Experiment of a half-dozen books. building working coalitions and developed it into an elite regional Over the last year, the Center prepared of organizations with think tank. And we are enthusiastic about and published The Minnesota Policy building upon the recent Minnesota Blueprint: Prescription for Prosperity. common policy goals. Policy Blueprint to deliver even more The Blueprint is a package of wide-rang- relevant, free-market, conservative policy ing policy recommendations prepared alternatives to some of the discouraging by our staff and some outside experts, in Minnesota. That’s why we took such nonsense we regularly see in St. Paul. emphasizing personal initiative, free en- pains to be so inclusive as we researched, Mitch first conceived of the Center terprise and a limited, frugal but effective prepared and released each of the papers in 1987 from his office in the office of government. It provides a diverse, rele- that eventually became the book. research and improvement at the U.S. vant menu of legislative proposals that This coming year we’ll expand that Department of Education. With the entre- collectively constitute a comprehensive process. Watch as we take our ideas on the preneurial zeal and intellectual grit that and thematically consistent initial agenda road. We’re talking to policymakers and we’ve come to identify with Mitch (not for building a culture of prosperity in intermediaries about ways to get out into to mention 17 fund-raising trips between Minnesota. We published a book contain- communities to advocate for the policies Minnesota and D.C., mostly self- ing those recommendations just in time in the Blueprint, to improve our recom- financed), Mitch was able to finally for this year’s session of the legislature. mendations and identify ideas to advance launch American Experiment in 1990. Its impact in 2015 exceeded our expecta- a culture of prosperity in Minnesota. Along the way, the Center has always tions, as you’ll see on page 7. I think we’re making a difference. I maintained its reputation for objective, The core idea behind the Blueprint is hope you agree.

1 JUNE 2015 THINKING MINNESOTA THINKING MINNESOTA CONTENTS Building a Culture of Prosperity Center of the American Experiment’s mission is to build a culture of prosper- ity for Minnesota and the nation. Our daily pursuit is a free and thriving Min- nesota whose cultural and intellectual center of gravity is grounded in free en- terprise, limited government, individual freedom, and other time-tested Amer- ican virtues. As a 501(c)3 educational organization, contributions to American Experiment are tax deductible.

STAFF Mitch Pearlstein, Ph.D. Founder & President Kim Crockett, J.D. COO, Executive Vice President & General Counsel 3 Peter Nelson, J.D. Director of Public Policy THE AMERICAN EXPERIMENT’S MITCH PEARLSTEIN Kristen Sheehan The Center’s founder recalls the Center’s earliest days, its ongoing triumphs, Development Director its occasional challenges, all with a look to the future. Samantha Peterson Deputy Development Director 1 - NOTE FROM THE CHAIRMAN Dwight Tostenson Chief Financial Officer Peter Zeller Director of Operations

Thinking Minnesota is published by Center of the American Experiment 8441 Wayzata Blvd., Suite 350 Golden Valley, MN 55426 5 7 9 10 Phone: (612) 338-3605 TESTING POLICY NEXTGEN FINAL WORD © 2015 Center of the American Experiment THE WATERS ARCHITECTS The Young Bigger The State of The Minnesota Leaders Council government = All rights reserved. Reproduction Prosperity Policy Blueprint develops the smaller citizens. encouraged after obtaining permission from Center of the American delivers a state- exerts wide and next generation Just look at Experiment. Contact Peter Zeller wide survey. deep influence in of Minnesota’s Minnesota. at (612) 338-3605 the deliberations conservative of the 2015 leaders. Custom Publishing by legislature.

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THINKING MINNESOTA JUNE 2015 2 Building a Culture of Prosperity

Q&A

American Experiment’s MITCHPEARLSTEIN The Center’s founder recalls the Center’s earliest days, its ongoing triumphs, its occasional challenges, then looks to the future.

