News Day: More on MN deficit and recession

March 4: Back to school / MN Job Watch / TCF and TARP / TOP SECRET no longer / Sudan, Afghanistan, Mexico and more

Budget deficit: Day 2 In the aftermath of the revelation that the economic stimulus will keep the red ink from rising higher, lawmakers and the governor are back to sparring over how to make up the $4.6 billion deficit. A trio of MPR reports gives context: State Finance Commissioner Tom Hanson warned that the long-term problem will get worse, with a $5.1 billion deficit forecast for 2012-13, and that the economic stimulus is a one-time rescue that does not solve the structural problem.
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News Day: Feds rescue MN budget deficit

March 3: More news — Coleman asks for new election / Cut, cut, cut / Medicare paying off insurance companies / City Council putting brakes on Central Corridor plans? / Lock ’em up / MN Job Watch

MN budget deficit: better news MPR reports that the budget projections due out later this morning will show good news for Minnesotans, with federal stimulus money riding to the rescue. Without the federal aid, the two-year deficit was projected to grow to $6.4 billion, but with the aid, it will shrink to $4.57 billion (from the previously-projected $4.8 billion.) That’s about the only good news, with unemployment up, tax revenues down, and the Guv stlll insisting on balancing the budget by slashing LGA and other state expenditures and refusing to consider tax increases.
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News Day: It’s the economy (and the budget deficit and the CitiGroup and AIG bailouts)

More March 2 stories: The weather! / Facebook and Lent / Recount / Scam alert / Momos and pizza / Head scarves and gangbangers? / Some good news! / Welfare freeze / Miss North Dakota arrested in Iran

Stormy weather ahead Billions in bad news is expected when State economist Tom Stinson issues the next state budget forecast on Tuesday, writes Bill Salisbury in the PiPress. In December, Stinson forecast the $4.85 billion deficit that has had everybody from the capitol to city hall scrambling to slash budgets, and the betting is that the new prediction will be $6 or $7 billion.
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News Day: Budget, ballots, bishops, Bill Holm and more

February 27, 2009
The Budget Obama’s ten-year budget plan lays it all out, including a record $1.75 trillion deficit this year and, for the first time, putting the war costs into the budget.

The Ballots The three-judge panel reversed itself on Thursday, allowing testimony from a Republican election judge despite the Coleman legal team’s violation of rules of civil procedure — and thereby eliminated one possible grounds for appeal of their eventual decision.
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The budget: Obama’s ten-year plan

The White House released a 10-year, 134-page budget plan yesterday, projecting a record $1.75 trillion deficit by September 30, and pledging to cut that in half by the end of his term. According to NPR:

The deficit would remain near $1 trillion over the next two years before dropping to $581 billion in 2012 and $533 billion in 2013, the year that Obama has pledged to cut in half the deficit he inherited.

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News Day: Carstarphen going to Texas – and in other news: Getting rid of environmental watchdog; First Dog; Pig brains; Workers’ comp abuses–by insurers; Cartel crackdown; Smoking in cars; Around the world in 90 seconds, and more

Carstarphen going to Texas The Austin school trustees >voted unanimously to hire Meria Carstarphen as superintendent on Thursday morning, ending the suspense over her future plans.
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News Day 2/25/09: Carstarphen still coy / Govt funds for MSM / Mueller and the mosque / MN Job Watch, recount, more

Carstarphen still coy St. Paul schools superintendent Meria Carstarphen still isn’t talking about whether she is a candidate for the Austin, TX superintendent’s position, reports Doug Belden in the PiPress, and she’s also not answering questions about whether she has applications in anywhere else.

Meanwhile, a consultant report on SPPS physical plant got mixed characterization, with Doug Belden in the PiPress quoting the report as finding that the district’s 79 buildings are in “average” shape, while Emily Johns in the Strib gave SPPS “an ‘A’ for upkeep.” Find the Powerpoint presentation from the consultants to the board of education on the SPPS website.

Obama nails it In a rousing 52-minute speech, President Barack Obama hit the campaign trail again, declaring energy, health care and education the top priorities for America. Full text here. Minneapolis got a mention: “There are 57 police officers who are still on the streets of Minneapolis tonight because this plan prevented the layoffs their department was about to make.”

MN funds for private biobusiness park The MN Department of Employment and Economic Development granted another $1.2 million to complete infrastructure projects for the Elk Run Biobusiness park north of Rochester, bringing total state money for the project to $1.8 million. Sea Stachura reports on MPR that investors have been meeting with state officials and an announcement on the project is expected soon.

