SPRING 2015 VOLUME 22 MAKING PROGRESS AGAINST TAX REGRESSIVITY ver the last two years, local taxes than those in the middle O Minnesota has made more prog- and bottom. And despite the widely ress than any other state in reducing acknowledged national crisis of the regressivity of growing overall eco- the state-and-local STATE & LOCAL TAX PER DOLLAR OF nomic inequality, tax IN THIS ISSUE tax system, accord- INCOME 2012 VS. 2017 regressivity in most ing to a Growth & states actually wors- 1 Making progress against tax Justice report au- ened over the last two regressivity thored this spring years. Minnesota was Competitiveness depends on by Policy Fellow one of just 10 states 1 workforce equity Jeff Van Wychen. that bucked this trend, reducing regressivity 1 North Star Summit Our report, and climbing from the “Minnesota’s 16th to 7th least regres- 2 From the President Progress Against sive state, the Growth Regressivity,” & Justice report shows. Rural Partnerships Gaining shows what ex- 3 Broad Support perts have long The sobering context, known, that as many have ob- Inequality Trends in Minnesota: almost every state has slightly to served, is that Minnesota’s tax system 3 A County-Level Analysis woefully regressive tax systems. remains regressive. Households in This means those at the very top the very top income brackets con- 6 Thank you 2014 donors! income levels pay a smaller per- tinue to capture a disproportionate centage of their income in state and share of economic growth and an continued on pages 4 & 5 COMPETITIVENESS DEPENDS ON WORKFORCE EQUITY NORTH STAR SUMMIT rowth & Justice is in strong The Twin Cities, despite robust ore than 250 people gathered agreement with the main job growth overall in recent at the Minnesota History Center thrustG of a recent policy brief by years, ranks just above Detroit M in early December for the the highly regarded business-led and St. Louis, or 23rd among 25 North Star Summit, which focused Itasca Project: major metropolitan areas, in the on the future workforce needs of our employment rate gap between state and how to best address them. “Our regional competitiveness white workers and workers of Growth & Justice, the Minnesota depends on broadening oppor- color. The Itasca Project’s report Senate, and the Citizens League led tunities for a more diverse and is directed at private-sector man- the planning of this event, which inclusive workforce.” agers and employers themselves, included many co-sponsors, including and it implores them to acceler- the Minnesota Chamber of Commerce, “Depends on.” Not “would im- prove with” or “might be better the Minnesota Business Partnership, with.” making personal commitments, Minnesota Education Equity atesetting diversification goals and making efforts, and by Partnership and the Bush Foundation. By 2040, about 40 percent of our implementing plans for a more Twin Cities metropolitan area inclusive workforce. The summit featured an extended workforce will be people of color, conversation with metro-area DFL and our state and region will not Growth & Justice is keenly fo- Sen. Terri Bonoff, the chair of the stay strong economically with cused on identifying and sup- Higher Education and Workforce the current racial disparities that porting public policies that Development Division of the Senate exist in employment and educa- advance workforce equity. We Finance Committee; Sen. Jeremy tion attainment. helped capture public atten- Miller, a Republican business owner tion and bipartisan resolve from Winona who is earning a continued on page 4 continued on page 5 SPRING 2015 otherwise ally with our work have FROM THE PRESIDENT helped turn both the tide of public all over the important details opinion and the ship of state picture,of new laws our fingerprintsand policy in are in Minnesota. Through timely Minnesota. Recommendations research projects and reports, and from our special projects on presentations to groups from one rural education partnerships and end of the state to the other, we workforce equity, in particular, have changed the dominant public policy narrative. books. (See more details on these aretwo finding projects their elsewhere way into in statutethis One recent example is our newsletter). “Equity” op-ed, which landed on the cover of the Sunday Star Progress toward equity is Tribune Op-Ex section on March underway but much more needs 27. The article describes the to be done, and progress made Dane Smith recent ascendance of the word “equity” in public policy discourse, defended. Our recent report on t Hamline University’s and the wrong-headed pushback alwaysMinnesota’s needs success to be fiercely in reducing Community Economic against it. We argue further that tax regressivity is an example DevelopmentA Symposium in this word is not just trendy, but of progress, while our report May, we were asked to be the that it is the very best word to on inequalities within the state, describe policies that invest county-by-county, shows that we Minnesota policy leaders. We were in human capital and