“Rethinking Minnesota Taxes”€¦ · n February 23, the House Tax Committee scheduled 45...

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BOARD OF DIRECTORS Dan Cramer Ron DeHarpporte Arlen Erdahl David Foster Lew Freeman Tom Gegax, Secretary Sylvia Kaplan Joel Kramer Ross Levin David Lillehaug Lee Lynch, Chair Chris Mahai Tom McBurney Larry Meyer Michael O’Keefe Erik Peterson Mark Ritchie Martha Meyers, Treasurer Jorge Saavedra Tina Smith Emily Anne Tuttle Tene Wells Betsey Whitbeck, Vice Chair O n February 23, the House Tax Committee scheduled 45 minutes for a discussion of Growth & Justice’s tax strat- egy proposal for Minnesota, and ended up devoting twice that much time to it. One day later, the Senate Tax Commit- tee heard Growth & Justice’s plan, and it, too, ran long. A number of members in both houses and both parties remarked afterward that they appreci- ated the opportunity to look at the tax system strategically – as a single big picture – explor- ing what’s fair, and hearing about research on how different changes might affect economic growth. It was a change of pace from how they spend a lot of their time, listening to special pleadings for one tax exemption or another. The Growth & Justice plan, “Rethinking Minnesota Taxes: Fairer for families and better for business growth,” proposes a swap of higher income taxes on high incomes for lower taxes on business, and says this could happen if conservatives would give up their cherished (and wrong) belief that high income taxes are bad for business and liberals would give up their cherished (and wrong) belief that high business taxes are progressive. The plan also includes broadening the consumer sales tax to more items and lowering the rate. To see the presentation, and supporting materials, go to www.growthandjustice.org . Among the livelier aspects of the Q&A with legislators: Some Republicans in the House doubted the evidence that there is no clear link between higher income tax rates and lower economic growth because they knew people who had left Minnesota over income taxes. Growth & Justice Executive Director Joel Kramer responded that anecdotes aren’t the same as an overall picture of what’s happening. Some also raised the question of what’s fair: The wealthy already pay most of the taxes, even if they don’t pay as high a proportion of their income, and they don’t use more services. Joel Kramer responded that an argument could be made that the wealthiest benefit most from government services that protect property continued on next page Volume 2 Mar. 2005 2324 University Ave. West, Suite 201 St. Paul, MN 55114 phone 651-917-6037 fax 651-641-7223 www.growthandjustice.org CENTER FOR A PROSPEROUS, FAIR & SUSTAINABLE MINNESOTA ECONOMY JOEL KRAMER testified before both the House and Senate Tax Committees about the Growth & Justice “Rethinking Minne- sota Taxes” proposal. More than 60 legislators and staff, 50 tax officials and lobbyists, and many other interested citizens have already engaged in discus- sions about the proposal. Growth & Justice launches “Rethinking Minnesota Taxes” with hearings at the legislature STAFF EXECUTIVE DIRECTOR Joel Kramer ASSISTANT DIRECTOR Lori Schaefer RESEARCH & POLICY DIRECTOR Baris Gumus-Dawes ADMIN & PROJECT ASSISTANT Emily Saunoi-Sandgren INSIDE Policy leaders respond to “Rethinking Minnesota Taxes” ........................................ 2 Thank You 2004 G&J Supporters ............ 4 Workforce First inspires Early Care & Learning Act .......................................... 6 Meet the new G&J staff ............................... 8

Transcript of “Rethinking Minnesota Taxes”€¦ · n February 23, the House Tax Committee scheduled 45...

Page 1: “Rethinking Minnesota Taxes”€¦ · n February 23, the House Tax Committee scheduled 45 minutes for a discussion of Growth & Justice’s tax strat-egy proposal for Minnesota,

BOARD OF DIRECTORSDan Cramer

Ron DeHarpporteArlen ErdahlDavid FosterLew Freeman

Tom Gegax, SecretarySylvia KaplanJoel KramerRoss Levin

David LillehaugLee Lynch, Chair

Chris MahaiTom McBurney

Larry MeyerMichael O’Keefe

Erik PetersonMark Ritchie

Martha Meyers, TreasurerJorge Saavedra

Tina SmithEmily Anne Tuttle

Tene WellsBetsey Whitbeck, Vice Chair

On February 23, the House Tax Committee scheduled 45 minutes for a discussion of Growth & Justice’s tax strat-egy proposal for Minnesota,

and ended up devoting twice that much time to it. One day later, the Senate Tax Commit-tee heard Growth & Justice’s plan, and it, too, ran long.

