Category Archives: Uncategorized

Wind power is big in Minnesota. Carleton and St. Olaf both have wind turbines, and Carleton is planning another one, reports Sarah Lemagie in the Strib. So do Macalester and the U of M-Morris. St. Olaf’s turbine supplies about a quarter of the college’s electricity, while Carleton sells its wind power to Xcel Energy. In Woodstock, MN, Juhl Energy expects to earn $12 million from small Midwest wind farms, developed in partnership with farmers and other community-based owners, Neal St. Anthony writes in the Strib.

[Minnesota wind pioneer Dan Juhl, retired Gen. Wesley] Clark and JUHL President John Mitola, an engineer, lawyer and veteran utility executive, have spent a lot of time figuring out how they can keep the wind energy from becoming just the province of huge energy players such as utilities and energy conglomerates.

“Dan, on his own and without any silk-stocking investment bankers, managed to get about $200 million in wind farms going that are owned by farmers and other community members,” Mitola said this week. “We’ve got [hundreds of millions more] in the pipeline. But we need capital.”

While many people associate “local” and “sustainable” in discussions of energy or food, the contest for control of “green” energy has big-time national players, the feds seem to be lining up with big-bucks proposals for massive wind farms and giant powerlines. AP reports that the Obama administration and congressional leaders say the federal government should have greater authority to locate transmission lines, and not allow states to stand in the way of construction of a “smart grid” for wind and solar energy transmission.

Sea Stachura reports for MPR that an out-of-state power company wants to build a $12 billion power line across seven states, saying it will carry wind-generated electricity to eastern states. The ITC Holdings Corp.’s “Green Power Express” proposal calls for a 765 kilovolt power line with thick electric lines 150 to 300 feet in the air. Critics say the giant power lines would interfere with bird migration, tourism and the ecosystem. ITC does not guarantee that the power carried over the lines would be wind power, and critics also say much of it would be coal or nuclear-generated.

According to the MPR report, CapX 2020 is a consortium of MN utility companies that wants to upgrade and expand its power lines in MN. MN Senator Amy Klobuchar says she supports power lines to carry wind energy to the East Coast.

While Minnesota (and several other states) claim to be “the Saudi Arabia of wind power,” Saudi Arabia may not be the best development or energy production model. The Institute for Local Self Reliance reports that bigger isn’t always better:

Rapid growth of the renewable energy industry requires economies of scale. The status quo rewards ever-larger production facilities for rather modest reductions in costs and indirectly reduces local ownership. A policy of locally-owned renewable energy production, however, could pour nearly $1 billion into rural economies via thousands of rural owners. That’s an economy of scale.

Giant wind farms require giant transmission line grids, which are not only environmentally suspect but also economically inefficient.

A large, 200 MW wind farm can produce electricity for 25% less than an otherwise equivalent local 10 MW wind farm, but large wind farms often need new transmission lines to send their power long distances. If a 200 MW project sends its power 500 miles, transmission costs and losses largely offset its economic advantage. [emphasis added]

On the other hand, twenty 10 MW projects injecting their electricity into the existing transmission system could produce the same power at close to the same cost while also providing substantial local economic benefits.

Tax blue jeans, give business a break Surprise! Pawlenty panel backs business tax cuts T-Paw’s 21st Century Tax Reform Commission recommended imposing a sales tax on clothing and services, and raising the cigarette tax by about a dollar per pack — all in order to pay for business tax breaks starting at $300 million the first year and rising to $900 million a year thereafter, reported AP. Hmmm – maybe people will have something to say about the panel and T-Paw at a series of town hall meetings across the state, starting Thursday.

A billion here, a billion there, and pretty soon you’re talking real money Or not — as the estimates of how much of the economic stimulus package will come to MN vary wildly from one report to the next. Four billion, and possibly more, Senator Amy Klobuchar told AP’s Martiga Lohn. $9.1 billion, said Kevin Diaz in the Strib, with the money saving or creating 66,000 MN jobs. Diaz’s colleague Patricia Lopez had estimated (one day earlier) “a cool $3 billion” for MN. Lopez quoted MN House Speaker Margaret Anderson Kelliher as saying that “a lot of the details are not as crisp as we would like,” which seems like one of the more accurate statements about the MN stimulus funding.

Here are some of the early reports on the devilish details: Cynthia Boyd at MinnPost reports that Minnesota’s school stimulus funds are estimated at about $1.4 billion, including 815.7 million in state fiscal stabilizatin funding, $224.3 million in Pell grants, $187.5 million in added Special Education monies, $87 million in Title I tutoring for poor kids, $27.2 million in school improvement grants, $20.6 million for Head Start, and $25.2 million for Child Care and Development block grants.