When did you conceive the something about think tanks when concept of Center of the I was on the editorial page at the American Experiment? Pioneer Press in the mid-1980s. In early October of ’87, I had The Heritage Foundation used to a chance to go to Washington to send publications as well as people work in the U.S. Department of to visit me. And when I later lived Education and for an assistant in Washington I spent a fair amount secretary by the name of Chester of time there, which was just a (“Checker”) E. Finn, Jr., who by 10-minute walk from my office. my lights was the top education Heritage served as the secretariat scholar in the United States at the back then for state-based think time. But after a short period of tanks, helping these organizations time, I realized I just didn’t want to along. When American Experi- be in that bureaucracy. So I started ment finally opened up, there were thinking of ways of getting back to something like 15 or 16 across the Minnesota. country. Now every state has at About a half-year later I was least one free-market and conserva- talking with Sen. Dave Durenberg- tive think tank. er and he said, “You keep talking But prototype? Not really. Most about this [the Minnesota-based state-based think tanks were and re- think tank]. You have to write a main overwhelmingly animated by prospectus.” I said he was right economic matters, not that Amer- and I did. I wound up making 17 ican Experiment wasn’t also in- trips back to Minnesota, much of volved with them, as we very much it on my own dime, raising money were and are more so all the time. and organizing a board of directors. We Were there any state-based or A year after we opened up, for example, finally had enough in the till—which is regional think tanks that served we hosted the likes of Michael Novak not to say very much—and opened up in as a prototype for the Center? and Pete du Pont in an all-day conference March of ’90. Coming back to Minnesota There were more state-based conser- titled, “Freeing the Free Market: Making was one of the wonderful moments of my vative and free-market think tanks at the Minnesota the World’s Newest Capitalist life. time than people might imagine. I learned State.” But it’s certainly true that I was

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particularly interested in questions of edu- They’re not going to go to events in D.C.” right out of the gate. We were legit. cation, families, culture and the like right He made a $25,000 challenge pledge and The greatest all-time, single moment from the very start. when we finally matched it in early 1990, remains when Margaret Thatcher keynot- it was one of the great moments of my ed American Experiment’s 1997 Annual Did this focus on social life. I knew I was coming home. Dinner and the two of us were up on the issues hinder your ability to dais (along with a few others, I vaguely raise money? What are a couple of early recall) singing our two national anthems. If I had to guess, I’d say probably, but successes that told you the “Dang,” I said to myself through the I wasn’t aware of it at the time. I want- Center was here to stay? goose bumps, “We done good,” or some- ed to deal with the most sensitive and The very first thing we ever did, in thing a tad crisper. Colin Powell keynoted elusive problems facing Minnesota and 1990, was a day-long conference called the dinner the following year. And two the nation, not just tax or fiscal issues. But “The New War on Poverty: Advanc- years later it was Mikhail Gorbachev. very importantly, when you say social issues, that didn’t What’s the backstory to mean abortion. About a year Gorbachev? before we opened up, I asked Stan Hubbard made the someone—a smart local polit- recommendation. With all due ical adviser—how we might respect, I thought he was out deal with abortion. He said, of his mind, and the Board of “Don’t worry. It’s not going Directors said no the first time to come up.” I said, “You’re around. But then I got a letter crazy,” or words to that effect. one day from Stan, which said “It’s a profound issue here he was aboard Steve Forbes’ among conservatives. How yacht with Lady Thatcher, and could it not come up?” He said, that Lady Thatcher herself “You’re not running for office. said American Experiment It’s not going to come up.” And should get Mikhail Gor- he was absolutely right. I could bachev. Done deal. go years without being asked Pearlstein calls the visit from Margaret about abortion and still can. Thatcher the Center’s “greatest all time What’s your proudest personal It became one of the great fascinations single moment.” accomplishment here? in the early days of the Center. Many peo- When I say it is hard to limit it to one, ple on the right clearly wanted a demilita- ing Forward This Time.” It was Peter it is not to be boastful. There are different rized zone when it came to abortion and Bell’s idea. Peter was one of the original arenas. I started writing books too late in we were it. founders with me, along with Kathy my life. But I was reasonably busy with Kersten, Mark Larson, Steve Young, other things earlier on. I am very proud of Among your early supporters, and Ron Eibensteiner. We invited major some of the books I’ve written. There is who stands out most? players—Charles Murray, Linda Chavez, something weighty and important about a Marv Schwann, overwhelmingly. Bob Woodson, Larry Mead, and Sal- book as opposed to a handful of columns Marv was Schwann Sales Enterprises, the ly Kilgore, with Checker Finn as the or reports. home-delivery ice cream and pizza folks keynoter. More than generously, they all From the beginning, I said we would out in Marshall. Marv had many, many agreed to come out here just for expenses. stay clear of all internecine and intramural dollars, but he didn’t flaunt them in the I later found out (goes the story) that they battles between various strains of conser- smallest way. When I finally got to meet all originally agreed because they didn’t vatism—between paleoconservatives and him in 1988 or early 1989, he asked the think we’d be able to pull the conference neoconservatives, religious conservatives great question, for which I was prepared. off. We did. There were 300 people in the and main street conservatives, and so on. He said, “I give to the Heritage Founda- audience. Bill Raspberry wrote a wonder- And I really meant it. But I figured that tion and other organizations. Why should I ful, syndicated column about Checker’s after some number of years, one side or give to you?” And I said, “Because we’re great speech, leading to 2,000 requests another would prevail and I’d get purged. here. People will come to events here. for it. That was a very important moment, continued on page 9