A number of members in both houses and both parties remarked afterward that they appreci-ated the opportunity to look at the tax system strategically – as a single big picture – explor-ing what’s fair, and hearing about research on how different changes might affect economic growth. It was a change of pace from how they spend a lot of their time, listening to special pleadings for one tax exemption or another.

The Growth & Justice plan, “Rethinking Minnesota Taxes: Fairer for families and better for business growth,” proposes a swap of higher income taxes on high incomes for lower taxes on business, and says this could happen if conservatives would give up their cherished (and wrong) belief that high income taxes are bad for business and liberals would give up their cherished (and wrong) belief that high business taxes are progressive. The plan also includes broadening the consumer sales tax to more items and lowering the rate. To see the presentation, and supporting materials, go to www.growthandjustice.org.

Among the livelier aspects of the Q&A with legislators:

• Some Republicans in the House doubted the evidence that there is no clear link between

higher income tax rates and lower economic growth because they knew people who had left Minnesota over income taxes. Growth & Justice Executive Director Joel Kramer responded that anecdotes aren’t the same as an overall picture of what’s happening. Some also raised the question of what’s fair: The wealthy already pay most of the taxes, even if they don’t pay as high a proportion of their income, and they don’t use more services. Joel Kramer responded that an argument could be made that the wealthiest benefit most from government services that protect property continued on next page

Volume 2 Mar. 2005

2324 University Ave. West, Suite 201 St. Paul, MN 55114 phone 651-917-6037 fax 651-641-7223 www.growthandjustice.org

CENTER FOR A PROSPEROUS, FAIR &SUSTAINABLE MINNESOTA ECONOMY

JOEL KRAMER testified before both the House and Senate Tax Committees about the Growth & Justice “Rethinking Minne-sota Taxes” proposal. More than 60 legislators and staff, 50 tax officials and lobbyists, and many other interested citizens have already engaged in discus-sions about the proposal.

Growth & Justice launches “Rethinking Minnesota Taxes”

with hearings at the legislature

STAFFEXECUTIVE DIRECTOR

Joel Kramer

ASSISTANT DIRECTORLori Schaefer

RESEARCH & POLICY DIRECTORBaris Gumus-Dawes

ADMIN & PROJECT ASSISTANTEmily Saunoi-Sandgren

INSIDEPolicy leaders respond to “Rethinking Minnesota Taxes”........................................ 2

Thank You 2004 G&J Supporters ............ 4

Workforce First inspires Early Care & Learning Act .......................................... 6

Meet the new G&J staff ............................... 8

Page 2: “Rethinking Minnesota Taxes”€¦ · n February 23, the House Tax Committee scheduled 45 minutes for a discussion of Growth & Justice’s tax strat-egy proposal for Minnesota,

continued from previous page rights and from investments in infrastructure and education that benefit businesses.

• Senate Tax Chair Larry Pogemiller ex-pressed great surprise over a chart from an Ernst & Young study showing that Minne-sota has below average business taxes, when you measure all taxes paid by business as a percentage of private sector activity. Sen. Pogemiller said you’d never suspect that based on all the testimony he has heard from business groups about high taxes. To this point, Joel Kramer responded that those who argue that we have a bad business tax climate are including the personal income tax and the overall tax level, not just taxes paid by businesses.

It’s too soon to know if any bill will be written this year incorporating Growth & Justice’s strategy, but there are plenty of indications that it’s affecting the thinking of a number of key legislators about how best to raise revenue for the state.

Citizens engage in rethinking Minnesota taxes

In total, nearly 200 people participated in Growth & Justice’s Tax/Revenue project leading to the “Rethinking Minnesota Taxes” report. Thanks to those who took the time to attend our roundtable or work group discus-sions around the state, and those who shared their input via our website.

A very special thank you to:

• Sarah Aadland & Bill Mague, project researchers

• Rep. Connie Bernardy, legislative re-search sponsor; and House nonpartisan research and fiscal staff

• Charlie Quimby, Words-at-Work, pre-sentation development

• David Schultz, Pam Neary, John James, Julie Bunn, and others who contributed to early research

• The Robins, Kaplan, Miller & Ciresi, LLP Foundation, and the Otto Bremer Foundation who provided support for the Tax/Revenue Project; as well as the hundreds of other individuals and founda-tions who support our work.

