DEED Overview Senate Jobs & Economic Growth Finance and Policy Committee - Steve Grove | Commissioner January 13, 2021 - Minnesota State Senate
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DEED Overview
Senate Jobs & Economic Growth Finance and Policy Committee
Steve Grove | Commissioner
January 13, 2021
Our Mission To empower the growth of the Minnesota economy, for everyone.
Our Values
• Focus on the customer • Create inclusion
• Communicate early and often • Encourage new ideas
• Seek solutions • Be gracious
mn.gov/deed
DEED At A Glance
• DEED is the state’s principal economic
development and workforce development
agency.
• We work to attract, retain, and expand
businesses and create jobs for all
Minnesotans.
• We work to connect workers to jobs, prepare
individuals for jobs in high-demand industries,
and help people to live independently.
mn.gov/deed
DEED Divisions
• Workforce Development • Workforce Services
• Economic Development • General Support Services
mn.gov/deed
DEED: Budget
ETP: Employment & Training Programs
VRS: Vocational Rehabilitation Services
BCD: Business and Community Development
UI: Unemployment Insurance
GSS: General Support Services
DDS: Disability Determination Services
SSB: State Services for the Blind
MTO: Minnesota Trade Office
OBD: Office of Broadband Development
Source: Budget Planning & Analysis System (BPAS)
mn.gov/deed
How We Run the Agency
• Objectives and Key Results (OKRs)
• System developed to track progress quarterly on key goals, scored
annually
• Set aspirational goals, measure with quantifiable results
• Every department at the agency sets unique goals around three broad
themes
mn.gov/deed
DEED’s 2021 Objectives and Key Results
• Equity: Radically increase DEED’s economic impact for individuals
and businesses that face systematic barriers to growth.
• Economic Revitalization: Galvanize an economic recovery
that advances Minnesota’s labor market, businesses, and communities
for the next Minnesota economy.
• Culture: Build a positive internal culture that makes DEED
an extraordinary place to work.
mn.gov/deed
Building a More Effective Agency for Minnesotans
• The DEED Innovation Lab
• Focusing on clear performance metrics to manage decision-making
• Re-inventing our Office of Economic Opportunity to build strong
outreach pipelines across Minnesota
• Streamlining our processes to make our work faster,
more transparent, less bureaucratic
mn.gov/deed
What Makes Minnesota’s Economy Unique?
• 1st in nation in 5-year business survival rate
• 1st in Fortune 500 companies per capita among top 30 metro areas
(Twin Cities) and 4th per capita (Minnesota)
• Best state for families and least-stressed state (WalletHub, 2020)
• 4th best state for education (Intelligent, 2019)
• 4th in total labor force participation
• 10th most economically diverse state (Bloomberg, 2019)
mn.gov/deedEconomic Recovery from COVID-19
• Start with Equity. The COVID-19 crisis has hit BIPOC communities the hardest – so our recovery
must start with helping these communities rebuild strongly. Everything we do must be looked at
through an equity lens.
• Safely Reopen Minnesota. For the first half of the year, we will remain focused on thoughtfully
navigating the reopening of our economy as vaccine distribution grows.
• Reskill our Workforce. We’ve lost hundreds of thousands of jobs in sectors that won’t come back
in the same way – we need to train Minnesota’s workforce for the next chapter of the global
economy.
• Create Good Jobs. The jobs we create in Minnesota will define the next chapter of our growth,
we need to make sure these jobs are family-sustaining and follow economic trends that have
long-term potential.
• Strengthen the Social Safety Net. This pandemic has revealed how important it is to have
modern social safety nets in place for when disaster strikes, both for society and for individual
families.
mn.gov/deedWorkforce Development Hamse Warfa | Deputy Commissioner
Employment
and Training
Programs
Office of
Economic CareerForce
Opportunity
Governor’s
Workforce
Dev. Board
Workforce Development OverviewETP Services Provided
Employment and Training Programs: Are designed to reach diverse communities across the state to ensure
that all Minnesotans have access to our services. Many feature partnerships with local workforce development
boards, nonprofit service providers, educational institutions, businesses and other stakeholders.
• Laid-Off Workers/ Dislocated Workers
• Dislocated Worker Program
• Trade Adjustment Assistance Program
• Adult Employment and Training
• Career Pathways programs
• Youth Employment and Training
• Youthbuild
• Minnesota Youth at Work Competitive Grants
• Minnesota Youth Program
mn.gov/deedCareerForce
CareerForce: Oversees delivery of services to career seekers and employers throughout Minnesota
through a network of 50 CareerForce locations in 16 workforce development areas, as well as
virtual services.