MinnPost’s DC reporter, Cynthia Dizikes weighed in with more numbers — $134,695,876 in weatherization funding, $668,242,481 in infrastructure investment, $502,284,177 for roads and bridges, $92,241,542 for mass transit, $1,851,573 specifically for the Hiawatha Corridor, $107,690,700 in loan funds for drinking- and waste-water treatment.

MN Job Watch Want a recession-proof job? Shoe repair is good, according to the Strib, and so is the pawn shop business, auto repair, and debt collectors. Their business is so good, that lawyers report an increase in business from people being hounded by collectors. Bankruptcy filings are also “huge” and “the repo business is booming.”

You might take that optimistic outlook with a grain of salt, however — MPR’s Tom Robertson reports reports that not even funeral homes are recession-proof.

A growing number of families are choosing less expensive caskets for their loved ones. They’re cutting back on flowers and shortening the length of visitation services, all as a way to save money.

There’s also a rise in the number of families who cannot pay funeral costs at all, especially in regions with high unemployment. That means burial costs are increasingly falling on local or state governments.

Another Strib article by Kara McGuire points to a grim picture for workers whose retirement accounts fell, on average, by 27 percent last year. Many workers now see their employers eliminating 401(k) matches.

Around the world in 90 seconds Even as peace talks supposedly near an agreement, BBC reports that Israeli jets bombed tunnels on the Egyptian border after two rockets were fired from Gaza into southern Israel.

While the U.S. is at war in Afghanistan, not in Pakistan, BBC reports that U.S missile strikes killed ten people in northwest Pakistan (Sunday?), after a Saturday missile attack destroyed a house near the Afghan border, killing 28 militants. Meanwhile, the Pakistan government signed a peace deal with a Taliban group in the Swat valley, agreeing to enforcement of Islamic Sharia law in the Taliban-controlled region.

In Zimbabwe, new opposition Prime Minister Morgan Tsvangirai showed sufficient strength to get his deputy agriculture minister released from jail after Roy Bennett was arrested on charges of treason. The charges against the white farmer who has opposed the government of President Robert Mugabe were reduced to “terrorism,” , reports the BBC, and Mr. Tsvangirai observed that Bennet’s arrest was undermining the spirit of the power-sharing agreement.

In Venezuela, President Hugo Chávez won another referendum, this one to end term limits, allowing him to run for a third term in 2012, if he so chooses. International observers called the election free and fair.

Somalia’s President Sheikh Sharif Sheikh Ahmed named a new prime minister, , reports BBC. New PM Omar Abdirashid Ali Sharmarke is seen as a bridge between Islamists in the government and the international community. Insurgents have denounced the new government as anti-Islamist, despite the history that President Sheikh Sharif Sheikh Ahmed came to prominence as one of the leaders of the Union of Islamic Courts.

Maybe smart is the new black? The first presidential press conference got good reviews, despite, or perhaps because of, President Obama’s detailed, professorial answers to questions. Maybe the country, and the news media, are ready for beyond-the-sound-bite answers. You can watch the whole hour, courtesy of the Washington Post. Among the highlights:

This is not your ordinary, run-of-the-mill recession.

The single most important part of this economic recovery and reinvestment plan is the fact that it will save or create up to four million jobs, because that’s what American needs most right now. … At this particular moment, with the private sector so weakened by the recession, the federal government is the only entity left with the resources to jolt our economy back into life.

Tax cuts alone can’t solve all of our economic problems, especially tax cuts that are targeted to the wealthiest few Americans.

We stand to lose about one trillion dollars of demand this year, and another trillion next year. That’s why you have this gaping hole in the economy.

The president said he still has hopes for bi-partisanship, but his “bottom line” is “send me a bill that creates or saves four million jobs.” He said he is willing to discuss “this tax cut versus that tax cut or this infrastructure project versus that infrastructure project,” but not willing to listen to claims about pork in the stimulus package.

It’s a little hard for me to take criticism from folks, about this recovery package, after they presided over a doubling of the national debt. I’m not sure they have a lot of credibility when it comes to fiscal responsibility.

Tell it to the city In meetings on budget cuts and priorities, Minneapolis resident and city employee suggestions ranged from cutting public works and housing inspection to unpaid days off and less-frequent trash collection, reports Steve Brandt in the Strib. Another citizen meeting is set for 7 p.m. Tuesday night at East Side Neighborhood Services, 1700 NE. 2nd St. and another employee meeting for Wednesday in Room 319 of City Hall at 12:30 p.m.

