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| SENATOR NELSON COMMENTS ON DEED BUSINESS DEVELOPMENT THROUGH CAPITAL PROJECTS GRANT PROGRAM | ||||||||||
(Minneapolis) State Senator Carla Nelson (R-Rochester) commented on Governor Mark Dayton's assertion that he will choose the projects to be funded with bonding money allocated to the Department of Employment and Economic Development (DEED).
Senator Nelson stated, I was taken aback at media reports stating the governor was making final decisions on the selection of projects through DEED. The legislative language clearly states that project selection must be based on the highest return in public benefits for the public cost incurred.
The legislature further listed 11 criteria for project prioritization and selection.
Nelson added, It is essential that lawmakers and the public be assured that the removal of legislative earmarks not be replaced by mere gubernatorial earmarks or political pandering.
Senator Nelson contacted DEED Commissioner Phillips on Friday to discuss transparency and accountability in the selection process.
Nelson continued, I want to publicly thank and congratulate DEED Commissioner Mark Phillips for committing to me that once the final selections have been made, all documentation and the rating sheet for each project application will be made publicly available.
Here are the criteria for the DEED competitive grants:
The project must be publicly owned and there must be a local dollar match.
Selected projects must provide the highest return in public benefits for the public costs incurred.
The commissioner is to evaluate and prioritize eligible projects on the
following characteristics:
● The creation of new jobs, retention of existing jobs, or improvements in the quality of existing jobs as measured by the wages, skills, or education associated with those jobs.
● The improvement in the quality of existing jobs, based on increases in wages or improvements in the job duties, training, or education associated with those jobs.
● The increase in the local tax base, based on demonstrated measurable outcomes.
● The demonstration that investment of public dollars in the project will induce private investment.
● Whether the project provides necessary repair or replacement of
existing capital assets.
● Whether the project reduces operating expenses of or increases revenue from existing capital asset, thereby offsetting at least a portion of project costs.
● Whether the project provides health or safety benefits.
● The number of residents served by or who will benefit from the project.
● The demonstration of local support.
● The capacity of the project to attract revenue from out of state.
● Objective cost benefit analysis and return on investment.
Senator Carla Nelson is Vice Chair of the Senate Education Committee and a member of the Senate Capitol Investment Committee.
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