• Employment Services Unit
• Job Service Team
• CareerForce Helpdesk
• Employer Services Team
• Veteran Services Unit
• Veteran Career Services
• Disabled Veterans Outreach Program
• Employer Services
CareerForceMN.comGovernor’s Workforce Development Board (GWDB)
• Governor’s Workforce Development
Board: Has statutory responsibility
under the federal Workforce
Innovation and Opportunity Act
(WIOA). Provides leadership on key
workforce strategies for the state.
Represents leaders from business,
education, labor, community-based
organizations and government.
mn.gov/deedOffice of Economic Opportunity (OEO)
• Office of Economic Opportunity:
Leads internal DEED efforts and
external community engagement to
reduce the disparities faced by
populations with barriers to
employment.
mn.gov/deedEconomic Development Kevin McKinnon | Deputy Commissioner
Business &
Community
Development
Economic Analysis
Minnesota Trade
& Labor Market
Office
Information
Office of
Broadband
Development
Economic Development OverviewBCD Services Provided: Business Development
Business Development: Assists businesses and
communities in accessing DEED services and other
resources to support growth, retention and attraction
of workforce and businesses. Also promotes specific
industry sectors where Minnesota has strength/
potential for growth.
Other units help employers build a pipeline of talent
and provide grants for specialized employee training.
• Business Development Managers
• Workforce Strategy Consultants
• Minnesota Job Skills Partnership
mn.gov/deedBCD Services Provided: Business Finance
Business Finance: Administers over 20
financing programs that provide capital to
growing businesses in Minnesota. Some key
programs include:
• Minnesota Job Creation Fund
• Minnesota Investment Fund
• Emerging Entrepreneur Program
• Minnesota Angel Tax Credit
• Launch Minnesota
mn.gov/deedLaunch Minnesota – New!
• Awarded 77 unique startups over $2.4 million in funding
since program began in fall 2019.
• 56% went to innovators in targeted populations.
• Prioritize communities that usually lack access to capital, such as
women, POC, veterans, Greater MN.
• Developed Launch Minnesota Network, a first-of-its-
kind hub-and-spoke model, working with 6 regions, 7
hubs and over 60 program partners.
• Incentivized well over $40M in private investment
through Angel Tax Credits.
• Partnered to provide lean startup training to 380+ people
since April – and are developing MN Expert Exchange.
LaunchMinnesota.orgBCD Services Provided: Small Business
Small Business: Administers programs and services
that provide information and resources to
entrepreneurs and small businesses.
• Small Business Assistance Office
• Small Business Development Centers
• Competitive Grants
mn.gov/deedBCD Services Provided: Community Finance
Community Finance: Administers programs that assist local governments in attracting
and retaining businesses and jobs and to position communities for future economic
growth. Key programs include:
• Infrastructure Financing
• Business Development Public Infrastructure Program (BDPI & IBDPI)
• Transportation Economic Development
Infrastructure Program (TEDI)
• Brownfields and Redevelopment
• Small Cities Development Program
• Special Appropriations
mn.gov/deedMinnesota Trade Office
• Minnesota Trade Office: Works to increase the
number of Minnesota companies exporting
into foreign markets and helps foreign
companies explore the advantages of
expanding or relocating in Minnesota.
• Sponsors and coordinates trade missions
• Contract with partners in Canada, EU,
UK/Ireland, Japan, Association of Southeast
Asian Nations (ASEAN) and China
• Export financing, counseling and assistance
• Foreign direct investment assistance
• Protocol Office for the State
mn.gov/deed/tradeWorkforce Services Blake Chaffee | Deputy Commissioner
Vocational
Rehabilitation
Services
Disability
State Services
Determination
for the Blind
Services
Unemployment
Insurance
Workforce Services OverviewVocational Rehabilitation Services (VRS)
Vocational Rehabilitation Services: Provides
individualized assessments, evaluations,
counseling, training, assistive technologies,
job placement and retention services.
• Vocational Rehabilitation Program
• Extended Employment
• Centers for Independent Living
• Individual Placement and Supports
• Deaf, Deafblind, and Hard of Hearing
mn.gov/deed/vrsState Services for the Blind (SSB)
State Services for the Blind: Assists Minnesotans who are
blind, DeafBlind, losing vision, or who have a disability that
makes it difficult to read print.
• Workforce Development
• Vocational Rehabilitation
• Business Enterprises
• Senior Services
• Communications Center
mn.gov/deed/ssbUnemployment Insurance (UI)
• Pays eligible workers up to 50% of
their average weekly wage (subject
to a state maximum) for up to 26
weeks.
