Governor’s FY 2017 Supplemental Budget Recommendations Natural Resources, Economic Development, and Agriculture Budget Division March 23, 2016 Katie Clark Sieben, Commissioner Minnesota Department of Employment and Economic Development

Supplemental Budget Recommendations Equity Proposals – Emerging Entrepreneur Fund, $6 million (one-time) – Youth at Work Program, $8 million (one-time) – Pathways to Prosperity, $4.1 million (one-time) – Office of Career and Business Opportunity, $2 million (one time) Broadband – Border-to-Border Broadband Development Grant Program, $100 million (one-time) Community Development – Redevelopment Grant Program, $2 million (one-time)

Emerging Entrepreneur Fund Recommendation: $6 million, one-time New, statewide lending and technical assistance program to serve businesses owned by people of color, women, veterans, and people with disabilities Would consolidate three existing DEED programs into one streamlined resource, allowing nonprofits to submit ONE application

Youth at Work Competitive Grant Program YEAR PROPOSALS RECEIVED/ AMOUNT REQUESTED PROPOSALS FUNDED/ AMOUNT FUNDED UNFUNDED TOTAL YOUTH SERVED TOTAL YOUTH UNSERVED (EST.) SFY / $9.8 million16/ $5.4 million22/ $4.4 million8,62427,000 SFY / $14.7 million 22/ $6.36 million 19/ $8 million10,00025,000 Recommendation: $8 million, one-time Early work experience is the top predictor of future economic success Additional funding would provide services to 3,000 young people In SFY 14-15, over 75% of participants were youth of color and 28% had disabilities

Pathways to Prosperity Competitive Grant Program Recommendation: $4.1 million, one-time Creates partnerships between Adult Basic Education providers, community-based nonprofits, workforce development providers, higher education institutions, and employers Additional funding would provide services to 2,000 adults with barriers to employment Empowers Minnesotans with barriers to employment – low income, no high school diploma, lack of childcare, lack of transportation, lack of housing, etc.

Capacity Building Grant Program Recommendation: $2 million, one-time Would provide capacity building assistance to community-based service providers Would build the pipeline of culturally focused service providers to ensure that state resources reach ALL Minnesotans

Border-to-Border Broadband Development Grant Program Recommendation: $100 million, one-time Statewide access to reliable broadband ensures all communities have the ability to grow their economy, provide healthcare for their residents and education for their children $100 million would serve an additional 35,000 businesses and households across the state The program is currently out of funds, although there is a large demand for resources statewide

Redevelopment Grant Program Recommendation: $2 million, one-time The only statewide tool to help local units of government and developers defray the costs of recycling property, which are often otherwise prohibitive The program is currently out of funds, although there is a large demand for resources statewide

Thank You