• The U.S. is on track to exceed 800K COVID deaths this week, a year after the vaccine rollout began. More than 120,000 coronavirus cases are emerging each day, with outbreaks worsening in the Great Lakes region and in the Northeast.

 

• Omicron looms, but how large remains to be seen. Certainly, companies are rethinking return-to-office plans amid omicron cases. Maybe February?

 

• Last week, Minnesota health officials launched a campaign encouraging people to get their COVID-10 booster shots in time for holiday gatherings later this month. The challenge? Appointments are hard to find due to staff shortages.  Prolonged staffing shortages are impacting hospitals and long-term care facilities as well.

• Greater MSP releases its 2021 MSP Regional Indicators Dashboard. Download the Dashboard and share it widely.

• U.S. employers have posted near-record 11M open jobs as of October, nearly matching a record high reached in July. Included is updated data that the number of people quitting their jobs dropped slightly in October as well.

• Surging inflation is forcing people and businesses to adapt. The government’s report Friday that consumer prices jumped 6.8% over the past year – the highest such inflation rate in 39 years – showed that some of the largest cost spikes have been for such necessities as food, energy, housing, autos, and clothing. Especially hard hit are lower-income households with little or no cash cushions. Given that troubling news, the Federal Reserve’s policy-setting committee may be pushed into raising rates sooner than previously expected, according to minutes from the November meeting.

​

• Debt limit: Lawmakers appear on track to meet Treasury Secretary Janet Yellen's Wednesday deadline to raise the federal debt limit. It comes after Biden signed legislation that includes a provision to allow the Senate to raise the borrowing cap with only Democratic support. What we're watching: How much will Democrats raise the debt limit by, and in turn, how long will the reprieve last? It's likely to extend until after next year's midterm elections, but that text has yet to emerge. 

 

• EDA Funding
  • The Congressional Budget Office (CBO) projects that ‘Build Back Better’ programs will add $3T to the deficit if made permanent.
  • 529 applications were received for Phase 1 of EDA’s “Build Back Better Regional Challenge.” Applications came from regions across all 50 states and five territories. Check out the full list to see those from our region! For the latest news on American Rescue Plan grants, sign up for EDA’s newsletter here.
  • Illinois, Indiana, Minnesota and Ohio were among the first batch of states to receive $1 million Statewide Planning Grants. (Read more)
  • The Good Jobs Challenge allocates $500 million toward industry-led workforce training programs to help get Americans – particularly women, people of color, and those in underserved communities – back to work in good-paying jobs. Applications are due January 26, 2022. Know that St Paul/Minneapolis/Ramsey County/Hennepin County are working together on a regional application. The Good Jobs Challenge is part of a suite of EDA programs to equitably allocate $3 billion in American Rescue Plan funding. The following programs have rolling deadlines. Together with our partners, we are applying for funding from the Economic Adjustment Assistance program and the Travel, Tourism, and Outdoor Recreation program.
    • $500M Economic Adjustment Assistance program
    • $100M Indigenous Communities program
    • $240M Travel, Tourism, and Outdoor Recreation program

​

• SBA funds:​
  • Economic Injury Disaster Loan and $10K EIDL Advance cash grant: applications due by December 31, 2021.

State:

• Key takeaways from Tuesday’s budget forecast – the biggest anticipated budget surplus in Minnesota’s history. Considering the billion-dollar loan Minnesota needs to repay the feds for unemployment, this is good news.

 

• MN House starts work on redistricting that courts will likely finish. Democrats released a plan just before Thanksgiving, and Republicans released a plan of their own to counter it last week.

 

• Governor Walz calls paid leave a “top priority” of the 2022 Session – as state is projected to see record surplus.

 
Regional

• Saint Paul City Council adopted the 2022 city budget last week.  13% increase from last year, included is a 6.17% levy increase and a second police academy for 2022, though city leadership still hasn’t decided to accept a $3.75M federal grant towards hiring 30 additional police officers. You can read more about the budget here.