Them that has MN has seen a big crop of lively on-line media growing up in the past few years, including the Twin Cities Daily Planet, which I edit, so I won’t brag about it here; The Uptake, with dramatic RNC footage and gavel-to-gavel coverage of the recount; the Minnesota Independent, offering intensive political coverage and much more; and MinnPost, which looks a lot like an online version of the Strib that Joel Kramer once edited, which is to say among the best of the mainstream media back in the day. All of these on-line and non-profit media organizations (and others) are scrambling for funding.

So now comes the Minnesota Job Skills Partnership program, with a $238,000 grant of government funds to the U of M School of Journalism and Mass Communications and the St. Paul Pioneer Press and the Duluth News Tribune to retrain newspaper staffs for “a mix of learning new computer programs to help sell advertising and tell news stories, and fundamentally rethinking how to deliver news and advertising.”

Rob Karwath, executive editor of the News Tribune, said he envisions money going toward rethinking how to sell new products that deliver news and advertising to readers, and setting up methods to increasingly receive feedback from customers.

Guess the Duluth News Tribune needs more reporting, as David Braure reports all of the Strib’s coverage of MN will now take place from its Minneapolis office. The Strib is pulling Larry Oakes out of Duluth and back to Minneapolis.

MN Jobs Watch AP reports that Cliffs Natural Resources plans cutbacks and temporary shutdowns at its taconite plants, possibly laying off 83 HibTac workers for more than six months. MPR says that Northshore Mining’s 557 workers will be laid off during April as that plant closes for a month.

MN-based Medtronic is cutting its global workforce, reports the Strib. About 8,000 of Medtronics 38,000 employees work in MN. Last year Medtronic cut 1100 jobs worldwide, with about 350 of those in MN. Execs took a five percent pay cut.

41 percent drop in profits – could be worse I had to read on when the Strib said targets 41 percent drop in earnings during the 4th quarter was really not so bad. Part of my confusion is that the headline said profits dropped and the first paragraph said earnings dropped — two distinctly different measures. Halfway through the article, some hard numbers appeared. Target revenue (earnings) was down $19.56 billion, 1.6 percent below 2008’s fourth quarter. Its net income (profits) “fell about 22 percent to $2.85 billion, or $2.86 a share,” while annual sales (earnings) grew 2.3 percent.

The reason that Target’s bad news is not so bad is that all retailers — except low-end leaders WalMart, Costco and Dollar Store — are seeing gigantic drops in earnings, reflected in fourth-quarter reports released yesterday. In other business news, Home Depot reported a 4th-quarter loss of $54 million, which is bad but better than previously expected,

And now … Pawlenty gets to decide on the Senate race? If the three-judge panel awards victory to Al Franken, will he get to go to Washington at last? Maybe not, warns Tom Scheck on MPR. The governor and the secretary of state sign an election certificate when there is a “final determination” of the contest, but Norm Coleman will almost certainly appeal any adverse decision, and T-Paw could say that nothing is final until all appeals are exhausted. Exhausted is the way that most Minnesotans feel about the whole process, but Pawlenty has previously said that he thinks Coleman has a good chance of winning an appeal, so he’s not likely to sign until the MN Supreme Court rules on an appeal. And then, there’s the possibility of an appeal to the U.S. Supreme Court …

Mueller and the mosque FBI director John Mueller said in a speech to the Council on Foreign Relations that a Minnesota Somali man carried out a suicide bombing in Somalia after Shirwa Ahmed “was radicalized in his hometown in Minnesota.” Mueller gave no details on how the alleged suicide bomber was “radicalized,” but his remarks ramped up hostility to Somalis and Muslims in Minnesota once again, reports Laura Yuen on MPR.

Jessica Zikri, a spokeswoman for the Minnesota chapter of the Council on Islamic-American Relations. Zikri said many Somalis are living in fear as federal authorities continue their investigation into the missing.

“They’ve already been receiving phone calls and were stopped by the FBI,” Zikri said. “And then hearing these allegations vaguely connected to Minnesota just add fuel to the fire.”

That fire continues in Minnesota streets, with hostility expressed toward both Somalis and Muslims. To combat misunderstanding and prejudice, As-Saddique Islamic Center will welcome neighborhood residents and organizations for a community dinner intended to increase understanding about the local Somali Muslim community and mosque tonight. Organizers have invited FBI director Robert Mueller to attend.

Mardi Gras marchers protest police Mardi Gras marchers went from the State Capitol to St. Paul City Hall to file notice-of-claim forms based on events during the RNC, reports John Brewer in the PiPress. Meanwhile, over in the Ramsey County court, prosecution and defense attorneys accused each other of trying the case in the press, and prosecutors complained that too much secret police information was becoming public.

Writing with less The Loft Literary Center cut two full time employees, and everyone else is taking pay cuts,

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Like a house on fire: Education in Minnesota

If your cell phone rang with a message that your house was on fire, you’d get up and leave — immediately, no question about it. That degree of urgency, that recognition of an emergency situation, is what we all need to feel about student achievement in our schools, said Phil Davis, the president of Metropolitan Community and Technical College (MCTC), speaking at a Wilder Foundation-sponsored forum on increasing postsecondary education access and success.