• Collaborates with CareerForce to
ensure workers have the assistance
they need to quickly return to
employment.
• Minnesota UI regularly ranks among
the top 5 states in the country in
federal performance standards.
uimn.orgGeneral Support Services Evan Rowe | Assistant Commissioner, Operations
Office of Diversity
Commissioner’s Communications & Equal
Office Office Opportunity
Office of the Administrative & Human Resources
General Counsel Financial Services
Performance &
Technical
Management
General Support ServicesThank You! Questions?
34
Unemployment Insurance Update
1/12/2021UI Program Statistics
• Including regular UI and new federal programs, the UI program has paid out a
total of $9,680,185,156
• This represents 23,010,049 actual payments
• If laid end to end, they’d stretch 3,087 miles
• 814,726 individuals have received at least one payment since 3-15-2020
• More than 90% of these individuals were paid within a few days of applying
• More than 6.8 million issues have been logged by applicants and employers since
in 2020
• 98% have been resolved, normally we have about 900,000 issues in a year
uimn.orgDEED’s UI Response to COVID
In 2020, the Unemployment Insurance program paid $9,680,185,156.
2020 Unemployment Insurance Payments by Program
Regular Unemployment Insurance $3,585,644,541
Pandemic Unemployment Assistance (PUA) $605,883,176
Pandemic Emergency Unemployment Compensation (PEUC) $554,947,520
Extended Benefits (EB) $85,322,565
Trade Adjustment Assistance $2,419,102
Pandemic Unemployment Compensation (PUC) $4,845,968,252
uimn.orgThe Great Recession with the Pandemic Initial Claims
uimn.orgProgram Changes in Response to COVID
While managing the increase in activity, the UI program
implemented various changes as directed by Gov. Walz
and the MN Legislature:
• Benefits available during the “waiting week”
• Suspension of certain eligibility requirements
• Shared Work changes
New federal programs:
• A temporary increase of unemployment benefit
payouts by $600
• An extended benefit program for people who had
exhausted their regular unemployment benefits
• A new benefit program for those not normally covered
by UI
• Lost Wages Assistance (LWA)
mn.gov/deedUI Customer Service During COVID-19
• Redeployed dozens of staff to answer customer phone calls
• Hired and trained 60+ new staff
• Sent 80%+ of our staff to work from home to ensure continuity of
operations
• Worked thousands of hours of overtime
• Developed new processes to detect and prevent potentially
fraudulent activity
uimn.orgMinnesota Trust Fund, 2005-2020
uimn.orgTrust Fund
• We started with a balance of about $1.5 billion on March 14th
• Considered solvent by USDOL standards
• We had $21 million left on 7-11-2020
• Went negative the next week
• Current balance is negative $980 million
• Previous low point was negative $771 million in 2011
uimn.orgFederal Borrowing
• Normally, the feds charge interest on borrowing
• Currently, interest is waived
• We are NOT alone: California, Colorado, Connecticut, Delaware, Georgia,
Hawaii, Illinois, Indiana, Kentucky, Louisiana, Maryland, Massachusetts, New
Jersey, New Mexico, New York, Ohio, Pennsylvania, Texas, Virginia, Virgin
Islands, West Virginia
uimn.orgUI Federal Stimulus Package
The federal stimulus package, signed into law December 27, extends several
unemployment insurance provisions from the 2020 CARES Act, including:
• 11 more weeks of benefits under the Pandemic Emergency Unemployment
Compensation (PEUC) program
• 11 more weeks of benefits under the Pandemic Unemployment Assistance
(PUA) program
• A $300 per week supplemental payment to anyone receiving unemployment
benefits from any program
uimn.orgUI Federal Stimulus Package – DEED’S Response
DEED transitioned to the new stimulus programs quickly, moving about 240,000
applicant accounts in time for them to request benefits on Jan. 3, 2021. As of the
morning of Jan. 8, these payments totaled about $164 million for the week.
During the first week of the new program, the Unemployment Insurance Program paid:
• ~ $43.8 million in Pandemic Unemployment Assistance (PUA) and Pandemic
Emergency Unemployment Compensation (PEUC)
• ~ $43.2 million in Standard Unemployment Insurance Benefits
• ~ $76.8 million in Pandemic Unemployment Compensation (PUC). PUC is the
additional $300 dollar benefit to all applicants eligible for at least $1 in PUA, PEUC,
and Standard UI Benefits
uimn.orgThank You! Questions?
