JOBZ A Work in Progress

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JOBZ A Work in Progress August 18, 2004
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Economic Success

• DEEDs mission is to
• Support the economic success of individuals,
  businesses, and communities by improving
  opportunities for growth.

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Challenges in Greater Mn

• Demographics
• Population trends follow national patterns, but
  with significant regional variation
• Skilled workers are increasingly in short supply
• Economic Base
• Diversity of economic base is decreasing
• Lower pay jobs versus higher pay jobs
• Reduced labor pool forces employers to examine
  alternatives

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Median Age of Population - 2000
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Percent Population 65 and Over - 2020
Bureau of the Census, U.S. Department of Commerce
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Economic Future?
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Projected Population Change2000 - 2030

• Negative or modest growth
• across much of Greater
• Minnesota

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What does this data mean?

• JOBZ is both an economic and a social tool
• Economic Community regional tool to
  retain/recruit businesses
• Social Businesses retain individuals/families in
  a given area

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Results to date are impressive

• Since January 1, 2004
• 64 Business Subsidy Agreements signed
• Over 1100 retained jobs
• Over 1000 new jobs
• Over 100 million in new capital construction
• 43 participating communities
• Average salary of new jobs - 12.02/hr
• Average of 2 deals a week statewide

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JOBZ Projects January 1st
Signed Business Subsidy Agreements
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JOBZ Projects August 13th
Signed Business Subsidy Agreements
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JOBZ is

• A state tool administered locally
• Questions remain on how much state control
  should be in place
• The obvious negative question is How much do
  we (the state) trust communities to make
  intelligent decisions?
• Is it any of our business what decision a
  community makes?
• Yes State programs require a degree of state
  oversight/approval
• No Maximum flexibility ensures strong local
  control
• What comes next?
• Some type of state sign-off prior to local
  decision making

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JOBZ is

• An incentive
• Providing an obvious financial incentive to tilt
  a decision towards Minnesota
• Incentives are never the most important decision
  in a business location process
• Do we care if vacant land or buildings are put
  into production absent new property taxes?
  Payroll contribution definitely has a positive
  impact.
• Although this argues more for expansion then
  retention
• What comes next?
• Increased availability of tools to aid in
  evaluating payroll versus tax benefits
• Some type of state sign-off prior to local
  decision making

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JOBZ is

• A work in progress
• Tighten requirements on type of jobs created or
  retained
• Ensure prevailing wage utilized for construction
• Strengthen marketing resources available at the
  state level for use by communities
• Promote availability of the program in the
  Metropolitan area

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JOBZ in perspective

• JOBZ has dramatically changed the landscape in
  terms of
• Excitement
• Regional cooperation
• Leverage of workforce and economic resources for
  common good
• Competition with the Dakotas
• When Sioux Falls references JOBZ in their radio
  ads, as they have done, you know we are making
  progress
• Governor Hovan (ND) has publicly challenged the
  ND legislature to respond to JOBZ