Speakers and panelists described programs that succeed in getting lower-income students and students of color into colleges and helping them to succeed. The three-year-old Power of YOU program doubled the number of under-represented (low-income and students of color) graduates of Minneapolis and St. Paul high schools going to Minnesota public colleges in the Twin Cities during its first two years of operation. The program combines student support services throughout high school with free tuition for two years at MCTC, St. Paul College and Metropolitan State University.

The morning program, Making the Grade: Increasing postsecondary education access and success had a clear message: We know what works. The Wilder Foundation is rightly known for careful research, and their evaluation of the first two years of the Power of You program showed what works:

• Free tuition is a powerful incentive, especially when paired with accurate cost and financial aid information. Responding to a question about the single most significant change to increase educational opportunity for underrepresented youth, State Senator Sandy Pappas suggested free tuition for the first two years of college. Students in the target group generally overestimated the cost of going to college and did not know about available financial aid.

• “Students who participated in community service learning and in mentoring were more likely to be in good academic standing after one year,” according to the Wilder research. They also tended to have higher GPAs. Both academic and non-academic supports are needed for success.

• Better preparation is essential, from reaching students earlier in their educational career to aligning high school curriculum with college entrance requirements to offering summer and after-school remedial and college prep courses.

St. Paul Central High School principal Mary Mackbee emphasized the importance of preparing every student to attain a post-secondary degree, whether that means completing vocational/technical training courses, two-year college programs or academic study in four-year colleges and graduate schools. Mackbee cited partnerships such as Power of YOU, AVID, College in the Schools, and Admission Possible as powerful levers for increasing the college attendance by low-income students and students of color.

Wilder research director Paul Mattessich pointed out that in the seven-county metro area, about three percent of adults 65 and older are people of color, while 22 percent of children under the age of 10 are people of color.

Mattessich noted that 80% of growth occupations require at least some post-secondary education. He cited Bureau of Labor Statistics figures showing that 79 percent of occupations with above average projected growth and above average wages require completion of post-secondary degrees. He emphasized the importance of increasing post-secondary education access and success for youth of color, both for the success of individuals and for the economic well-being of the community.

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Obama speech hits another home run

“What is required now is for this country to pull together, confront boldly the challenges we face, and take responsibility for our future once more.” With that declaration, President Barack Obama delivered another ringing call to action, devoting nearly all of his February 24 address to a joint session of Congress to what the country needs to do to rebuild and recover. The 52-minute speech was interrupted 50 times by applause.

The full text of the 52-minute speech includes international policy, tax cuts and promises to cut the deficit. En Español

Declaring that the country’s agenda “begins with jobs,” Obama thanked Congress for passing the American Recovery and Reinvestment Act, which he said will save or create 3.5 million jobs, more than 90 percent in the private sector, and will give tax cuts to 95 percent of working households. He insisted on the importance of re-starting lending and promised more stringent oversight of bailouts to banks.

Turning from plans for recovery to a vision for the future, Obama said the nation has three priorities:

Energy: “[T]o truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy.” that means transformation of the auto industry, as well as doubling the nation’s supply of renewable energy, and increasing energy efficiency.

Health Care: “[T]he cost of our health care has weighed down our economy and the conscience of our nation long enough. So let there be no doubt: health care reform cannot wait, it must not wait, and it will not wait another year.”

Education: Obama called the mismatch between fast-growing occupation sectors that require education and “the highest high school dropout rates of any industrialized nation,” a “prescription for economic decline, because we know that countries that out-educate us today will out-compete us tomorrow.” He called for both increased funding and reform, gave a ringing endorsement to the charter school movement, and warned that “dropping out of high school is no longer an option. It’s not just quitting on yourself, it’s quitting on your country – and this country needs and values the talents of every American.”

President Obama held up a banker, a student, and a town as examples of hope:

• “Leonard Abess, the bank president from Miami who reportedly cashed out of his company, took a $60 million bonus, and gave it out to all 399 people who worked for him, plus another 72 who used to work for him. ”

• “Greensburg, Kansas, a town that was completely destroyed by a tornado, but is being rebuilt by its residents as a global example of how clean energy can power an entire community.”

• Ty’Sheoma Bethea, a student from a South Carolina school “where the ceilings leak, the paint peels off the walls, and they have to stop teaching six times a day because the train barrels by their classroom.” She sent a letter to Congress asking for help, writing: “We are just students trying to become lawyers, doctors, congressmen like yourself and one day president, so we can make a change to not just the state of South Carolina but also the world. We are not quitters.”