God wants Norm “God wants me to serve,” Norm Coleman told conservative radio host Mike Gallagher, reports MnIndy. But he’s still waiting for the final word on whether MN voters want him to serve.

MN People’s Bailout DFLers introduced the Minnesota People’s Bailout at a press conference yesterday, proposing expanded eligibility for unemployment benefits, a new public works/jobs program, a moratorium on the five-year lifetime limit for public assistance, a moratorium on housing foreclosures and additional protections for renters and public sector workers. More to come …

Let’s make voting harder Even as the RNC’s MN voter fraud web page acknowledged that “there are no recent documented reports of vote fraud in this state,” GOP lawmakers introduced legislation to make voting more difficult, justifying it as an anti-vote-fraud measure. Minnesota Independent reports on the Emmer-Kiffmeyer proposal to require voters to produce photo IDs. David Schultz’s op/ed in MinnPost further debunks voter fraud hysteria.

Milk prices: falling off a cliff The brief good times are over for dairy farmers, reports Matt McKiinney in the Strib. Milk futures fell to $9.30 per hundredweight on the Chicago Mercantile Exchange yesterday, from a high of more than $20 last summer. And in the grocery store? “Government reports show that the price of a gallon of whole milk fell about 7 percent from July’s high of $3.96 a gallon to $3.68 in December.” the price of production for MN dairy farmers is “between $12.77 and $15.74 per hundredweight, according to FINBIN, a University of Minnesota agriculture economics database.”

Home prices low and getting lower Nationally, housing prices will bottom out in the fourth quarter, according to Moody’s Economy.com, reports Christopher Snowbeck in the PiPress, but MN housing prices probably won’t hit bottom until the first quarter of 2010. Moody’s predicts that Twin Cities housing prices will drop 24 percent from the 2006 peak.

Step forward, stumble back on stimulus plan That’s the analysis from the Center for American American Progress, which warns that the Senate compromise on the economic stimulus package, due to be passed today, would create between 430,000 and 538,000 fewer jobs than the House bill. Overall, “the Senate compromise would provide a great boost to the economy—but legislation closer to the House-passed version (or the version originally introduced in the Senate) would do more.”

Q Comp: A little comp, not so much Q The Governor’s educational flagship, Quality Compensation, came under scrutiny by the non-partisan legislative auditor’s office, which reported that, after three years, there’s really no measurement of whether the program has improved student achievement. Some 72 public and charter school districts participate in the program, which rewards teachers based on “performance” rather than on education and experience, and encourages teacher mentoring programs. The Guv wants to increase funding for the program by $41 million this year, but legislators are not so enthusiastic, Tom Weber reports on MPR The MN DOE spent $181,000 on its own independent study of Q Comp, released a day ahead of the legislative auditor’s study.

Emily Johns and Bob Von Sternberg wrote in the Strib that the Guv’s plans to mandate Q Comp statewide would not be fully funded by the $41 million increase he proposes. Participants give the program mixed reviews, according to MN 2020 education writer John Fitzgerald: “Over 80 percent of administrators in Q Comp settings agreed or strongly agreed that Q Comp had improved classroom teaching and will lead to increases in students’ performance on standardized tests at their school. Less than half of teachers in Q Comp settings who responded to our [legislative auditor] questionnaire felt similarly.”

Hey, be careful out there! According to the Minnesota Department of Public Safety, seven motorists were killed on MN roads in January, and six of them were not wearing seatbelts. That’s even higher than the norm, according to the AP report in the PiPress, which is about 55% of all annual traffic deaths in MN.

And this differs from blogging … how? The PiPress reports on-line:

A fire overnight has destroyed a house in St. Paul, a local television station is reporting.

Just below 11 p.m., firefighters were called to a home on the 800 block of Marion Street, WCCO-TV said. No one was home at the time and the house may have been vacant, the station said.

Walk on the wild side Coyotes are invading the Twin Cities, writes John Brewer in the PiPress. The “small, skulking cousin of the wolf” has been spotted near the Roseville library, fighting with a dog in Reservoir Woods, and standing on the frozen ice of Lake Calhoun a few years ago. (And, I might add, in alleys near the Town and Country golf course in St. Paul.) The PiPress says that the February-March coyote mating season will probably lead to more encounters. That doesn’t mean the Twin Cities are rural — Chicago boasts lots of coyotes and the Urban Coyote website with info on the wily critters and how to tell a coyote from a German Shepherd.

