1. MN School Boards Association Minnesota’s Financial Future Jay Kiedrowski December 3, 2010 St. Louis Park, MN

2. 2 Introduction Trends: Demographic, Social & Economic Trends: Demographic, Social & Economic MN Management and Budget Department MN Budget Trends Study Commission State Economist Wilder Foundation Twin Cities Compass Other Implications Implications New Innovations & Redesign Guide New Innovations & Redesign Guide Questions & Comments Questions & Comments

3. 3 Demographic

4. 4 Demographic

5. 5 Demographic

6. 6Social

7. 7Social Source: Georgetown University Center on Education and the Workforce

8. 8 Social

9. 9 Social

10. 10 Social 433,000 Minnesotans without healthcare insurance.

11. 11 Social Personal Expenditures

12. 12 Social (Housing Link, 2010)

13. 13 Social

14. 14Social

15. 15 Social

16. 16 Social Volunteer Rankings Top 5 Cities 1.Minneapolis-St. Paul 2.Portland, OR 3.Salt Lake City 4.Seattle 5.Oklahoma City Top 5 States 1.Utah 2.Iowa 3.Minnesota 4.Nebraska 5.Alaska National Service Programs, 2010

17. 17 Economic Internet Speed - MN 20th

18. 18 Economic

19. 19 Economic MN Traffic Congestion Increasing Congestion costs average motorist $800 per year or a total of $1 billion in the TC region.

20. 20 Economic

21. 21 Economic

22. 22 Economic

23. 23 Economic 1985-2005

24. 24Economic

25. 25Economic Structural Imbalance

26. 26Economic

27. 27 Future Problem (12-10)

28. 28 Former Finance Commissioners Reaction to Deficit Kiedrowski Gunyou Ingison Wheelock Kiedrowski Gunyou Ingison Wheelock

29. 29 Implications A Similar Minnesota in the Future Highly Educated Healthy Clean Environment Productive Workers Less Crime Reduced Traffic Fatalities High Voter Turnout Rich Cultural Arts Supportive Nonprofit Sector

30. 30Implications A Different Minnesota in the Future Older, More Diverse Fewer Wage Earners Proportionately Less Well Educated More Relative Unemployment Higher Tuition for College Less Affordable Health Care Greater Income Disparity Less Affordable Housing More Congestion

31. 31 Implications Different Public Finances in the Future State Revenue-Expenditure Structural Deficit More Revenue Volatility Revenue Growth Less Than the Past Public Healthcare Rethinking Required Property Tax Relief Changes Needed Funding Source for Local Governments Need for improved School Aid formula

32. 32 Statement on Minnesota’s Finances

33. 33 Price of Government

34. 34 Innovation and Redesign Guide

35. 35 Innovation and Redesign Guide

36. 36 Innovation and Redesign Guide 1. Clearly define the problem 2. State the desired measurable outcome 3. Investigate why traditional approaches aren’t working 4. Indentify alternative theories or assumptions that address the problem 5. Innovate and redesign

37. 37 Innovation and Redesign Guide Performance Accountability Charges, Incentives, and Targeting Competitive Contracting Funding Consumers Collaboration/Consolidation Prevention Community

38. 38 Honoring the innovation of Minnesota cities, counties & schools. Honoring the innovation of Minnesota cities, counties & schools. Up to 18 awards to be given out for innovative work in SERVICE REDESIGN Up to 18 awards to be given out for innovative work in SERVICE REDESIGN Brief Application available online due February 4, 2010 Brief Application available online due February 4, 2010 2010-2011 Local Government Innovation Awards www.incommons.org/LocalGovernmentInnovation

39. 39 Minnesota’s New Normal Minnesota’s New Normal How will the Minnesota Community respond to the new normal? Will Minnesota balance its budget and set key priorities or will we become the next California? or will we become the next California?

40. 40 Questions and Comments?