Report: Federal stimulus efforts responsible for over 14,000 jobs in Minnesota

November 5, 2009 by Howie · Leave a Comment

As new investments continue to roll into Minnesota through the federal stimulus bill, recently released data shows the American Recovery and Reinvestment Act has fueled new job growth in the state and helped businesses and workers survive the current recession.

“From a state perspective, the federal stimulus bill has been invaluable in helping us get through these difficult times,” said state Sen. Yvonne Prettner Solon. “Stimulus dollars have put thousands of people back to work, expanded access to loans for small businesses, and provided a helping hand to laid-off workers. While our state still faces many challenges, the stimulus bill offered us some much-needed relief.”

To date, $1.6 billion of federal stimulus dollars have been spent in Minnesota. Current estimates indicate Minnesota will eventually receive a total of $4.7 billion for state-administered programs with an additional $4.2 billion in the form of individual tax benefits to Minnesota residents over the next three years. Recent reports show that the money already invested has:

. Created or saved more than 14,000 jobs in the state

. Accelerated transportation and other infrastructure projects throughout the state

. Increased the number of loans going to Minnesota businesses through the U.S. Small Business Administration

. Expanded jobless benefits for unemployed Minnesotans

Stimulus funding also helped lawmakers cope with a historic budget deficit in 2009, Sen. Prettner Solon noted. The availability of federal funds reduced the state’s FY2010-2011 biennial budget deficit from $6.4 billion to $4.6 billion. However, Sen. Prettner Solon cautioned that these federal dollars were a one-time infusion of cash that did nothing to reduce the state’s long-term structural budget deficit.

“This past year we were fortunate to have been handed a life preserver from the federal government,” said Sen. Prettner Solon. “While the stimulus bill helped us avoid some very painful spending cuts, those one-time funds only delayed some very difficult decisions. Over the next two years, the Legislature needs to be focused on responsibly balancing the state’s budget and turning the federal stimulus efforts into long-term, sustainable job growth.”

For more information on how federal stimulus dollars are being utilized in Minnesota, visit http://recovery.mn/.