2 2324 University Ave. West, Suite 201 St. Paul, MN 55114 phone 651-917-6037 fax 651-641-7223 www.growthandjustice.org

Policy and community leaders respond to Growth & Justice’s “Rethinking Minnesota Taxes”

“The Growth & Justice tax plan makes a lot of sense. Many Minnesotans don’t know that the wealthiest currently do not pay their proportional share in overall taxes. Also, I like the fact that Growth & Justice doesn’t just talk to people who agree with each other, but looks for people who have dif-fering viewpoints. That’s how you get good policy.”

—Bill Hansen, Owner, Sawbill Outfitters; participant in Duluth roundtable discussion

“GROWTH AND JUSTICE’S TAX PROJECT is important because Minnesota’s tax system needs improvement. It needs stable revenue sources so the state’s contribution to the economy can continue. And, a different mix of taxes could make taxes less burdensome on families with tight budgets. Growth and Justice is asking all the right questions and is getting key leaders to join in.”

—Wayne Cox, Minnesota Citizens for Tax Justice

“AS A MEMBER OF THE HOUSE TAX COMMITTEE, I appreciated the opportunity to look at the entire state and local tax system from a strategic perspective vs. dealing with one tax or one proposal at a time. Growth & Justice’s approach challenges assumptions about taxes from both liberals and conservatives. This work is enlightening, and the approach is needed to get people working together on good tax policy for Minnesota.”

—State Representative Connie Bernardy (Fridley), House Tax Committee, and legislative research sponsor of

Growth & Justice’s tax study

“WE NEED MORE ORGANIZATIONS like Growth and Justice who are willing to challenge the assumptions of both major political parties. Minnesotans expect legislators to look for common ground and Growth and Justice is helping us do so.”

—State Representative Ann Lenczewski (Bloomington), Lead Democrat, House Tax Committee

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“Rethinking Minnesota Taxes:” Coming soon to a newspaper or meeting room near you

After a year of research and public discussions with interested citi-zens around the state, Growth

& Justice launched its plan to make Minnesota taxes fairer for families and better for business.

The rollout of the tax proposal was reported in both metro newspapers and on at least two radio stations. Last week, the Duluth News-Tribune pub-lished an op-ed by Joel Kramer about the proposal, and the next Citizens League Minnesota Journal will include an article. In the month since the launch, Growth & Justice has met with groups of legislators, business people and other interested citizens.

Earlier this month, Joel Kramer spoke to the Minnesota Women’s Economic Roundtable, and at the end of the month he will be speaking at two DFL Education Foundation groups. Discussions are currently being planned for Northfield and St. Cloud in early April.

If you would like to host a Growth & Justice “Rethinking Minnesota Taxes” discussion with 15 or more people, or invite Joel Kramer to speak to your group, contact us at 651-917-6037 or [email protected].

&“WE APPRECIATE GROWTH & JUSTICE’S determination to get the business community’s perspective and its recognition that business taxes are regressive.”

—Tom Hesse, Minnesota Chamber of Commerce

“AS A SMALL BUSINESS OWNER, I am glad that Growth and Justice has recognized that it is people who ultimately bear the burden of paying taxes, and that making taxes more fair for business actually translates directly into making taxes fairer for the people.”

—State Representative Phil Krinkie (Shoreview), House Tax Committee Chair

“THOUGH WE MAY not agree with the proposal in its entirety, I believe it is provocative and has jump started a broader discussion on Minnesota tax policy. We appreciate the fact that the proposal recognizes the importance of job growth to Minnesota’s economy.”

—Charlie Weaver, Executive Director, Minnesota Business Partnership

“GROWTH & JUSTICE is providing valuable input to the public discussion with regard to tax fairness and incidence.”

