Purpose of the Bill

The bill aims to establish the biennial budget for Minnesota's Department of Employment and Economic Development (DEED) and Explore Minnesota. It includes various amendments and policy changes, funding allocations for different programs, grants, and initiatives to boost economic development, workforce services, and child care support throughout the state.

Main Provisions

• Budget Allocations:

  • DEED and Explore Minnesota are allocated funds for fiscal years 2026 and 2027 for various programs from the general, remediation, and workforce development funds.
  • Appropriations cover sectors such as business and community development, workforce development services, vocational rehabilitation, and tourism development.

• Child Care Initiatives:

  • Grants are designated to support an increase in quality child care providers through business startups, facility enhancements, and training, particularly in rural areas.
  • Establishment of the Office of Child Care Community Partnerships focusing on analyzing and improving child care industry metrics.

• Workforce Development:

  • Programs like Drive for Five are funded to provide career counseling and skills training in vital industries such as technology, manufacturing, and services.
  • Emphasis on hiring and supporting women in high-wage, high-demand jobs, assistance for Southeast Asian communities, and expansion plans for minority-owned businesses.

• Business Development:

  • Funds are allocated for job creation, redevelopment programs, and emerging entrepreneur loan programs.
  • Special provision for the Minnesota forward fund to facilitate private investment, increase competitiveness, and provide flexibility to secure federal matching funds for state projects.

• Special Grants and Programs:

  • PROMISE grant and loan programs focus on areas affected by economic disparities, prioritizing business development in Minneapolis and St. Paul.
  • Support for initiatives like Minnesota Film and TV Board, cultural economic empowerment, and expanding tourism through Explore Minnesota.

Significant Changes

• Grant Limits Increases: The maximum grant amounts for certain educational and nonprofit institutions have been raised from $400,000 to $500,000, offering more substantial financial support to improve training and transition programs.
• Flexibility in Appropriations Usage: The commissioner has been given authority to transfer funds between appropriations within the Minnesota forward fund account to enhance economic development flexibility.
• Policy Repeals: Repeals certain sections of existing laws to consolidate and streamline economic and employment development efforts in Minnesota.

Relevant Terms

• Biennial budget
• Economic Development
• Workforce Development
• Grants
• Child care providers
• Minnesota forward fund
• Vocational Rehabilitation
• Job creation fund
• PROMISE program
• Minnesota Trade Office