COVID Response Update
mn.gov/deedResponse to COVID-19
Small Business Emergency Loan program – $30M
• Uses DEED’s lender network to provide 50% forgivable loans
to businesses impacted by specific Executive Orders.
Small Business Loan Guarantee program – $10M
• Uses a statewide lender network to provide an 80% loan
guarantee to businesses with the equivalent of 250
employees, maximum of $200,000.
Small Business Relief Grants – $72.5 million
• The legislature appropriated a package of $60 million from
the state’s CARES Act funds and $2.5 million from the SBLG
to provide grant funds to small businesses in the Second
Special Session. An additional $10 million was allocated from
the LCRC in November.COVID-19 Relief Package
COVID Relief Package – $216 million package
• DOR Business Relief Payments – $88 million to businesses that have seen at least a
30 percent decline and that provide on-site food and beverages; including bars,
restaurants, breweries and wineries; bowling alleys; and fitness or sports recreation
centers. Payments would be $10,000-$45,000 based on the number of employees.
• DEED Movie Theater and Convention Center Relief Grants – $14 million for movie
theaters and multipurpose convention centers with a capacity of at least 1,500
people. A per screen formula would be used to help movie theaters and several
factors would be considered for convention center allocations. Convention center
awards would need to be used for direct operations and facility upkeep.
• County Relief Grants – $114.8 million for counties to make grants to eligible
struggling businesses and nonprofits. Each county would receive the greater of
$200,000 or a per capita amount based on its 2019 population.
mn.gov/deedDOR - Direct Payments
• Aid for Restaurants, Bars, Gyms, and Bowling Centers
• We notified eligible businesses though their e-Services
account and by mail on December 31, 2020.
• Businesses did not need to take action in order to receive a
payment.
49DOR - Direct Payments
• In the initial distribution, we sent 3,893 unique checks to
businesses totaling $67,320,000.
• Businesses should expect to receive their check in the mail
within 5 – 7 business days, depending on the speed of the
U.S. Postal Service.
• No electronic or direct deposit payments were made.
50DOR - Direct Payment Inquiry Process
• Businesses that did not receive a payment but think they
meet the requirements.
• This process will open on or around Tuesday, January 19, and
will close on or around Friday, February 5.
• Revenue will investigate all inquiry submissions to determine
if a business is eligible for a payment.
51DEED - COVID Relief Grants
Minnesota Movie Theater Relief Grants
• The Minnesota Department of Employment and
Economic Development (DEED) will oversee the
Movie Theater Relief Grant Program. This
temporary program was established to provide
economic relief for movie theaters adversely
affected by the COVID-19 pandemic.
• This program will make grants up to $150,000
to eligible movie theaters (drive-in movie
theaters are ineligible) located in Minnesota.
mn.gov/deedDEED - COVID Relief Grants
Convention Center Relief Grants
• The Minnesota Department of Employment
and Economic Development (DEED) will
oversee the Convention Center Relief Grant
(CCRG) Program. This temporary program
was established to provide economic relief
for convention centers adversely affected by
the COVID-19 pandemic.
• This program will make grants up to
$500,000 to eligible convention centers
located in Minnesota.
mn.gov/deedCounty Relief Grants
County Relief Grants - $114.8 million
Counties shall use the funds to make grants to individual businesses and
nonprofits that, to the extent it is feasible for the county to determine:
• located in the applicable county in the state of Minnesota or on adjacent tribal
land
• have no current tax liens on record with the secretary of state as of the time of
application for a grant under this section; and
• were impacted by an executive order related to the COVID-19 pandemic
mn.gov/deedEconomic Recovery from COVID-19
• Start with Equity. The COVID-19 crisis has hit BIPOC communities the hardest – so our recovery
must start with helping these communities rebuild strongly. Everything we do must be looked at
through an equity lens.
• Safely Reopen Minnesota. For the first half of the year, we will remain focused on thoughtfully
navigating the reopening of our economy as vaccine distribution grows.
• Reskill our Workforce. We’ve lost hundreds of thousands of jobs in sectors that won’t come back
in the same way – we need to train Minnesota’s workforce for the next chapter of the global
economy.
• Create Good Jobs. The jobs we create in Minnesota will define the next chapter of our growth,
we need to make sure these jobs are family-sustaining and follow economic trends that have
long-term potential.
• Strengthen the Social Safety Net. This pandemic has revealed how important it is to have
modern social safety nets in place for when disaster strikes, both for society and for individual
families.
mn.gov/deedThank You! Questions?
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