—Senator Larry Pogemiller (Mpls), Senate Tax Committee Chair

David AndreasMarcia AvnerTom BarrettPeter BellJim BernsteinJeff BlodgettBruce BomierSteven BosackerJulie BunnArne CarlsonPhil CarruthersBert ColianniJohn DeSantisBill DrakeAnita DuckorJudi DutcherArvonne FraserDon FraserPeter GilletteTerry GipsPeter HeegaardJean HollowayTom HornerLinda IrelandJohn JamesMarcie JefferysDavid JenningsMatt KaneJim KoppelRon KroeseGeorge LatimerJim LenfesteyConnie LewisBecky LoureyMonica ManningAnn MarkusenJim McCorkellBill McKinney

Truck MorrisonPam NearyJohn NelsonRobert OlsonDon OstromFrank ParisiLarry PerlmanMark PetersonAkshay RaoArt RolnickTom RosenAlex RothmanSteve RothschildNina Rothschild UtneDennis RysdahlTerry SaarioKris SandaSharon Sayles-BeltonDavid SchultzJon ScollJoe SelvaggioCatherine ShrevesAl SilverJeff SmedsrudWy SpanoTom StreitzJacob SullivanJohn SullivanAl TimsJohn UllmannCraig WaldronDanie WatsonJohn WellsAnne WeyandtRyan WinklerMedora WoodsRebecca Yanisch

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G&J AdvisersGrowth & Justice would like to thank the following advisers, for their expertise, advice, and counsel. These leaders in their fields have helped shape our organization and our policy work.

2324 University Ave. West, Suite 201 St. Paul, MN 55114 phone 651-917-6037 fax 651-641-7223 www.growthandjustice.org

Page 4: “Rethinking Minnesota Taxes”€¦ · n February 23, the House Tax Committee scheduled 45 minutes for a discussion of Growth & Justice’s tax strat-egy proposal for Minnesota,

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$5000 and above David & Debra Andreas,

The Lownade Foundation Joel & Laurie Kramer Family FoundationAnthony Lourey & Marlana

Benzie-Lourey Family Fund at The Schwab Fund for Charitable Giving

Leland T. Lynch and Terry Saario Fund of The Minneapolis Foundation

Tina & Archie SmithMedora Woods

$1000-$4999John & Sage CowlesRussell & Marguerite Cowles U.S. Senator Mark DaytonCy & Paula DeCosseRon & Joyce DeHarpporteTom Gegax & Mary WescottAnne & Peter Heegaard

Family Fund of the Minneapolis Foundation

Samuel & Sylvia Kaplan Fund of the Minneapolis Foundation

John Lavander & Nancy Owen

Ross & Bridget LevinDavid Lillehaug & Winifred

SmithTom & Barbara McBurneyDick McFarland Family

Fund of The Minneapolis Foundation

Larry & Peggy MeyerMartha R Meyers & Bill

Meyers Roger & Maureen ParkinsonLawrence & Linda Perlman

Family Foundation

Emily Anne TuttleIrv & Marge WeiserBetsey Whitbeck & Jim

Nelson

$500-$999Sara BarrowRondi C. EricksonFredrikson & Byron, P.A.Linda Ireland & Sue GillmanChristopher McHugh &

Cheryl Smetana McHughMichael & Kathleen O’KeefeMatthew Kramer & Katie

Barrett KramerTom & Gwynn Rosen

$100-$499Nancy Abramson & Rabbi

Stacy OffnerChristine AlmeidaFrank & Leslie AltmanDave AndersonBob and Nancy AndersonPaul Anton & Nancy

JohnsonThomas ArnesonMarilyn BamfordAnn Barkelew & James

O’HaganNorah BarrettTom & Marge BarrettPeter BellJudith Belzer & Jerry

WaldmanMichael & Paige Bingham

Fund of the Minneapolis Foundation

Herman BirnbergJeff & Emily BlodgettLynn BollmanBruce BomierChris & Larry Brazelton

John & Susan BreonJudy & Arnie BrierDouglas Britton & Nancy

OddenTyrone BujoldDavid ByfieldJim & Carmen CampbellPhil CarruthersBurt CohenBill & Sharon ClappBert & Susan ColianniLeslie CookJay & Page CowlesLucia & Stod CrainDan & Cassie CramerJohn & Sally CuninghamKen & Linda CutlerTeresa DalyFran DavisJudy DaytonJack & Claire DempseyCaren DewarJoseph DolanBill Drake & Anne

McLaughlin DrakeAnita DuckorKent EklundJohn & Amelia EngbergArlen & Ellen ErdahlJim & Joy EricksonLucille Evans HahnLarry & Jill FieldBarbara Forster & Larry

HendricksonKen FoxworthDon & Arvonne FraserJean FreemanLew FreemanJohn FrenchPeter GrottoddenJoan GroweJocelyn Hale and Glenn

