Narrative: III. a. 2. I.

DEED oversees the state’s workforce—development system and is home to a majority of the programs within WIOA. The agency is also responsible for Minnesota’s economic—development initiatives, including business finance programs, business expansion incentive programs, export and trade promotion, and a variety of education and technical services for small businesses.

DEED’s business development representatives located throughout the state provide assistance and solutions to businesses locating or expanding in Minnesota. Theses representatives work directly with business and identify and connect available resources including workforce solutions. These representatives work directly with DEED staff located in the 48 WorkForce Centers to identify potential resources to meet the employer needs. By state law all economic development projects funded by state resources must coordinate with a WorkForce Center to post any new or vacant positions. The Minnesota Trade Office in addition to the business development representatives have expertise in key industry sectors. The staff understands the needs of these industries and markets specifically to attract and retain these businesses. The business development representatives serve as a liaison to support regional initiatives and strategies critical to their regional economies.

The Minnesota Jobs Skills Partnership (MJSP) program administered by DEED works strategically with businesses and educational institutions to train or retrain workers, expand work opportunities, and keep high—quality jobs in the state. The MJSP Board also has statutory authority over the state and federal Dislocated Worker Program (DWP), which provides training and services to laid—off Minnesota workers who meet specific eligibility requirements.

By state law, DEED is responsible for supporting the Governor’s Workforce Development Board. The GWDB works in alignment with the MJSP board. Four of the GWDB members also serve on the MJSP board to ensure that we are meeting our goals and avoiding duplication in programming or investments.

In addition, the GWDB and DEED senior leaders meet regularly to discuss workforce challenges for Minnesota businesses and identify new opportunities to help companies. The Workforce Housing Development Program is an outgrowth of that collaboration. The program targets the lack of affordable housing in Greater Minnesota, which makes it difficult for businesses to attract the workers they need.

The executive director of the GWDB and several of the board members are also members of the Economic Development Association of Minnesota and the Regional Economic Development group of the McKnight Foundation, two organizations engaged in addressing regional and statewide economic needs.

Many of DEED state—funded business financing programs address the common vision of workforce development of providing Minnesotans with meaningful employment at family sustaining wages.

• Minnesota Job Creation Fund — This program encourages capital investment and high—wage job creation in key industries throughout the state. The program provides financial benefits to expanding business that spend at least $500,000 in real property improvements with one year, create at least 10 new full—time positions that meet compensation requirements within two years, and possess expansion outside the state. In SFY 2015, $11.65 million in state dollars were awarded, with 1,620 projected jobs created. All financing is performance—based and provided as business meet capital investment and job creation thresholds.
• Minnesota Investment Fund — This program provides financing that creates and retains high—quality jobs, with a focus on industrial, manufacturing, and technology—related industries, to increase the local and state tax base and improve the economic vitality for all Minnesota citizens. Grants are awarded to local units of government who provide loans to assist new and expanding businesses. Cities, counties, townships and recognized Indian tribal government are eligible. All projects must meet minimum criteria for private investment, number of jobs created or retained, and waged paid. In SFY 2015, $7.9 million in state dollars were awarded, with an estimated 1,106 jobs created or retained.

Several state—funded business financing programs directly target communities of color in Minnesota:

• Minnesota Angel Tax Credit Program — This program provides a 25 percent credit to investors or equity funds that make equity investments in startup businesses focused primarily on high technology or new proprietary technology. In 2015, $7.5 million of the available credits were reserved (until October 1) for businesses that are located in Greater Minnesota or are minority— or women—owned. In total 33 businesses in Greater Minnesota or minority— or women—owned received an investment, with total investment dollars generated at $19.3 million.
• Minnesota Indian Business Loan Program — This program supports the development of Indian—owned and —operated businesses and promotes economic opportunities for Native American people throughout Minnesota. Eligible applicants must be enrolled members of a federally recognized Minnesota—based band or tribe. Each band or tribe is allocated funds from the program based on the number of enrolled members. DEED administers the program and services the loans, while the appropriate tribal council approves loan applications. In SFY 2015, 4 projects were approved, with $425,300 in loan amounts.
• Urban Initiative Loan Program — This program primarily assists minority—owned and —operated businesses and other that will create jobs in low—income areas of the Minneapolis—St. Paul region. DEED has entered into partnerships with several local nonprofit organizations, which then provide loans and technical assistance to start—up and expanding businesses. Projects must demonstrate potential to create jobs for low—income people; be unable to obtain sufficient capital from traditional private lenders; and demonstrate the potential to succeed. In SFY 2015, 34 projects were approved, with $1.13 million in loans granted.

Minnesota has an established history of addressing and supporting the economic needs through philanthropic organizations. Since 2004 the McKnight and Blandin Foundations launched a public—private partnership called the Regional Economic Development Group (RED Group). This partnership promotes regional approaches to economic development in Minnesota. Members of RED Group include business groups, foundations, education systems, public sector agencies, nonprofits and others. In addition, each of the members of RED Group is committed to contributions of financial and human resources. The RED group advances the approach to community economic development because it enables private sector and public and nonprofit community development organizations to concentrate state and local resources more efficiently and effectively while linking powerful public and private resources to achieve shared goals and outcomes. The RED group is organized around the six Minnesota Initiative Foundations, which have identified the distinctive competencies and comparative advantages of each of their regions, the partnership hopes to reduce competition between regions and help each region leverage its unique assets to help create individual and community prosperity.

An important RED Group role in the effort is to be a catalyst for the kind of system changes that will more effectively support economic development in Greater Minnesota. Success in realigning systems already can be seen in cooperative efforts with the state’s education systems and public agencies. Most recently the RED Group focus is on the growing disparities gaps in Greater Minnesota. The Group meets quarterly to develop strategies and potential solutions to address the needs of individuals while continuing to meet the workforce needs of employers.

The nine Regional Development Commissions (RDC) in Minnesota were established to provide technical assistance to the local units of government in their region. While RDCs perform a variety of unique services based on the needs of their region they intentionally align and collaborate with stakeholders in the workforce system and often serve as local workforce development board members. Over the past few years the nine RDCs developed a plan and recently launched the DevelopMN Initiative. DevelopMN is a project to improve the regions and communities we serve by creating a new statewide framework for community and economic development to address the special challenges and opportunities of Greater Minnesota. DevelopMN will create a unified assessment of the state of Greater Minnesota, develop regional strategies to address common issues, and engage partners across the state to achieve goals.

Establishment of the six regions and approval of six regional plans the coordination and alignment is also heightened. The six elements in this plan, in particular, the first three identify not only the opportunity but the need for local and regional economic development organizations to be aligned and integrated into these plans. Regional economies are dependent on a future skilled workforce and strategies that develop the skills and training needed for industry to thrive. The coordination and leadership from economic development is evident in the regional governance structures their participation in these plans.