human still have far to go. (See articles firstcharged presenter with providing on a panel an of opening five potential, and that build assets on both those reports in this overview of economic inequality for families and individuals on the newsletter). in Minnesota and how that relates wrong side of widening inequality. to workforce needs. We humbly and earnestly seek Striving for economic fairness and your continued attention, your I began our presentation by noting racial justice is righteous work, a that if you search the internet for form of civil rights advocacy for “Inequality in Minnesota,” links which Minnesotans can be proud. financialwin more support hearts and and minds your in to our work pop up near the top We Minnesotans have a legacy of unflaggingMinnesota for efforts an equity to help agenda. us of the page. I asserted that we more than 150 years of leadership had become “the keepers of the on this cause, from all our major political parties, going back to disparity in particular, and how early statehood and the Civil War. GROWTH & JUSTICE both of those conditions threaten flame” on inequality, and racial Growth & Justice is a research economic growth. Equity is not only about doing what’s right. It also makes and advocacy organization Our drumbeat of recent perfect business sense. A recent that develops innovative commentary and research Itasca Project report cites four public policy proposals based underscores that an “equity on independent research and agenda” must become the of a more diverse and equitable civic engagement. We believe when Minnesota makes smart driving force in public policy in specificworkforce: competitive stronger advantagesconnections Minnesota, supplanting a once to a more diverse customer base; investments in practical prevailing anti-government and less “groupthink” and better solutions it leads to broader anti-tax mentality. No other group decisions; increased innovation; prosperity for all. makes the business case for the GROWTH & JUSTICE equity agenda as effectively and the company bottom line. This 970 Raymond Avenue persistently as we do. andline frombetter the financial Itasca Projectresults onpolicy Suite 105 brief sums it up pretty well, as You, as supporters of Growth Saint Paul, MN 55114 an opportunity rather than a phone: 651-917-6037 & Justice, are helping us make problem: “We have yet to tap this happen, through both your [email protected] the full potential of our region’s growthandjustice.org contributions to us and your human capital.” attention to these issues. The individuals, foundations and many Newsletter design & layout by other partners that donate to us or nonpartisan framing of the big Mark Tundel Influential as we have been in 2 SPRING 2015 RURAL PARTNERSHIPS GAINING BROAD SUPPORT rowth & Justice continues Although the immediate G to connect, nurture and fate of the legislation is uncertain as we go to in Greater Minnesota (the press, this progress is a publicize“Strive Five”) five thatcommunities are making positive step forward in real, measurable progress educating and familiarizing on collaborative community decision-makers about the partnerships that improve student depth and breadth of rural outcomes from cradle to career. educational partnerships Our efforts are building a spirit of in Minnesota, and their teamwork and cohesiveness and a importance to the students growing statewide awareness that in those communities. a rural student success movement Maureen Ramirez and Rep. Tim Kelly and other supporters of is underway. In addition, we are Rural Partnerships. establishing new connections times before House and with other partnerships in rural DaneSenate Smith committees testified about several As a result, new supporters Minnesota, including Grand the rural education partnership for community partnerships Marais and Alexandria, with an movement. In addition, rural and have been created throughout eye toward including them in this urban allies for the legislation Minnesota, with some legislators network. visited with dozens of legislators expressing an interest in starting from all over the state—rural, similar initiatives in their own A recent development in this urban and suburban—making districts. work is the formation of new the case for state support of both relationships between rural rural and urban partnerships. Strive partners and the Promise Neighborhoods in Minneapolis and St Paul. Growth & Justice, INEQUALITY TRENDS IN MINNESOTA: A COUNTY-LEVEL ANALYSIS led by Policy & Research Director Maureen Ramirez, was instrumental in initiating he 2014 election and the 2015 legislative session have brought a and forging a close alliance T new focus in Minnesota on regional inequalities between the Twin Cities metropolitan area and rural or Greater Minnesota. A new report by Tom Legg and Ngoc Nguyen provides important factual amongNorthside five Achievement partnerships Zone (Red context for understanding these disparities, for policymakers and for Wing,in Minneapolis, Northfield, and St. the Cloud, St.