 

• Interested in the long term effects of minimum wage increases? The Minneapolis Fed is tasked with tracking this over the next 7+ years. Their first analysis and report (based on 2018 data) recently was released.

 
Read more updates in our weekly Chamber Advocacy Update.

• Here are Minne Inno’s 2021 Startups to Watch!

​

• Xcel Energy launches EV charging program for multifamily buildings. The pilot program was announced Wednesday. Building owners can pay a “low monthly fee” for charging equipment provided by Xcel Energy, or purchases and install their own equipment. As part of a partnership with HOURCAR, the U.S. Department of Energy, the American Lung Association and East Metro Strong, the pilot will support the installation of 50 electric vehicles at 25 multifamily sites, Xcel said.

 

• Brown Venture Group gets investment from Bank of America. This group exclusively funds Black, Latino, and Native American-owned technology start-ups. "Their financial commitment to our inaugural fund puts us significantly closer to our goal of raising $50 million and demonstrates a shared vision to accelerate racial equality by creating an infusion of capital into underserved BIPOC tech startups in Minnesota and across the country,” said Paul Campbell, co-founder and managing partner of Brown Venture Group.

 

• Data and diversity: the competitive advantage of DEI. A more diverse workforce and, subsequently, a more diverse leadership team, is an asset not just for the wider economy but individual companies themselves.

I was sick this weekend, spent a lot of time in bed and on Xfinity, Netflix, Amazon Prime (the latest musical version of Cinderella, with my favorite Idena Mendez, was fabulous BTW). I had lots of time to think, much of it about you. The burden we all have been carrying has weighed us down; maybe I’m not the only one who needed a weekend in bed.
 
What I dwelled on especially was what “cracked pots” we all are. Each week I talk to so many people, with such a wide variety of talents, skills, responsibilities, burdens. Not one of us is “perfect” in any of it. And, after these past 2 years, we’ve changed. We all carry scars; more now.
 
I used to think my scars flawed me. And I guess in a way they do. But if I can release my own need to be “perfect” in my work, perhaps I can breathe a little easier. In fact, it is our scars that make us uniquely perfect for what is in our lives now.  It is an unexpected truth, perhaps, but one you, too, need to get comfortable with: you are uniquely capable for the work before you. Your passion, your ideas, your care. Scars and all.
 
And the idea that you’re not enough, on your own, for all the work ahead? We need to get comfortable with that as well. Because it’s true.  We can’t “change the world” on our own. That said, needing and asking for help can be hard; the “thank you” harder. Because other people’s generosity can feel like a rebuke. May it never be so. What we need moving forward, as we gather ourselves for the future ahead, is a good old-fashioned barn raising.  I need you and I promise that I’ll be there for you, too. I’m quite good with a hammer.
 
See you in the trenches.
B

What do we know about the omicron variant in Minnesota? More omicron has been detected as hospitals strain under the Delta variant. A second case was found in December 1. It was detected in a Hennepin County resident who had returned from an anime convention in New York City. He started getting symptoms a couple days before he was tested on Nov. 24. That’s the same day the variant was first reported to the World Health Organization by scientists in South Africa.  He tested positive for the omicron variant before the public had even heard of it, let alone figured out how to pronounce it. It was also in Minnesota and California before President Biden restricted travel from southern Africa.  A 3rd federal team will arrive in Minnesota to support hospitals with COVID-19 treatment and patient care. In addition, the Minnesota National Guard is preparing for nursing home deployment.
 
A new generation of COVID-19 treatments – pills – will soon be available, and they matter more than many people realize.
 
Biden announces new COVID travel restrictions, extends mask mandate.
 