THINKING MINNESOTA JUNE 2015 4 Building a Culture of Prosperity

STATE OF PROSPERITY SURVEY

TESTING THE WATERS American Experiment’s public opinion survey finds Minnesota hostile to a gas tax increase, favoring spending restraint and wary of financially unstable public pensions.

As Minnesota’s legislators how much lawmakers can proceeded through the final Voters say they would like to use the existing increase state spending, such as days of their 2015 session, sales tax revenue, before raising the gas tax. limiting the growth in spending Center of the American Exper- to the growth in inflation or per- iment released a public opinion % Raise Gas Tax/Use Existing Sales — By Party sonal income (36 percent strong survey that revealed, among support, 27 percent somewhat 79% other things, that a biparti- support). This idea enjoyed 68% san majority of Minnesotans 65% the broadest support of all the 50% staunchly rejected the notion of 45% issues tested, cutting across all a statewide gas tax increase by demographics: 76 percent from 29% a whopping two-to-one margin. 24% Republicans, 65 percent from Minnesotans also appeared to 14% Independents, and 53 percent be surprisingly unified on issues Overall Republicans Independents Democrats from Democrats. related to the budget, health -36 -65 -44 -5 “Minnesotans expect lawmak- care, and state pensions, perhaps Raise Gas Tax Use Existing Sales Tax ers to spend tax dollars respon- explained by their perception of sibly,” said Peter Nelson, the the state’s improving economy. Center’s director of public policy. This first-ever State of Prosperity sur- “But policy-makers also benefit from “So it’s not too surprising that people vey was conducted by Rob Autry, one of knowing how concepts resonate with across the partisan divide support setting the nation’s leading pollsters and research the public.” The State of Prosperity did reasonable limits on spending.” strategists. His Charleston, SC-based firm, exactly that, he said. Transportation: A whopping 94 Meeting Street Research, interviewed 500 The survey earned lead editorials in percent of Minnesotans favor public registered voters statewide by telephone both the St. Paul Pioneer Press and the spending on modernizing and expand- (30 percent by cell phone) between April Minnesota StarTribune. ing aging roads, highways, and bridges. 26-28. This survey has a margin of error Among other things, the State of They overwhelmingly favor funding of plus or minus 4.38 percent. Prosperity survey revealed the following improvements through use of existing The survey was created to supplement results: sales tax revenue (65 percent) over the abundant success of the Center’s Spending: Minnesotans oppose using raising the gas tax (29 percent). “This Minnesota Policy Blueprint, a wide-rang- the proceeds of the state’s expected $1.9 is telling data,” said pollster Autry. Re- ing anthology of market-oriented policy billion budget surplus to fund new or publicans overwhelmingly reject the gas recommendations published in January. expand existing government programs. tax (79 percent to 14 percent), but so did “The Blueprint did an outstanding Only 13 percent favor such spending. Independents (68 percent to 24 percent). job of laying out a conservative agenda Voters would rather see the surplus saved Attorney Fritz Knaak, a former state for legislators,” said Tom Mason, the for a rainy day (39 percent) and used to senator and coauthor of the Blueprint’s consultant who conceived and managed cut future taxes (38 percent). On top of chapter on transportation, said the over- both the Blueprint and the State of Pros- this, there was deep bipartisan support whelming support for prioritizing trans- perity survey on behalf of the Center. (64 percent) for the notion of limiting portation funding “is the key takeaway