MillerBrian HalloranKathy HansenBette M. HammelGrace HarknessJames Hart & Maureen ReedJodi & Stan HarpsteadShawn HartfeldtJoshua HawkinsPeter HeegaardSteve HeikensDon & Arlene HelgesonJohn & Kathe HetterickJennie HevernBill HillsmanJoel HodroffJohn HolmanJane HowardKimberly Hunter & Scott

WaltersDave Hutcheson & Elizabeth

StoltzSusanne Lilly & Zenas

HutchesonPeter Hutchinson & Karla

EkdahlPaul Iverson

John JamesAndrea JensenBill & Myril JensenMary Ellen JohnsonMelissa JohnsonDavid Johnson & Tracy

Wessel JohnsonEric JollyKathleen JonesMatt Kane & Liz ConwaySylvia & Sam KaplanJanet KeyesKathryn KmittNancy KooElias KramerFred KrohnClay & Mia LambertPeter LancasterEva & Bob LaunerJim & Susan Lenfestey,

Lenfestey Family Foundation

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BeatyWilliam & Deborah MagueNicole Majerle & Tim DevineLeonard MajorMonica ManningJennifer MartinJim McCorkell & Chris

GreenhowBrigid McDonough & Reid

McLeanBill McKinneyMary McLeodSandra MeicherRobert B. MidnessWalter & Joan Mondale of

The Elmore Foundation of The Saint Paul Foundation

Scott MooreKingsley H. Murphey Family

FoundationJenny MyersPamela Neary & Courtney

Storey

Alan Netland & Melanie Shepard

Eric Newman & Janice Gepner

Kathleen O’BrienHoward OrensteinJames A. PayneJeremy Pierotti & Kathryn

KlibanoffTom PerronErik Peterson & Gail OlsonKaren PetersonMark & Mary PetersonLarry & Kathleen

PiumbroeckSally PowerPrakash & Kamala PuramKathleen PytleskiLinda & Peter QuinnGail & Rip RapsonConrad RazidloJosh Resnik & Zoe Adler

ResnikCarleen Rhodes Fund of the Saint Paul FoundationMark Ritchie & Nancy

GaschottJanet RobertArthur RolnickMary RosenthalEric Utne & Nina Rothschild

UtneJorge SaavedraKris Sanda & Dick JohnsonDavid & Miriam SandersSteven SarafoleanDia Satori & Jae BrysonPatricia & Barney SaundersSusan Segal & Myron FransSusan SeltzerFrederick SewellDavid SchultzErika ShatzPhil SherburneAlan Sinaiko & Kathleen

DoarWy Spano & Marcia Keller-

AvnerPhyllis StenersonRich & Jill Stever-Zeitlin

Thank You 2004 DonorsGrowth & Justice would not exist without the support of a long list of individual and foundation donors. We are delighted to share the long list of 2004 donors with you now! THANK YOU for helping us generate and communicate public policy that fosters both economic growth and justice in Minnesota.

2324 University Ave. West, Suite 201 St. Paul, MN 55114 phone 651-917-6037 fax 651-641-7223 www.growthandjustice.org

Growth & Justice meets its match! Welcome new donorsAs part of our 2004 year-end fundraising campaign, we offered new donors an opportunity to join Growth & Justice and help us leverage matching funds from the Sarlyn Fund (of up to $5,000). The cam-paign was successful and we met our $5,000 goal and received the Sarlyn match! Growth & Justice welcomes 62 new first-time donors who together raised $5,606, helping us raise a total of $10,606.

Page 5: “Rethinking Minnesota Taxes”€¦ · n February 23, the House Tax Committee scheduled 45 minutes for a discussion of Growth & Justice’s tax strat-egy proposal for Minnesota,

Frank Stone & Lynn OlsonMarilyn SussmanArlene & Tom SwainBruce & Judy TennebaumMary Staples ThompsonJane TilkaCarol WalshDanie WatsonAlan WeinblattTene WellsLarry WernerAnne WeyandtAlan WhidbyFrank WilkinsonKate & Mark WisserLaura Witerman WittstockJim & Allie WittenbergSara & Doug WolffRebecca & Stephen Yanisch

$20-$99Sharon & Richard AadalenDylan AbramsDennis AlftonAndrea AmundsonMelinda AndersonDon AndersonRoss AndersonMichael AndertTimothy & Beverly AnglumJennifer BakkumJerry BelttJessica BennettDennis BensonStephen & Dixie BergSenator Linda BerglinJill BirnbaumLinda BjorklundRichard BlakeKatherine BlauveltDavid BlyJon BormannCarol BouskaSalley & Mike BosankoAmy BrughJulie Bunn & Marlon