Echoing her words, Obama said that Americans are not quitters, that “even in the most trying times, amid the most difficult circumstances, there is a generosity, a resilience, a decency, and a determination that perseveres; a willingness to take responsibility for our future and for posterity.”

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News Day 2/24/09: T-Paw ready to eat the pizza / Wind on the wires / Coleen vs. Big Bob / Mpls school desegregation, and more

T-Paw will take the money Governor Tim Pawlenty said Minnesota will take all the money it can get from the $787 billion economic stimulus plan, even though he has called it “a meandering spending buffet.” Continuing the food metaphors on Monday, , writes Kevin Diaz in the Strib, T-Paw said “For every dollar we send out … we only get 72 cents back. So, if you’re buying the pizza, it’s OK to have your slice, even if there are some anchovies on it.” Only a few of his GOP counterparts are still talking about turning down the stimulus money, reports NPR, including Mississippi Gov. Haley Barbour, who objects that the stimulus package is “filled with social policy.”

Wind on the wires: Bigger isn’t better Wind power is great green energy, but the proposals for 130-foot transmission towers marching across MN are a bad idea. Here’s my explanation of what’s wrong with the proposed $12 billion grid, and where to look for a greener solution.

Burris blowing it Illinois Senator Roland Burris has failed to mount an effective PR defense, according to Politico, after new allegations about his involvement with disgraced former Illinois Gov. Rod Blagojevich. Both an Illinois prosecutor’s office and the Senate Ethics Committee are now investigating charges that Burris failed to disclose conversations with Blagojevich’s brother about raising money for the governor, when he testified under oath in impeachment proceedings. Burris admitted the conversations in a February 5 affidavit, and then, on February 16, admitted that “he actually tried to raise money for the governor at the same time he was expressing interest in the Senate seat.”

Ditching desegregation Minneapolis wants out of the Twin Cities’ desegregation district, writes Norman Draper in the Strib. the West Metro Education Program began in 1989, with Minneapolis and 10 suburban districts planning to promote racial integration and narrow the achievement gap. WMEP has two magnet schools: the Interdistrict Downtown School in Minneapolis and the Fine Arts Interdisciplinary Resource school in Crystal. Minneapolis superintendent Bill Green said the schools have had little impact on the achievement gap and have done little to change racial disparities between Minneapolis and the suburbs. The Minneapolis school board is scheduled to vote on the proposal March 10.

RNC back to court As the RNC8 defendants go back to court this week, with motion hearings before a new judge, FBI whistle-blower-turned-activist Coleen Rowley is set to file notices of claim against Sheriff Bob Fletcher, Ramsey County and the State of MN, reports Chris Steller in MN Independent. The complaints focus on “aggressive ‘police state’ action during the RNC ,” and on Big Bob’s refusal to comply with requests for information since then. Rowley knows her way around a Freedom of Information Act request. While she’s fililng them now, it was her job to respond to FOIA requests as an FBI agent in the 1980s.

Fast trains on fast track High speed rail gets $8 billion under the economic stimulus package, reports Brian Naylor at NPR, and MN may be among the beneficiaries. While California is ready to roll with bonding already approved, the Minneapolis-Chicago corridor is one of the half-dozen priority corridors identified by Transportation Sec. Ray LaHood.

Scholarship aid for state budget? The fed stimulus bill includes more money for Pell Grant scholarships, raising the max from $4731 to $5500 in 2010-2011. Because MN state grants and Pell grants are tied together, that won’t mean more money for low-income MN students, reports Jenna Ross in the Strib. Instead, it will mean the state grant fund will save money as the fed funds make up a larger part of the MN grant package. Unless the legislature changes the grant formula, the MN treasury, rather than low-income students, will benefit by $60 million from the increase in fed scholarship money.

MN Job Watch With MN unemployment claims up more than 60% in January 2009, compared to January 2008, WorkForce Center employees are seeing the psychological impact on people who have worked all their lives and now face unemployment and no job prospects, reports Lisa Peterson in the Daily Planet. While 80 percent of MN unemployment claims are made on-line, that doesn’t work smoothly for everyone:

Applying online can be tricky, though, especially for those who may not have the tools to navigate the system. For example, one question refers to whether an applicant was “Laid Off,” “Terminated,” or “Discharged,” which frequently confuses applicants, especially those with limited language proficiency. Simple errors can delay benefits for days if not weeks.

In Plymouth, a four-month lockout by the Progress Casting Group’s foundry continues, with no end in sight, reports Larry Sillanpa for Workday MN.

“We’ve got a lot of guys who have worked there for 30 years or more, one’s been there for 47 years,” said Hill, who has been Shop Chairman for 10 years. “45 percent of the workers have 10 or more years.”

Now all 200 of the AFL-CIO-affiliated members are out of work as scab replacement workers do their jobs.

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