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from this, particularly when coupled with such a consistent opposition to gas tax funding. It’s clear that Minnesotans expect their leaders to find the means within the current revenue sources to get the job done.” Health Care: When asked to name BOARD the ONE thematic solution that best contains the rising costs of health care, Minnesotans dramatically favor in- OF DIRECTORS creased competition in health insurance (59 percent) over single-payer health OFFICERS care in which all Americans would get Chairman & CEO Secretary their health insurance from one health Thomas O. Kelly, III Mark S. Larson plan that is financed by taxes (35 per- Attorney, Dorsey & Whitney Attorney, Messerli & Kramer President Treasurer cent). Mitch Pearlstein Scott Rile Said Nelson: “Various laws on the Principal, Bernstein Global COO, Executive Vice President Wealth Management books stifle value-enhancing competi- & General Counsel tion in health care markets, but it’s not Kim Crockett always clear whether the public under- stands this fact. It’s good to see that BOARD MEMBERS Minnesotans appreciate how competi- Edward C. Anderson Jack Lanners tion can improve health care, just as it Forthright Solutions F.T.L. Corporation improves so many other things in our Tara J. Anderson Rick Leggott Fafinski Mark & Johnson Arbor Capital Management daily lives, like phones, cars and the Michael E. Barry Richard G. Morgan restaurants we frequent.” Twin City Fan Companies Bowman & Brooke Public Pensions: A majority (51 Molly Corrigan Cronin Kenneth W. Morris percent) of Minnesotans thinks that the The Apercu Group Mitchell Davis financial insolvency of the state’s sys- Davis Family Holdings Andrew M. O’Brien tem of public pensions poses a potential Trean Corporation & Benchmark Peter Dahl Insurance Company future problem. Nearly two-thirds (64 Crown Bank Rick Penn percent) think public employees should Ron Eibensteiner Hutchinson Technology Wyncrest Capitol, Inc. transition to a kind of 401(k)-style pen- Scott F. Peterson sion system that is commonly used by Carolyn Erickson Schwan Food Company CSM Investments private sector employers. Ted Risdall John Gibbs Risdall Marketing Group “Bringing the public sector into line Comcast with the private sector has many vir- Brent Robins Bill Guidera General Mills tues,” says the Center’s executive vice 21st Century Fox Thomas J. Rosen president Kim Crockett, long a leading Michael Hayden Rosen’s Diversified, Inc. advocate of pension reform. “Besides Martha M. Head Kurt Schellhas offering fully funded, mobile retirement Ceann Company Center for Diagnostic Imaging assets to young employees, it ends the Lowell W. Hellervick Ronald Schutz unsound practice of taking on new, Omni Leadership Robins, Kaplan, Miller & Ciresi unfunded liabilities that are guaranteed Scott M. Honour Chuck Spevacek FirstCNG Meagher & Geer, P.L.L.P. by taxpayers. This makes it more likely Robin Norgaard Kelleher Bruce Taher that we can fully honor the promises we Seaton, Peters & Revnew Taher, Inc. have already made, but not fully funded, Keith Kostuch Erik Torgerson to retirees and long-time employees. It Northwest Equity Partners also takes the backroom politics out of retirement savings and investments.” H

THINKING MINNESOTA JUNE 2015 6 Building a Culture of Prosperity

MINNESOTA POLICY BLUEPRINT

POLICY ARCHITECTS The Minnesota Policy Blueprint exerts wide and deep influence in the deliberations of the 2015 legislature.

