| 1997 Fiscal Review Appropriations - Economic Development |
The 1997 session of the Legislature appropriated more than $135 million for economic and community development purposes in the omnibus appropriations bill for jobs, energy, and community development (Chapter 200). Most of that amount is appropriated through the Department of Trade and Economic Development (DTED).
Another $14 million was appropriated to DTED from the bonding bill (Chapter 246) for brownfields cleanup programs to convert contaminated sites for economic development purposes and to finance wastewater infrastructure projects for municipalities.
Job Skills Partnership. The largest appropriation was more than $15.3 million for the Job Skills Partnership -- a $10.5 million increase over the previous biennium. The partnership program was expanded to include a $3.5 million welfare-to-work custom training program and authority to spend money for a new loan program for businesses to provide customized job training programs.
Minnesota Investment Fund. The Minnesota Investment Fund received an appropriation in excess of $13 million. This appropriation exceeded the last biennium's appropriations by $5 million.
Of this amount, $1 million was designated for an unidentified recipient that the DTED commissioner claims would create more than 1,000 high-paying jobs. This grant would not be subject to the $500,000 per grant limitation.
Rural Policy and Development Center. The Legislature enacted a new rural development initiative by creating an endowment fund and operational money for a new Center for Rural Policy and Development at Mankato State University. The center will be operated at Mankato State University but be managed by a statewide board, including the president of the University and representatives of various rural interests appointed by the Governor and the Legislature.
Charges to the center include:
The $2 million endowment fund for the center will be an account in the state treasury to be managed by the State Board of Investment. The principal of the account must be invested and re-invested by the State Board of Investment. Earnings will be annually appropriated to the center's board.
Brownfields. Appropriations for brownfields cleanup and redevelopment included $12.4 million in the omnibus economic development bill and $7 million from the bonding bill (Chapter 246). The $12.4 million appropriation is for contamination cleanup related to petroleum products. The $7 million appropriation is for brownfields cleanup under existing law. The money comes from the General Fund, from the motor vehicle transfer fund, and from an extension of the Petroleum Tank Release Cleanup fund.
Minnesota Technology Inc. (MTI). MTI was appropriated almost $19.6 million, including $3.5 million to invest in a partnership between MTI and faculty at Minnesota academic institutions.
Office of Tourism. Tourism was appropriated more than $16.8 million, including a new initiative of $1 million appropriated to the film board for jobs created by film productions in Minnesota.
Trade Office. The Trade Office under DTED received almost $4.8 million, including a $350,000 appropriation for a project to develop trade with China.
Public Facilities Authority. This agency within DTED received more than $7.4 million in direct General Fund appropriations and $4 million in bonding authority for drinking water and waste water treatment projects.
More than $4.4 million was appropriated for state matching money for federal funds for drinking water projects. The rest of the appropriation and the bond proceeds appropriation are for loans to eligible municipalities for wastewater infrastructure funding.
Direct Reduction. A project for development of a direct reduction of iron ore processing facility in northeastern Minnesota received a $3 million appropriation.
Brooklyn Center Pond. A $2 million appropriation was made for the construction of a water retention pond in the Brookdale area of Brooklyn Center.