Almanac: At the Capitol

Here's the jobs picture from DEED, it isn't great:

Minnesota lost 20,700 jobs in January, according to figures released today by the Minnesota Department of Employment and Economic Development (DEED).

The agency said the state’s unemployment rate climbed to a seasonally adjusted 7.6 percent, equal to the national rate. The state has lost nearly 75,000 jobs over the past year, while U.S. job losses totaled 3.5 million during that period.

The last time Minnesota's unemployment rate was in this range was in the summer of 1983 when we were coming out of that recession. The high point in MN was 9.0% in Nov of 1982.

Republican lawmakers have an idea on how to bring jobs to the state--and it doesn't grow the deficit like the tax breaks Gov. Pawlenty proposed last week.  They want any new job creators to get a 5 year exemption from the 9.8% tax rate.  This doesn't take revenue away from the state because these jobs aren't here anyway.  It is intended to compete with surrounding states that offer lucrative tax incentives to new employers.  GOPers say it won't be a "bait and switch" because they'll try to permanently lower the tax rate if it works. 

The benefit to the state would be obviously the jobs, but other taxes it bring like sales tax and gas tax associated with the jobs.  Rep. Zellers says the governor's staff thought it was a "great idea."  It is not intended to replace Pawlenty's JOBZ tax-free program in greater Minnesota.

This is another chance for Republicans to say they have some ideas, when Dems big idea is to "ready" the state for federal stimulus.  Even though most of the Republican ideas will go no where in the Democratic controlled legislature, it's a PR battle of ideas.

Gov. Tim Pawlenty unveiled his "Green Jobs Investment Initiative" which has an overall price tag of $86 million over many years and would create a "significant number of jobs" without naming a specific number.  It expands the tax-free JOBZ zones for green jobs and has other tax credits and investments.  In light of his new national position and the fact some conservative Republicans have been skeptical of his environmental positions he stood by going green and said there are "no worries of being too green or environmentally sensitive."  He thinks the legislature which is DFL-controlled will view the package favorably because the jobs are "clean and green" and "we're in a recession."  Urban Dems have taken aim at the gov's tax free zones in the greater Minnesota and nearly axed it last session.  Pawlenty didn't steer too hard left as he still adhered to his belief that business taxes are too high in the state saying "if it were up to me we would make the whole state more like a JOBZ zone."     

The governor also sounded off about the swinging U.S. Senate tallies and referenced "concerning repots of someone driving around with 30-40 ballots in their car."  He asked emphatically "How does that happen?"  Pawlenty reminded us that Minnesota has a proud election tradition being one of the leading states and believes "the process is not flawed on its face."  He said his lawyers have been looking into a gubernatorial role in a recount and it generally doesn't seem he can play a major role as the controversy continues.

Back to the Green Jobs thing, Rep. Tim Mahoney, chair of the Committee of Biosciences & Emerging Technologies, stopped by the press offices and said there was not enough detail, but lawmakers look forward to working with the governor.  Mahoney said "we all like green, but it seem like the governor is focused on how we cut taxes."  The DFL lawmaker wondered "why throw in one of the most contentious issues" by including JOBZ.  He thinks that hurts the plan rather than create DFL converts to the concept.