Last summer and fall, American Experiment developed The Minneso- ta Policy Blueprint: Prescription for Prosperity, a set of wide-ranging policy recommendations for state lawmakers that it published as a book in the early days of the 2015 legislative session. “This is a long-term project,” said Peter Nelson, the Center’s director of public policy, who edited the book. “It will take more than a few legis-

At the Capitol: lative sessions before the Center’s Peter Nelson, the recommendations are fully debated, let Center’s director of public policy alone passed into law. That said, we’re and Kim Crockett, pleased that lawmakers gave serious its executive consideration to a large number of pol- vice president icies that conformed with our recom- mendations.” Here are the highlights from the leg- islative session: Taxes: Since the House and the Sen- unspent which will be available for tax amount and phased out the statewide ate could not come to agreement on a relief next year. Two important Blue- property tax on business and recreational tax bill, the session ended without reduc- print recommendations were adopted property. Importantly, these issues also ing taxes, despite a $2 billion surplus. in the House omnibus tax bill. It raised received favorable treatment from some However, lawmakers left over $1 billion the estate tax exemption to the federal DFLers in the Senate.

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Transportation and Metropolitan Healthcare: The House health and Pensions: Some progress, however Council: Light rail did not receive any human services bill largely followed the small, was made to improve the current state funds and the metro area tax for Blueprint’s recommendation to convert defined benefit pension plans by, as transit failed to pass. This comes on the MinnesotaCare (the state’s public health the Blueprint recommends, using more heels of the news that Southwest light care program for working adults and realistic assumptions for pension math. rail is going to cost $2 billion, a develop- families) into a premium subsidy pro- With the exception of the Teachers ment that caused an uproar near the end gram that empowers enrollees to afford Retirement Association, pension funds of session. As the Center’s recent poll individual health insurance. Though this adopted a new, more realistic assumed reported, Minnesotan’s want roads and conversion did not find agreement in the rate of return of 8.0 percent. While this bridges funded with existing tax reve- Senate, provisions to increase cost sharing assumption, also used to calculate un- nues, not new taxes. This is exactly what in MinnesotaCare making enrollees more funded liabilities, is still indefensible, it the Blueprint recommends and the posi- responsible for their care were signed is a move in the right direction. But it is tion the House continues to hold. There just a Band-Aid. Pensions will continue were not any substantial changes to the posing a financial threat to the state until Met Council, but the House formed a they fully fund their promises and move new subcommittee on the Met Council “This is a long-term to a defined contribution model. which began hearings that will continue project,” said Peter Nelson, over the summer. A number of House the Center’s director of State Spending: The budget grows bills already passed in committee follow by about $500 million over the base Blueprint recommendations to give local public policy, who edited spending level, which is about $1 billion elected officials and the legislature more the book. “It will take more more than the House proposed and $1 control over the Met Council. than a few legislative billion less than the Senate and governor proposed. Any increase in spending is Education: The House tax bill would sessions before the Center’s too much, considering the state’s already have also increased the current edu- recommendations are high tax burden. However, one bright cation tax credit and allowed it to be fully debated, let alone spot is that spending on health and applied to tuition for private schools, passed into law.” human services is reduced by $300 mil- an important element of the Blueprint’s lion. The Blueprint’s recommendation school choice recommendations. Again, to adopt a Legislative Budget Office to no agreement was reached on a tax bill estimate spending and revenue impacts and so the education tax credit remains into law. There was also an agreement to of proposed legislation received a strong as is. A number of other important allow people to purchase health insurance endorsement from both Senate Majority bills to promote school choice were outside MNsure with tax credits through a Leader Tom Bakk and Speaker of the discussed or heard in committee but federal waiver, which is an important first House Kurt Daudt. Though their bills were not included in a final agreement. step to bring more options and flexibility never became law, there may still be While the governor has already vetoed to the health insurance market. Addition- opportunities to implement the policy on the education bill, which raised spend- ally, a bill to allow employers to fund a smaller scale without it. ing $400 million, the House and the individually-owned and portable health “The Blueprint became a great re- Senate did agree to improve teacher plans, a lead Blueprint recommendation, source for lawmakers this session,” said licensure to give a level of reciprocity was introduced with bipartisan support in Kim Crockett, the Center’s executive to teachers who have earned licenses both the House and the Senate. vice president. “Whenever we visited in different states. They also agreed to the Capitol, we would see individual increase funding for preschool scholar- Energy: A number of Blueprint chapters, the Summary, and copies ships by $30 million—a recent exam- recommendations were passed by the of the book in offices and conference ple of how private school choice can House, including provisions to dramati- rooms. More importantly, our ideas work—and provided for an additional cally improve the state’s energy efficien- appeared in dozens of bills proposed $30 million for school readiness, com- cy program and renewable energy stan- during the session. We were thanked pared to Governor Dayton’s demand dard. These provisions were removed over and over for providing research and to push all four-year olds into public in conference committee and, in the end, ideas—and asked for lots of copies for schools. the governor vetoed the entire bill. members during the session.” H