Here are links providing booster information:

• Boosters / COVID-19 Updates and Information - State of Minnesota (mn.gov)
• COVID-19 Vaccine for Children and Teens / COVID-19 Updates and Information - State of Minnesota (mn.gov)

​Federal:

• Congressional deadlines: With the government funded until Feb. 19, Congress is turning its attention to two rapidly approaching deadlines: the expiration of the National Defense Authorization Act at the end of the year and the need to raise the federal debt limit. What we're watching: The otherwise unrelated issues are reportedly coming up in the same conversations on Capitol Hill, with Senate leaders discussing tying the two measures together as part of a year-end package. Both House Majority Leader Steny Hoyer (D-Md.) and House Minority Leader Kevin McCarthy (R-Calif.) have poured cold water on the idea, and Hoyer is pushing to pass each item separately this week.

• Build Back Better: Senate Majority Leader Chuck Schumer (D-N.Y.) is said to be planning to bring the Build Back Better Act to the Senate floor as soon as next week, with lawmakers hoping to get the massive climate and social spending bill to Biden's desk by the end of the year. What we're watching: Schumer's got a lot of work ahead of him, with Sen. Joe Manchin (D-W.Va.) reportedly on the precipice of killing the inclusion of a national paid family and medical leave program and Sen. Kyrsten Sinema (D-Ariz.) still withholding her public support for the overall package. And according to Punchbowl News, the Arizonan is telling colleagues she does not think the Build Back Better Act will pass the Senate before Christmas.

 
State:

• On Nov 23, House Republicans sent a letter to Gov. Walz requesting action to avert an impending tax increase on Minnesota businesses set to begin on December 15th to address the debt of more than $1 billion for the state's Unemployment Insurance (UI) Trust Fund. To date, no response from the Governor's office or DEED.

 
Regional

• Divided St. Paul City Council approves $3.5M in federal relief money for police radios.
• St. Paul residents facing property tax hikes condemn proposed levy increase.

 
 
Public Affairs Issue Forums: one final forum to finish out the year:

• Housing Math – December 8, 10-11am. Register here.

 
Read more updates in our weekly Chamber Advocacy Update.

​Holiday Events ahead in St. Paul!
​
Join Catholic Charities for a new holiday tradition this year: their Warming House presented by Luther Automotive on Friday, December 10, and Saturday, December 11, 2021. Located at the North parking lot at the Mall of America, this free, outdoor holiday event brings together the entire Twin Cities community for a fun, festive holiday experience. //cctwincities.org/warming-house/
 
The Rice Larpenteur Alliance is excited to present the Shop Local Guide.
 
Your Chamber’s annual Holiday Open House is back December 9 – with a special twist to thank businesses for their years of partnership. We look forward to seeing you there!

This particular topic is especially important to me. Every week I strive to bring resource to bear, to help all of us think differently about how to be – and build -leaders. I think a lot about my own team, and the trust they place in me every day to lead our organization and develop them. In order to do that the best I can, I look to mentors, I read books, and I listen to others who have gone before me. Here’s a good message to listen to. Simon Sinek talks about two things great leaders need to have: empathy and perspective. Our real job is not about being in charge; it’s about taking care of people in our charge.  A powerful paradigm shift.  ​

Each week I highlight important issues in 7 topical areas. You should know they impact me as well. This week, under “Growing Leaders,” I reference good podcasts for leaders to listen to.  Since I already follow Simon Sinek, it’s my pleasure to share one of my favorites from him today.
 
Recently Sinek interviewed Matthew Barzun, a fascinating man who sees the world differently – unlike anyone else. Early on he saw the power of internet, small donations in politics… he has been Ambassador to Great Britain and Sweden… and author of The Power of Giving Away Power. He is the master of deferring to others.
 
He’s been a witness to this distinct kind of leadership and watched how people give away power. In 2006, for example, then-Senator Obama visited Louisville, KY, for a big rally. In a spare hour afterwards, he sat down with room full of Republicans from the state. As Barzun tells it, “I figured he’d want to catch up on work… instead he listened, asked questions, sought to know. He lit up the room through his lighting up of everyone else – by giving away power.”
 