And one more wild animal story: the criminal charges against the man in Willmar who sprayed teens with fox urine to keep his yard from being toilet-papered.

The never-ending Coleman-Franken recount Punxsutawney Phil predicted six more weeks of winter, but no one is predicting when the end to the endless recount will arrive. Yesterday, the judges said they would look at no more than 4,800 of the 11,000 rejected absentee ballots that Coleman wants reviewed. According to Rachel Stassen-Berger in the PiPress , the court also said the law on absentee ballots is “clear, objective and unambiguous.” That probably means Coleman voters like Janet Czeck of Brooklyn Park, who testified that she just forgot to sign the ballot envelope, will not get their ballots counted. Coleman and Franken legal teams also agreed to withdraw any challenges to the 933 previously-rejected absentee ballots that were accepted and included in the recount. MinnPost sums it up nicely:

If you, Mr. or Ms. Voter, are among the 4,797, and you cast your vote by absentee ballot but you royally screwed up — like, say, didn’t sign it, or you voted in person, too, or you weren’t registered — your vote still won’t count.

No ifs, ands or buts, the court order seems to say.

But if an election judge happened to discard your vote by mistake or the lady at the counter who took your absentee ballot forgot to tell you to sign in … your vote just might count, the same court order seems to say.

Indeed, no more “The dog ate my ballot” stories from Coleman or Franken voters.

The votes in this new universe will only be counted if they were previously rejected through no fault of the voter.

Housing’s mixed bag Tim Nelson at MPR warns that as bad as the housing crisis looks now, it may be about to get worse again, as “high-risk loans … with obscure names like Cash-Flow ARMs, Pay Option ARMs, and Pick a Payment Loans” come due. Many of these loans, in what is called the “Alt-A” category, were made to more credit-worthy customers who were entrepreneurs or self-employed.

In Minnesota, for instance, there are only about half as many adjustable rate Alt-A loans as there are similar subprime loans.

But Minnesota’s Alt-A loans are about a third larger on average, and nearly twice as many are the most volatile interest-only loans. Many more are also secondary loans. That’s according to end-of-year data for 2008 from the New York Federal Reserve Bank.

And while Alt-A loans are generally better quality, and the borrowers better off financially than with subprime mortgages, no one knows how they’ll fare as unemployment grows and real estate values continue to plummet.

On the other hand, Jim Buchta writes in the Strib that “pending sales in the 13-county metro area during January rose a robust 17.7 percent, marking the seventh consecutive year-over-year monthly increase, according to an analysis of data from the Minneapolis Area Association of Realtors.” That’s about the only bright spot, as home sales prices continue to fall and getting a mortgage remains difficult for many buyers. And the pending sales included many distress sales, which were 32 percent of all active listings in the metro area in January.

Aiding and abetting in North Minneapolis The latest chapter in the Jordan Area Community Council contest, reports Sheila Regan in the TC Daily Planet, came in court yesterday as the “old” board officers sued to stop just about everybody they could think of from recognizing, aiding or abetting the newly-elected officers. Attorney Jim Moore represents some of the defendants, including the city of Minneapolis, Don Samuels, Barbara Johnson, and Mike Martin. As far as the city council members, he asked: “What is it that my clients are supposed to be restrained from, not taking sides, or voicing opinions about neighborhood issues?” The judge deferred a ruling, guaranteeing another day in court.

Borrowing new money to pay interest on old debts: A T-Paw idea Patricia Lopez reported in the Strib that the legislature is cool to the Guv’s proposal to borrow $973 million this year and repay it at a cost of as much as $1.6 billion over the next 20 years, all in order to pay the interest on current state debts, a plan the Strib likens to refinancing credit card debt by taking out a mortgage on your house. Rep. Tom Rukavina (DFL-Virginia) has another name for it: “really a stupid idea.”

MN Job Watch Looked at the City of St. Paul website yesterday, and saw a big “no jobs available” message. But, on a more positive note, the PiPress reports that Vascular Solutions, a TC med-tech firm, plans to hire about 25 people across the state as it increases production. Bad news: AP reports that Phoenix Industries in Crookston, which employed about 100 people a few months ago, then cut to 20 employees, will not close its doors.

On the national/international scene, the jobs hemorrhage continues, with mass layoff notices from PNC Financial, Liz Claiborne, Beechcraft (airplanes), King Pharmaceuticals, amd Rockwell Collins (military). GM is offering buyouts to all hourly workers. UPS is freezing pay and stopping matching contributions to employee 401(k) plans.

New federal unemployment figures for January will be released this week.