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continued from page 4 That hasn’t happened. I’m very proud that the Center always has been home to a variety of voices on the right, which has been very much on purpose. More personally, beyond the per- NEXTGEN sistence, grit, and refusal to give in, I had a concern I would have a particular- The Young Leaders Council develops the next generation ly hard time moving quickly from one of Minnesota’s conservative leaders. type of chore to another in the course of a day: from writing, to fundraising, to managing, back to writing. I didn’t know if I had the concentration, but I Local attorney Tara Anderson will chair ing co-chairs: guess I do. the Young Leadership Council (YLC), • Jen Niska, director of admissions at Center of the American Experiment’s new Bethel Seminary. She was also a commit- What’s the next big group aimed at developing Minnesota’s tee legislative assistant at the Minnesota priority for you? next generation of conservative leaders. House of Representatives, and office I’ve been focusing on expanding Anderson, 32, is currently the youngest director for the Tom Emmer for Governor educational freedom and strengthening board member at American campaign. She has a B.A. families, more specifically on reduc- Experiment. A graduate of from Sioux Falls College, ing family fragmentation, and that will the law school at the Uni- an M.A. from Sioux Falls continue. People have said I’ve made a versity of St. Thomas, she Seminary, and an Ed.D. from contribution, especially when it comes to practices in the corporate Bethel University. putting matters of fragmentation on the and commercial aviation • Ben Wilmoth, most table, and I think I have. But that doesn’t transaction groups at recently at Target, worked mean actual numbers have changed Fafinski Mark & Johnson, in the White House from much. I have no illusions that any one an Eden Prairie-based firm. 2004-2009, where he served person or any one organization can cause She is also a go-to activist as executive assistant to the big shifts in this area. But I’m compelled for candidates who want to President’s chief of staff. He to continue focusing on questions of improve their connections earned a degree in politi- family breakdown, specifically in terms with young professionals. cal science from Lafayette of taking greater ameliorative advantage The YLC, she says, College and an MBA from of our religious traditions. will introduce young the Kellogg School of Man- professionals to the Center agement at Northwestern Are there days when you’d like through quarterly events University. to sit back and watch more that combine social net- Tara Anderson • Anne Yoder, a commu- football? working and a forum to nications executive at Clear- I’ve always wanted to just sit back discuss free-market ideas way Minnesota, has com- and watch more football! I don’t have and conservative policies. munications experience that includes the same managerial responsibilities I The YLC was initiated by the Cen- work in the Washington, D.C. office used to have, for which I’m enormous- ter’s development committee chair Ron of Congressman Mark Kennedy, the ly thankful. My main focus these days Eibensteiner, who says “Conservative office of the U.S. Treasury Secretary, is writing and advocating in assorted leadership is too often equated with polit- the National Republican Congressional ways, very much including speaking, for ical involvement. They are not the same Committee, and the Humphrey School which I’m likewise grateful. My health is thing. Policy matters most. We spend too of Public Affairs at the University of good, and at 67, I suspect I may be more little time nurturing our next generation Minnesota. She interned in the White than halfway through my career. This is of conservative thought leaders. The YLC House political affairs office under Ken making me increasingly alert to the need will do just that.” Mehlman. She has a degree in political of making good and concerted use of Anderson will be joined by the follow- science from Drake University. H remaining decades. H

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FINAL WORD Bigger government = smaller citizens. Just look at Minnesota.