Barzun goes on to talk about leadership. To his mind, top-down, “do as I say” leadership doesn’t work. Today, the buzz word instead is “bottom up.” Yet, in both cases we still have a highly structured triangle of power. If you really want to change how leadership looks and sounds to drive innovation and trust, Barzun proposes we consider the alternative, another kind of order: the “constellation.”  In this model we each have our own autonomy; we choose to connect to one another to create interesting patterns. Pyramid thinking is more natural, but this alternative can drive real creativity.
 
The example he gave was Wikipedia. A constellation. Its designers, commodities trader from AL, Jimmy Wales, and his team developed the largest human knowledge transfer engine the world has ever seen. They weren’t the gatekeepers or arbiters; continues to be crowd-sourced reference material; the team opened it up to all of us to co-create. And it will last forever. Not perfect, to be sure, but what is?
 
Fascinating, right? The power in you and me encourages each of us to give it away, listen more than we speak, encourage collaboration wherever possible. Very thought-provoking way for me to start the week.
 
See you in the trenches.
B​

Upcoming webinar on Wed, 12/1, 12pm CST, on the most recent U.S. Consumer Spending Report, including trends in consumer demand and shopping patterns across demographics. Register here. 

Officials say a shortage of housing, not jobs, is crimping economic development in Greater Minnesota. Growth requires relocation, relocation requires more housing.  

​Rice Larpenteur Alliance – Ramsey County, St. Paul, Maplewood, and Roseville have been partnering and pooling resources to improve border neighborhood around Rice St and Larpenteur Ave. The partners and community together are transforming the area.   ​

​State:

• Discussions continue about a proposed Special Session. Last Monday, according to the Minnesota Reformer, Senate Majority Leader Jeremy Miller sent a letter to Governor Walz outlining what he wanted agreement on in advance, which includes… “prohibiting state-issued COVID vaccination mandates.” 
• Eviction suspension order voided, but not tenants’ rights.
• MN House DFLers propose congressional redistricting plan.

 
Regional

• St. Paul to consider easing development of narrow lots, mother-in-law apartments.

 
Public Affairs Issue Forums: one final forum to finish out the year:

• Housing Math – December 8, 10:00 - 11:00 AM. Register here.

 
Read more updates in our weekly Chamber Advocacy Update.

​Holiday Events ahead in St. Paul!
 
The Rice Larpenteur Alliance is excited to present the Shop Local Guide.
 
You’re not uncool. Making friends as an adult is just hard.
​
Your Chamber’s annual Holiday Open House is back December 9 – with a special twist to thank businesses for their years of partnership. We look forward to seeing you there!

FDA authorizes Pfizer and Moderna boosters for adults. Qualified people are eligible 6 months after their 2nd shot. My personal experience: as soon as I read this, I jumped on the Walgreens website to get scheduled. Walgreens only offered me one date – couldn’t schedule any date but December 6. Doesn’t work for me. So I jumped on the CVS site; lots of date options at a variety of locations, but none of the potential locations on any of my requested dates had available appointments. Hmm… I guess I will have to keep trying.   
 
Speaking to Minnesota’s worst 7-day case rate in the country as of a week ago, Gov. Tim Walz won’t declare COVID emergency. ‘Just get vaccinated!’  And for those already vaccinated, get a booster shot when your time comes.​

• Debt limit: See above.
• US jobless claims drop for 7th straight week, to a pandemic low of 268K – after topping 900K one week in early January. Minnesota’s unemployment hits pre-pandemic level of 3.5% in October, but we’re still missing workers – over 100K.​
• October survey results from the Minneapolis Fed. Watch this webinar. Outlook: Overall, respondents remain optimistic about the future; 46 percent were somewhat or very optimistic for the coming six months, compared with 34 expressing pessimism. However, there was a notable pullback of 10 percentage points in overall optimism compared with the July survey. Top issues are no surprise: labor availability and supply chain disruptions. Star Tribune offered its summary here.

