| Governor's Changes |
| (Dollars in Thousands) |
| FY 14 |
| FY 15 |
| FY 14-15 |
| Biennium |
| FY 16 |
| FY 17 |
| FY 16-17 |
| Biennium |
| Minnesota Investment Fund |
| The MIF loan program provides financing to create and retain high-quality jobs to improve economic vitality for all |
| Minnesota citizens. MIF funds are disbursed to local governments and then provided as a loan to the business. The loans |
| are attractive to businesses because they are up front and can be used to offset capital expenditures, often equipment |
| purchases. All projects must meet minimum criteria for private investment, number of jobs created or retained, and wages |
| paid. Some loans are forgiven depending on the transaction requirements. Recapitalizing MIF will allow the state to |
| actively compete for jobs created by expanding manufacturing and high-tech businesses looking to relocate to or expand |
| in Minnesota. |
| Performance Measures: |
| This measure will assist in the creation of approximately 7,500 – 10,000 new jobs in Minnesota. |
| 15,000 |
| 15,000 |
| 30,000 |
| 15,000 |
| 15,000 |
| 30,000 |
| Net Change |
| 15,000 |
| 15,000 |
| 30,000 |
| 15,000 |
| 15,000 |
| 30,000 |
| Minnesota Job Creation Fund |
| The Governor recommends funding for the Minnesota Job Creation Fund, a statewide job creation incentive program. This |
| economic development tool will help Minnesota compete for job creation from businesses expanding or locating in the |
| state. This program, in conjunction with the Minnesota Incentive Fund, provides Minnesota with flexible and effective tools |
| to craft incentive packages that would be most appealing based on differing business financial needs. This new |
| performance-based statewide grant program follows incentive program best practices and would provide financial awards |
| to businesses that meet industry requirements as well as minimum capital investment and job creation thresholds. |
| Performance Measures: |
| This reform proposal will leverage $450 million in private investment and assist in the creation of approximately 5,000 |
| jobs. |
| 12,500 |
| 12,500 |
| 25,000 |
| 12,500 |
| 12,500 |
| 25,000 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Net Change |
| 12,500 |
| 12,500 |
| 25,000 |
| 12,500 |
| 12,500 |
| 25,000 |
| Minnesota Global Competitiveness Initiative |
| The Governor recommends funding for the Global Competitiveness Initiative to increase exports and foreign direct |
| investment. This program would establish foreign offices in three new markets; currently the Minnesota Trade Office has |
| one foreign location. The initiative also provides funds for a marketing campaign designed to better communicate the |
| benefits of doing business in Minnesota and an export assistance grant program for small businesses to participate in |
| trade-related activities. These activities equip Minnesota with the tools it needs to be competitive in a global marketplace. |
| Performance Measures: |
| This proposal would create new jobs through increased foreign investment and/or or increased exports. |
| 750 |
| 750 |
| 1,500 |
| 750 |
| 750 |
| 1,500 |
| Net Change |
| 750 |
| 750 |
| 1,500 |
| 750 |
| 750 |
| 1,500 |
| Unemployment Insurance Employer Tax Reduction |
| The Governor recommends reducing the Unemployment Insurance (UI) tax to 0.1% of taxable wages for all for-profit |
| employers and eliminating the 14% additional assessment currently levied on taxes due for FY 2014 -2015. The impact of |
| this reduction would be a savings to Minnesota employers. The tax reductions would only occur if the unemployment |
| insurance trust fund continues to maintain an adequate balance to pay benefits to individuals. Note: The trust fund is |
| maintained outside of the state treasury; therefore numbers are not reflected in the budget system. |
| Performance Measures: |
| This proposal will substantially reduce unemployment taxes over a two year period. |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Net Change |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| Net All Change |
| Items |
| 28,250 |
| 28,250 |
| 56,500 |
| 28,250 |
| 56,500 |
| 28,250 |
| Net Change |
| 28,250 |
| 28,250 |
| 56,500 |
| 28,250 |
| 28,250 |
| 56,500 |