ST. PAUL, Minn. - Job creation has been identified by state lawmakers as a priority this session. But as the legislature finalizes budget negotiations this week, some observers are concerned that the cuts-only approach taken so far could mean a 12-percent cut to one of the state's more successful job-training programs.
Latrice Williams completed training last year that was funded by the Minnesota Jobs Skills Partnership. She landed a job at U.S. Bank within a month, and has a message for lawmakers considering such cuts.
"Don't cut it. So many people need this. So many people don't have the opportunities, don't have the skills they need to succeed. This program can change people's lives; it changed my life, it changed my kids' lives. Everyday I wake up and I am grateful for this program, because without this program I wouldn't be here - I wouldn't be where I'm at today."
Not long ago, the single mother of four had no high school education and few job prospects. Completing her GED and then going through training at Project for Pride in Living, a Jobs Skills Partnership program site, gave Williams the skills and confidence to land a good job.
"We got great coaching for interviewing skills, how to keep our job, and what we can do to improve the things that caused us not to have a job in the past. It changed my life. I got a job that I can be at forever because I went through this banking class and I didn't give up - and I didn't have people give up on me."
For the first time in a long while, Williams says, she is optimistic about her family's future. She adds that she would like to go to college for banking and finance, and advance her career options.
Steve Cramer is the executive director of Project for Pride in Living. He says Williams's story illustrates how a relatively small investment can reap major rewards.
Cramer points out that the next generation of Minnesotans is becoming increasingly more ethnically diverse, so it's important to provide them with a bridge to employment.
"Programs like this really are critical, if we look down the road 10 or 15 or 20 years, to making sure that the state has a trained workforce that can really allow us to stay competitive."
In the context of a $5 billion dollar deficit, it's tempting to slash a little here and there, Cramer admits, but he warns that the state is bound to pay a hefty price if workforce development is neglected.
"I think the state's best economic interest is served by a trained workforce, a strong higher-education system, a strong K-12 system, a strong social safety net. Those are the fundamental building blocks of a healthy Minnesota. My hope is that the legislators find some more balanced approach."
According to the most recent Job Skills Partnership annual report, the program matches more than $2 of business, higher-education and philanthropic investment for every dollar the state pays. Depending on the type of training, the average hourly wage of trainees who secured work ranged from almost $12 dollars to more than $23 dollars.
The Jobs Skills Partnership annual report is available at http://bit.ly/l1AdYc.
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As many Minnesotans dig out from an early Spring snowstorm, the future of a federal program that helps low-income households pay their heating bills is less certain. State-level voices cite new spending cuts under the Trump administration. The most recent mass layoffs may include the entire staff that administers the Low-Income Home Energy Assistance Program - according to reports seen by the Citizens Utility Board of Minnesota. The "LIHEAP" funds are sent to state agencies for distribution.
Annie Levenson-Falk, Citizens Utility Board of Minnesota director, worries about payment delays for Minnesotans in need if federal staff isn't there.
"It's pretty concerning to see just the complete elimination of the staff on what is a vital and extremely popular program," she explained.
In an e-mailed statement, the Minnesota Commerce Department says so far this season, the program has helped about 107,000 households cover their utility bills. Amid the staffing upheaval, it anticipates running out of funds to help new applicants as early as mid-April.
The loss of LIHEAP staff comes at a time when energy customers are bracing for potentially higher bills economists link to the escalating trade war pursued by President Donald Trump. Levenson-Falk said her organization is watching to see how this region could be affected as America's trade partners respond to sweeping tariffs.
"It's going to really vary depending on where you live. Some utilities get a lot of electricity from Canada and some get much less, but I do think it could have a substantial effect on a lot of Minnesotans," she continued.
Minnesota officials are not only worried about the effects as the last bit of winter weather hangs on. There is also concern about what will happen this summer to households at risk, between the disruption of energy assistance and tariff-induced price hikes.
Levensen-Falk encouraged people who are eligible for aid to keep applying, and reaching out to service providers with questions.
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Backlash is mounting across the U.S. in response to the Trump administration's consistent push to cut federal staffing and programs. North Dakotans not happy with these moves will join another wave of protests this weekend. On Saturday, organizers in towns and cities nationwide will lead what are billed as "Hands Off" events. Demonstrators want to bring renewed focus to the level of cuts pursued by the White House, and the abrupt manner in which they're being carried out.
Lyn Dockter-Pinnick, lead of the grassroots group Red River United Indivisible, feels uneasy about what she calls a "slash and burn" mentality within the administration.
"And so, the concept of "Hands Off" is really not only saying, 'This isn't right, this isn't OK,' but also just concern over the speed and the upheaval that is happening," she said.
She is worried about services for military veterans, such as suicide prevention. The White House says it wants to root out waste and fraud. Dockter-Pinnick says reform is important, but adds that checks and balances are being ignored, citing the influence of wealthy adviser Elon Musk and the Department of Government Efficiency. Regional events this Saturday will be held in Fargo, Grand Forks, Bismarck and Minot.
While North Dakota residents express their frustration, state agencies and nonprofits are adjusting on the fly as cuts are announced. This week, federal officials began laying off ten-thousand Health and Human Services workers.
Seth O'Neill, executive director of the North Dakota Domestic & Sexual Violence Coalition, says that includes staffers who oversee grants his network of crisis centers relies on.
"It's unnerving when you don't know who to call to get answers because you don't know who is still employed at the federal government," he explained.
While the actual prevention grants haven't been cut yet, O'Neill is still worried about their fate. He notes that for these crisis centers, federal funding makes up 30% of their budget. Late last month, North Dakota Health and Human Services officials were left scrambling after being notified that several grants, focusing on substance abuse and mental-health treatment, were terminated early.
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The Trump administration announces its new wave of tariffs Wednesday, and with U.S. Department of Agriculture funding still a question mark, Minnesota farmers are having trouble planning ahead.
Ag economists say the latest tariffs and retaliatory moves by trade partners could be blows felt by farmers and ranchers, especially for beef and pork.
Cindy VanDerPol and her husband, owners of Pastures A Plenty Farm in western Minnesota, are monitoring market upheavals due to tariffs and just saw a one-year pause in federal grants to help supply locally grown food to schools. She said it makes it hard to map out what they need to buy for the year.
"Do we go and purchase more laying hens? Do we purchase broiler chickens to be processed later on?" VanDerPol asked. "Those all are uncertainties right now."
She pointed out they would already have made such moves. VanDerPol added the uncertainty does not just potentially limit her farm's output but also demand for local meat processors. As in the first Trump administration, the USDA is weighing emergency aid for farmers if needed. But economists warned countries like Brazil are bigger ag competitors now and if a trade war heats up, foreign markets could just look there.
Federal officials have released some agriculture funding initially frozen during downsizing efforts led by the White House.
Jennifer Fahy, communications director for Farm Aid, said there are still not enough details about grants seeing movement again, leaving farmers in the lurch.
"The very fact that this money that is legally due to them is being held up and they're not getting any answers on when they might receive it, if at all, it's creating inordinate stress that really is completely unnecessary and damaging to our entire food system," Fahy contended.
Fahy noted it also could mean layoffs for farmworkers, as some operations downsize or close.
Gary Wertish, president of the Minnesota Farmers Union, said when other things like rising interest rates are factored in, farmers face a crisis similar to the 1980s, when the nation lost millions of farms.
"That's where we're fearful of, that we could very easily be back into that '80s crisis time frame," Wertish cautioned.
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