• Impacts of Minimum Wage in St. Paul: St. Paul restaurants in particular saw large drops in jobs, hours, and total earnings.  
• SBA Announces updated guidance regarding applicant deadlines for COVID Economic Injury Disaster Loan (EIDL) Program. Agency strongly encourages submission of supplemental advance applications by December 10; all applications due by December 31.
• Minnesota manufacturing is looking up despite supply chain concerns. Business is there – challenges are supply chain and attracting qualified workers. IN support of that, manufacturing PMI rose to 60.8% in October, reflecting a 17th consecutive month of growth.  Beware, though: some manufacturers already are talking to me about a potential slow-down in mid-2022, as supply chain issues sort themselves out and OEMs find themselves with an abundance of inventory. Stay tuned on this one.
• Minnesota Chamber releases its 2022 Business Benchmarks Report.
  

• ​Consumers reshuffle spending toward discretionary categories. Morning Consult’s November Consumer Spending Report looks at how supply chain disruptions and the upcoming holiday season are expected to affect consumer spending in the next month. Minnesota retailers are assuring us: “Don’t sweat supply chain challenges, store shelves in good shape.”  That said, with the holidays around the corner, Biden’s inflation problem is about to get worse.   ​
  

• Build Back Better: The House's Friday passage of President Joe Biden's massive climate and social spending plan provided a win for a Democratic caucus that has struggled through months of internal division. Now Senate Democrats get their turn, as Senate Majority Leader Chuck Schumer (D-N.Y.) presses to advance the package before Christmas. What we're watching: The Congressional Budget Office (CBO) has estimated that the spending package would add $367B to the deficit between 2022 and 2031; the bill does make significant improvements in immigration; Manchin is especially opposed to the package's paid family-leave provision due to cost concerns.
• Debt limit: Treasury Secretary Janet Yellen told lawmakers that she has a "high degree of confidence" that her department will be able to finance the federal government through Dec. 15, though the Bipartisan Policy Center, an external forecaster which has consistently predicted when the government will reach its debt limit, believes the Biden administration may be able to stave off default as late as mid-February.  What we're watching: Schumer and Senate Minority Leader Mitch McConnell (R-Ky.) met last week to discuss the issue, suggesting a more conciliatory approach between the two parties than the October standoff. (A number of Democrats simply think Republicans will blink again.) But the question remains: What will Schumer have to give McConnell and Senate Republicans, if anything, in order to cobble together at least 10 Republican votes in favor of lifting the debt ceiling to overcome the legislative filibuster?
• Fed chair: Biden is expected to reveal his nominee for Federal Reserve chair before Thanksgiving. What we're watching: The President is reportedly considering renominating current Chairman Jerome Powell or elevating Fed Governor Lael Brainard, who wouldn't represent much of a change on economic policy from Powell. In fact, she and Powell have worked well together so far during both the Trump and Biden administrations. Brainard would come down more on the side of tighter regulation of financial firms, and perhaps push the Fed harder to make changes in terms of climate action — one of the administration's top priorities. 

​

​State:

• Redistricting: on September 16, the U.S. Census Bureau released data from the 2020 census at data.census.gov. States have not yet finalized redistricting schedules. For Minnesota, the redistricting deadline is Feb 5, 2022. See also: Redistricting in Minnesota after the 2020 census.
• Minnesota tax code changes: Minnesota tax code changes were signed into law on July 1, 2021. Among the changes were those relating to Unemployment Insurance (UI) compensation, Paycheck Protection Program (PPP) loan forgiveness, and other retroactive conformity provisions affecting tax years 2017 through 2020.   As of November 15, 2021:
  • Revenue has processed over 217K impacted returns Of those returns, over 10,900 had PPP loan forgiveness adjustments.
  • Began manually processing the over 540,000 returns with UI compensation and PPP loan forgiveness filed at the individual income tax level the week of September 13. Manual processing of returns is ongoing. 
  • Systematic processing of returns began at the end of October with the goal of processing 50,000 returns each week thereafter.  
  • All other 2020 conformity-related adjustments (e.g., IRA distributions to be repaid over extended time, certain retirement account withdrawals excluded from income, and other miscellaneous provisions) will be completed by the department unless the taxpayer received a letter asking them to complete an amended return. 