I like to say that Dennis from private charity and the sions. Education Minnesota, AFSCME Prager is my Rabbi. When church, from private sector and SEIU have bargained for pay and I am eating lunch, I often investments that grow the benefits that are tough to match in the listen to his radio show. economy and good jobs. private sector. The kicker is that the state One of Prager’s best lines If you look at spending deducts mandatory dues for the unions. is “The Bigger the Gov- in Minnesota, and how This gives union leaders and their allies ernment, the Smaller the entitlement and education an outsized influence, leading to warped Citizen.” I liked it so much spending has ballooned results that most Minnesotans reject, that I put a bumper sticker since 1960, you would even many union members. with the phrase on my car. expect a drop in poverty Case in point: Gov. Dayton’s push to Why? Because I want to and a big increase in edu- force the unionization of private sector encourage people who get cational achievement. But in-home daycare owners and in-home the results are devastating, health care aides (often a family member it—and make others think. Kim Crockett Our nation and state are particularly for black Amer- of the disabled person). The goal is to terribly divided, making icans, though all Americans take over the daycare and home health it hard for people to talk to one another are experiencing increasingly high rates care sectors. about important things—let alone work of family fragmentation, and all the This also explains why Dayton is together to solve big political and cultural attendant social problems documented demanding that we send all four year- problems. Our inability to solve big by Mitch Pearlstein in Broken Bonds: olds to public school: it creates jobs for problems will undermine our confidence What Family Fragmentation Means for Education Minnesota and other public in the democratic process itself, leading America’s Future. sector unions. This grab for our chil- to the conclusion that we are not capable Since 1960, after adjusting for infla- dren will put private nursery schools of self-governance. That this American tion, spending increased from $8 billion out of business, and pressure parents to Experiment was doomed to fail. It is to $62 billion in 2012, a 667 percent send children to “school” before they only doomed if we give up our duties increase. And these figures do not are ready. as citizens, which means identifying the include the spending increases under the Is this the Minnesota we want? problem and then working for a solution. Dayton-Smith administration. I did not write this to discourage The growth of the state and the The bulk of our tax dollars now go to you. On the contrary, I wrote in hopes breakdown of our cultural institutions welfare and education with a small per- that this information would fire you are directly related. The more we grow centage devoted to core functions like up, and lead you to ask, “How can I the state, the less Americans seem able roads, public safety and the courts. The help?” Please pass this newsletter on to handle every day matters like getting a state, local and federal government are to a friend, tell people about the Center job, getting and staying married, raising a by far the largest employers in Minneso- and our good work. We can restore our family, saving for retirement, growing old ta, dwarfing the private sector. confidence in the American Experiment with grace and dying well. The growth How did this happen? One of the if we can start to solve big problems. of entitlements allows us to socialize the primary reasons is public unions. And if you see an old Volvo headed cost of failure—making it someone else’s The public union agenda has grown toward St. Paul, please honk if you like problem. We have shifted dollars away to dominate budget and policy deci- my bumper sticker. H

THINKING MINNESOTA JUNE 2015 10 NON-PROFIT ORG U.S. POSTAGE PAID TWIN CITIES, MN PERMIT NO. 4546 Building a Culture of Prosperity 8441 Wayzata Blvd., Suite 350 Golden Valley, MN 55426 AmericanExperiment.org

What is a culture of prosperity? To us, prosperity includes a wide variety of benefits and opportunities that help Minnesotans – all Minnesotans – achieve a rich and fulfilling life. Economic success is only part of it.

• It means enabling Minnesotans to raise their families in a safe, healthy and fulfilling environment.

• It means creating opportunities and incentives for self-fulfillment and personal enrichment.

• It rewards hard work, personal responsibility and individual initiative.

• It means access to jobs – well-paying jobs.

Minnesotans believe in work. They know that quality jobs are the foundation that sustains our culture and our economy. Work contributes to the sense of dignity and self-reliance that is the best-known antidote to entrenched poverty. With that in mind, our policy recommendations emphasize opportunity, value in government, innovation, and a full appreciation for the job-creating power of entrepreneurs.