By Harry Colbert, Jr. –
In what some are calling a historic measure, Gov. Mark Dayton has proposed $100 million in state investment to address the racial disparities in Minnesota.
The announcement came last week when Dayton presented his 2016 budget to the Minnesota Legislature. The investment seeks to address disparities in education, healthcare, business ownership, jobs, housing and other areas. Minnesota is known to have some of the widest disparities in the nation when comparing whites to residents of color.
Dayton said changing demographics make investment in closing the gaps critical.
“While people of color comprise a rapidly growing share of Minnesota’s overall population, less than 10 percent of all Minnesota businesses are minority-owned,” said Dayton in a statement released last week. “As our state’s demographics change, it’s imperative that we improve economic opportunities for emerging entrepreneurs to create good new jobs.”
As a part of the initiative to encourage entrepreneurship in communities of color the governor has proposed a $5 million investment in a revolving loan program for small businesses owned by people of color. However, the program would not be exclusive, offering opportunities to women, veterans and people with disabilities.
According to the governor $67 million of the proposed money would go to departments and programs already in existence with the additional $33 million to be allocated to community based initiatives.
Rep. Rena Moran (DFL-65A), who is the state’s only African-American representative in the House, praised Dayton’s proposal and urged the Republican-led House to pass the governor’s budget.
“Here in the House I have not heard reducing economic disparities as a priority,” said Moran.
Moran said she is particularly encouraged by the fact that a portion of funds in Dayton’s proposal would be used to fund community-based initiatives. The governor proposed $2 million in grants to help small community-based organizations that work with communities of color.
“We have a lot of community organizations doing a great job and this is a great opportunity for community organizations to engage at the state level,” said Moran. She said she is particularly interested in reducing disparities, as Ramsey County has the widest disparities in the state. Moran represents an area in St. Paul of Ramsey County.
In addition to investments in entrepreneurship, Dayton said $5 million would be used to provide down payments for home buyers with an additional $1 for counseling for homebuyers of color. The governor also called for $250,000 to provide guaranteed funds for landlords renting to disenfranchised renters – those with poor credit, mental illness or those experiencing homelessness.