 
Regional:

• New Minneapolis Fed property-data tool reveals patterns of investor ownership in the Twin Cities. The rise in investor ownership has been observed nationwide, and it’s growing here. What does this mean? Aside from your personal opinion about investor-owned properties, I anticipate that - with rent control in place - it will continue to grow at a faster pace. Small, local operators/landlord will have to sell.  Investor ownership may reduce single-family homeownership, and can change neighborhood character.
• DOJ awards St. Paul a $4.75M grant for 30 police officers, but Mayor remains noncommittal – until he learns about the obligation it carries. If St. Paul accepts the full grant amount, the city would need to provide a $1.8M match annually for the next 3 years. The federal funding would cover a portion of 3 years of salaries.

 
Public Affairs Issue Forums: one final forum to finish out the year:

• Housing Math – December 8, 10:00 -11:00 AM. Register here.

 
Read more updates in our weekly Chamber Advocacy Update.

Holiday Events ahead in St. Paul!
 
You’re not uncool. Making friends as an adult is just hard.
 
Your Chamber’s annual Holiday Open House is back December 9 – with a special twist to thank businesses for their years of partnership. We look forward to seeing you there!​

​Federal:  

• Democrats plan to vote to send President Joe Biden's $1.9 trillion climate and social spending bill to the Senate this week. What we're watching: The Congressional Budget Office has released rolling estimates for their expectations for the cost of the "Build Back Better" legislation, and more are expected this week. Some moderates have pressed for a full, final score before taking a vote. If House Democrats clear that hurdle, it moves the onus to Senate Democrats to figure out how to cobble together 50 votes for a reconciliation measure, with issues such as taxes, climate and paid leave continuing to hang over those conversations.
• Big infrastructure deal: President Biden is set to sign the bipartisan infrastructure legislation today at a signing ceremony. The Infrastructure Investment and Jobs Act clocks in at over 2,000 pages of text and roughly $550 billion in new funding over 5 years.  What we're watching: The bipartisan signing ceremony will mark the start of Biden's effort to sell a big bipartisan win to the American people. It will be joined by presidential trips to New Hampshire and Michigan next week, and the White House is looking to hire a point person to help execute the massive plan.

​
State:

• Governor Walz could call a special session before Thanksgiving if an agreement can be made for essential workers, drought relief, and an update to COID-19 safety measures.  
• Governor Walz has started his week-long trade mission to the United Kingdom and Finland. The mission is focused on increasing state exports, promoting Minnesota as a premier destination for business investment, developing new business opportunities, and strengthening existing ties. Stay in touch with trade mission updates by following DEED’s Development Blog.

 
Regional:

• Latest article on rent control initiative: chaos ahead.
• Rent control votes panned.
• Study finds Minneapolis and St. Paul minimum wage increases led to loss of restaurant jobs: A study by the Federal Reserve Bank of Minneapolis found that minimum wage increases being rolled out in the Twin Cities appear to have driven a decline in restaurant jobs in both cities.
• Joe Soucheray: The fatal flaw in rent control is already apparent – Twin Cities.
• Schafer: St. Paul rent control vote turns builders, bankers away from capital city - StarTribune.com
• A national spotlight on our region: Rent control is in. Developers are out.

 
Public Affairs Issue Forums: Chamber members are invited to two final forums to finish out the year.

• St. Paul Bicycle Plan Update - this Thursday, November 18, 1:00 - 2:00 PM, RSVP here. 
• Affordable Housing Math - December. The date is not yet set, but if you'd like to be directly notified when it is, RSVP here.

 
Read more updates in our weekly Chamber Advocacy Update

​Looking to do business with a veteran-owned business? Here’s a by-the-numbers look at this year’s largest Twin Cities Veteran-Owned Business List.