GundersonAllan & Lou BurdickFaith & Mary CableConnie CameronCindy CarlssonSonja ClarkRobert DanaPaulette DesJardinsCharlton DietzBarbara DonaghyDick ErdallJanet FeldmanWilliam & Eleanor FerrilSteve & Nancy GilatsMarjorie GoldbergJanice & Jules GoldsteinSteve GoldsteinLawrence & Ina GravitzConnie GreenAnthony HainaultPeter & Mary Jo HakansonBrian HalversonBryce Hamilton

Cree HannaKathleen HardyMary Hayes MorrisCandy HazenLance HendersonAnnette HenkelAnna Henning & Krista

OlsonPat HergeDan HerzbergElizabeth HinzJanet HivelyJohn HodowanicMarge HoffaHeidi & Chuck HolleyMat & Karla HollinsheadConnie Holmberg & Nathan

FagreNoni Hove ThreinenJim HuhtalaAnn IijimaJerry & Judith IngberAlan & Christine IngramBarbara JeffriesJames & Laura JohnsonJamie JohnsonMegan JohnsonKaren JonesNancy JonesCatherine JordanRepresentative Phyllis KahnLee & Judith KaplanJohn KaulElliot & Nancy KarasovKrysta KavenaughKen KelashLeonard Kelley LindquistTom & Laura KellyMike KennedyShelia M. KiscadenEmily KissaneAnn KjelsbergAlexandra KlarenNancy KleemanJohn KleinTodd KlingelEric KlisStefan KnepPeter KramerParke KuukleNeroli LaceeyScott LambertCynthia LaunerNancy LarsonSusan LasoffKristi LeeJim LeinfelderGary LePagePeggy LeppikMort LevineRandy LevyConnie Lewis & Ken

PetersonTina LieblingDan LipschultzPat LitchyLawrence LiteckyCarl and Mary LofyBill Lofy

Amy LuedtkePaul LuehrKevin LynchMark MahonTim MahoneyMartin MaiersSheldon MainsLinda MaloneyRichard MammenCarole MannheimPamela MarentetteDerek MartinezMark & Judy McCorkellLinda M. McDonnellDonald McFarlandPeter McLaughlinKay MehlPamela MeierLaDonna MeineckeDaniel & Karen MelanderKate Menendez & Dan

RoganStacey MickelsonLynnell Mickelson & John

BellaimeyNancy MiddletonDavid MotesSuzanne MurphyFlorence MyslayekDavid NasbyRebecca NashPatricia NealCharlotte NeighCraig NelsonMichael NobleDiane O’BrienAdam OlianskyRobert OlsonCynthia OrbovichDon & Florence OstromMichael & Connie O’SullivanTodd & Jane OtisAndy OtnessMargaret OwenStephanie OwenAlan Page & Diane Sims

PageSenator Sandra PappasMark Paquette & Tamra FalkTraci ParmenterRuth ParriottMike PerkinsDoug & Eloise PetersonJean Peterson BaschStephen PhillippsKathleen PicardEugene PiccoloBrian M. PittelkoKaren PorthMelinda QuivikEmber Reichgott JungeKen ReineDorothy RenstromAlice RiceSumner RichmanKathleen RidderTwyla RingGeorge RosenquistDebbie Ross

Michael RothmanAlexander RothmanSteve & Marilyn RothschildAndrea & Jim RubensteinChristian RummelhoffPat Ryan GreeneFrank & Bette SackLaVonne SamstadLaura SaylesGary SchiffEric SchubertAudri SchwarzJoe SelvaggioMichael & Vickie SelzerWilliam SentellChristina SheranJoseph SherinCatherine Shreves &

Thomas BirdRebecca & John SiekmeierChuck SlocumJill Smith & Leon GreenSheila SmithCecily SommersJoanne SpencerSeth StattmillerStephanie SteinwedelJackie StevensonJohn Stiles & Javier Morillo-

AliceaMelissa StirnShireen StoneSteven StovitzWilliam StrangBarbara StreetSteven & Nancy StruthersLinda J. SuttonCarol TaylorAmanda TempelClaire Thoen-LevinGayle ThomasJoan & Patrick Toohey in honor of their Conor

TooheyRobert TracyHelene TurnbullDonald & Sandra TurnerKaren TurnquistPamela TwissMichael W. UngerLisa Van DykeBob VanasekBrian Vats-FournierPeter VevanaJim VollagerAndrew Von Bank & Ellen

M. PerraultJoey VossenH Hillard WardAnna WaseschaStuart WebbCharles Weed & Jennifer

PresholtDavid WeissbrodtJohn WellsTim WelshByron WertzStew WiddessJeremy Wieland

Amy WildeJason M. WillettLois C. WolffEllen WolfsonAnna YoungermanShirley & Peter ZimmermanLinda Zimney

These foundations provided funding by matching indi-vidual contributions from employees or executives in 2004:American Express

FoundationBlandin Foundation INGStar Tribune Foundation

2004 pro-bono supportIn addition to the generous gifts from individuals and foundations, we received pro-bono support in 2004 from the following:

Accredited Investors, Inc., Ross Levin (financial services)

Belden Hyatt, Ginny Belden-Charles, (meeting facilita-tion & planning)

Downstairs Graphics, Cathy Crepeau, (graphic design)

Fredrickson & Byron, PA, David Lillehaug & John Nelson (legal services)

Frederick & Rosen LTD, Tom Rosen (accounting services)

Laxdal Consulting, Sue Lax-dal (meeting facilitation)

Jon Thompson (information technology consulting & technical support)

Urban Planet (website devel-opment & hosting)

Companies and individuals that donated their services pro-bono for the 2004 Worst Political Ads in America event:

Audio Visual Film Group, Jim Fuller (produced the show)

Carmichael Lynch Thorburn Design (creative services, event logo, posters and invite)

Dan Joppa, Carmichael Lynch (video services)

LeMeridien Hotel, Jim Graves (hors d’oeuvres for the reception)

52324 University Ave. West, Suite 201 St. Paul, MN 55114 phone 651-917-6037 fax 651-641-7223 www.growthandjustice.org

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Early Care and Learning Act inspired by Growth & Justice Workforce First proposal

When Growth & Justice published its Workforce First report a year ago, we recommended that Minnesota consolidate all child care subsidy programs into a single new early child-hood scholarship available to low-income parents either

going to work or to school. We said the program should be designed to encourage parents to place their children in high-quality care situations, where care is provided by workers earning a living wage. This would be a major step toward ensuring that children are being prepared to succeed by the time they get to kindergarten.

State Representative Paul Thissen thought this recommendation made sense, too. He contacted Growth & Justice to learn more about the issue and then drafted a bill to do just what Growth & Justice described. This

year, Rep. Thissen introduced H.F. 1235, the Early Care and Learning Act.

Rep. Thissen’s bill (H.F. 1235) consolidates the state’s child care assistance programs into a single program with one set of eligibility criteria and open-ended funding that will allow all eligible families to enroll. The bill also provides greater incentives for child care providers to provide high-quality care. And, it establishes a “Qualified Early Care and Learning Provider” designation for providers that meet certain standards that are associated with preparing children for Kindergarten. A tiered reimbursement system is created to reward providers that meet standards with progressively higher reimbursement rates.

This month, the bill was discussed with a bi-partisan group of legislators in the Early Childhood Caucus, and is scheduled to be heard in the Senate Early Childhood Policy & Budget Committee.

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Investing in high quality early childhood learning and care is simple common sense. Our state’s long-term commitment toward building a society that truly supports working people — and is true to the principle of opportunity for all — has been lost in recent years. The Growth & Justice Workforce First report was so effective and persuasive to me because it placed the issue of early childhood care and education in the broader context of ‘How do we move toward a more prosperous and more fair Minnesota over the long haul?’ That is the question all legislators should be asking.

—STATE REPRESENTATIVE PAUL THISSEN (Minneapolis)

2324 University Ave. West, Suite 201 St. Paul, MN 55114 phone 651-917-6037 fax 651-641-7223 www.growthandjustice.org

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2324 University Ave. West, Suite 201 St. Paul, MN 55114 phone 651-917-6037 fax 651-641-7223 www.growthandjustice.org

2004 G&J Foundation SupportThe following esteemed foundations have generously supported Growth & Justice’s work to date:The Elmer & Eleanor Andersen FoundationThe McKnight FoundationThe Oakleaf Foundation The Otto Bremer FoundationPax Christi Catholic CommunityRobins, Kaplan, Miller & Ciresi LLP Foundation, a supporting organization of The Minneapolis Foundation

Why not a tax credit for employers who cover low-income employees’ post-secondary education costs?

Another Workforce First statistic that caught Rep. Thissen’s eye was the fact that Min-nesota has a wider gap than 29 other states between the college graduation rates of its

wealthiest and poorest citizens. Minnesotans in the top 20% of family incomes are seven times more likely to graduate from college than those in the bottom quintile.

And, a Growth & Justice study of the state’s policies and programs revealed many major barriers that discourage low-income Minnesotans from pursuing post-secondary education.

So, Rep. Thissen introduced a bill that provides some incentive for low-income working adults to go back to college, and for employers to encourage them to do so. H.F. 882 (S.F. 1382) provides a tax credit to employers who cover the cost of post-secondary education for em-ployees working more than 30 hours per week and earn-ing less than $12 per hour. The tax credit is up to $2,000 per eligible employee. The bill was introduced in both the House and the Senate and is awaiting a hearing.

Page 8: “Rethinking Minnesota Taxes”€¦ · n February 23, the House Tax Committee scheduled 45 minutes for a discussion of Growth & Justice’s tax strat-egy proposal for Minnesota,

Growth & Justice welcomes two new staffTwo new staff members joined the Growth & Justice team this past February. We’re happy to welcome:

Baris Gumus-Dawes, Director of Research & Policy Analysis: Baris has a B.S. in Economics from Middle East Techni-cal University in Turkey, a Masters in Economics from the University of

Cambridge, and a PhD in Sociology from Yale University. Most recently, she worked as a Researcher at Ameregis, where she man-aged research projects on the geography of racial and economic segregation. She also has worked as a researcher and research associate at the Central Bank of Turkey.

Emily Saunoi-Sandgren, Administrative & Proj-ect Assistant: Emily has worked for the past seven years as an activist on is-sues of violence against women, working both with individual victims as

well as with larger institutions on creating safer and more just opportunities for women to leave abusive relationships. Most recently, she was the Office Manager and Project Co-ordinator at WATCH. Emily has a B.A. in Psychology, French, and Women’s Studies from St. Olaf College.

8

GROWTH & JUSTICE is a think tank for Minnesota economic policy focused on achieving economic growth,

economic justice, and environmental sustainability

simultaneously.

GROWTH & JUSTICE believes that at a time of deep partisan division, Minnesotans can unite

around one goal: a state economy that is strong and growing, while

providing a decent standard of living for all.

NON-PROFIT ORGUS POSTAGE

PAIDMpls., MN

Permit #28507

2324 University Ave. West, Suite 201 St. Paul, MN 55114

2324 University Ave. West, Suite 201 St. Paul, MN 55114 phone 651-917-6037 fax 651-641-7223 www.growthandjustice.org

Growth & Justice: Two years old and going strong

Growth & Justice turned two years old at the end of last year. It’s hard to imagine that in that short time we’ve gone from the germ of an idea in founder Joel Kramer’s head, to a vibrant organization boasting more than 700 individual and foundation donors. We’ve successfully put a stake in the ground for public policy that fosters both economic growth

and economic justice. And, participation in the civic engagement part of our work is strong and growing.

Nearly 400 people from all backgrounds and areas of the state have engaged by par-ticipating in a roundtable or work group discussion, and 2,500 subscribe to our email news updates. We’ve tackled two major policy subjects – wages and taxes. And, as a result, have published two policy reports: Workforce First, asserting that Minnesota can increase the number of self-sufficient families and strengthen the state’s economy with a serious commitment to providing more education and skills for workers; and Rethinking Minnesota Taxes, a strategy aimed at making Minnesota’s tax system fairer for families and better for business growth by swapping higher income taxes on high earners for lower business taxes.

In October of 2004, we moved our office to new quarters on University Ave. in St. Paul, and earlier this year we added a Director of Research and Policy Analysis to our staff to build our research and policy analysis capabilities.

Growth & Justice has been fortunate to be able to grow at a time when the state’s economy is sluggish and many nonprofits are downsizing or going out of business. Our success would not be possible without the ongoing support of so many generous individuals and foundations who choose to make a difference in Minnesota’s quality of life through long-term systemic policy change. We thank you all.

If you would like to learn more about Growth & Justice’s work, or how you can get in-volved, please visit our website www.growthandjustice.org or call us at 651-917-6037.