Mr. Chad McKenna Area Coordinator North East Area Labor Council 2002 London Road, Suite 99 Duluth, MN 55812
Dear Mr. McKenna:
I am including this cover letter with the submission of the North East Labor Council’s “2010 County/Municipal Candidate Questionnaire”. The intent of the letter is to provide you with additional background information on me for the interview session scheduled on Thursday, July 8, 2010 at 6:30 PM at the North East Area Labor Council office.
I have also included a brief summary of my current and past business history.
Challenges for Working Families
We are in a time of unprecedented uncertainty for working families in this country. A good portion of our economy has been broken, bailed out, patched over and is still in turmoil with no end in sight. These are troubling times for millions of American workers and their families, both young and old.
A couple of months ago, commentators were saying it appeared a recovery in the U.S. labor market was at hand. That hope has now all but gone by the wayside. It now appears any improvement will be slow, painful and leave many behind.
By some estimates, as many as 7.9 million jobs may have been permanently lost to the recession. Up to 15 million people may now be looking for new jobs, and the equivalent of 26 million jobs may have gone by the wayside if unemployed, underemployed and those who have stopped looking for work are counted.
A record 1.21 million people who want to work, have given up looking for a job due to the weak labor market. The task is indeed daunting with five workers for every job opening, and more and more job seekers exhausting their unemployment benefits.
Excluding temporary Census workers, the economy appears to be adding only around 100,000 jobs per month. Considering the nation’s working age population grows by about 150,000 people per month, this is not a good sign for any kind of near future rebound. The Federal Reserve, in its latest forecast predicts unemployment will stay at 7% or above through 2012, and in the 5.0-5.3% range over the long term.
Adding to our woes are trade policies that make it more profitable for companies to move jobs offshore to second and third tier countries, where the cost of doing business is substantially less than that in modern advanced societies rightfully shouldering expensive support infrastructures.
Ten or fifteen years ago, it would have been difficult and expensive to produce high quality manufactured goods in these third world locations, but technology and modern communication networks have changed all that. As a result, too many high-paying manufacturing and service jobs are leaving our country.
Is it Possible to “Create” Jobs?
A lot of political jargon is always going around about “creating jobs”. When this topic comes up, the counter question should always be “what kind of jobs?” There are temporary, part-time, transient and permanent/long term jobs. There are jobs with and without benefits, and benefits can be good or not even passable. Too many times, public subsidies of business activity promising to bring new jobs to the table never deliver.
I’m a skeptic when it comes to “job creation” claims, and I believe it is wiser to focus first and early on proactive planning to retain decent jobs with reasonable benefits. This is going to become particularly important in the public sector, where over 231,000 state and local government jobs have been lost since August 2008. The growing personal financial stress on the average taxpayer will only add to this problem, as sources of tax revenue to support public infrastructure become increasingly difficult to tap.
What Should be Done?
A renewed sense of cooperation will be necessary for the members of our local communities to work successfully in concert with each other. This includes government, organized labor, schools, private business and taxpayers.
Given current economic realities, it is not unrealistic to assume some restructuring and sacrifice may be called for. It may well be the only way to keep our infrastructure viable and our citizens gainfully employed. Proactive, cooperative and informed planning helps keep every player in the game a viable contributor as long as possible. Courageous and knowledgeable leadership will be necessary to avoid wasteful projects, well-intended but off-base “blue-sky” sales pitches, and unwarranted subsidization of non-core services.
What is “On the Plate” for Government?
Last month, according to federal data, 22,000 government jobs disappeared. More pain is on the horizon, as some 19 states say they plan to implement layoffs to narrow budget gaps.
The majority of the cuts have been at local levels, which currently total some 14.4 million workers. This is nearly three times the number of workers employed at state levels across the nation. Local workers include the ranks of teachers, law enforcement, firefighters and social service support.
According to the National League of Cities report released last month, nearly 7 in 10 local officials resorted to personnel cuts to balance their budgets over the past year. Many of their budget woes were a result of reductions in state aid. More than half of the states had already instituted hiring freezes or furlough plans.
In 2010, states will be in their third year of projected tax revenue declines. Minnesota is facing this dilemma, and a potential budget shortfall of billions of dollars. This has the potential to impact Lake County government, and the services it is able to supply its citizens.
Why is LakeCounty Vulnerable?
Lake County has a population estimated at around 11,500 persons. Approximately 10% of its residents live at or below the federal poverty level; around 21% are 55 years of age or older; and around 18% are under the age of 18.
The average individual income level in Lake County is approximately $24,000/year, and the average family (two-earner) income is close to $47,900/year. Teachers are some of the highest average paid earners in the county, at around $52,000/year plus benefits, while seasonal resort workers make between $7,000 and $15,000/year.
The average home is valued at about $158,000 for real estate tax purposes.
The county budget for 2011 was around $22.7 million dollars, and the dollar levy was held steady when measured against last year. However, there was a fund transfer of around $600,000 to achieve this end. The county experienced challenges to its income last year from lower land and timber sales, and real estate tax non-payment. More of the same can be expected this year.
Lake County’s demographic profile includes some real estate valuations which are carryovers from the higher value land sales during the real estate boom. The current economic situation should be expected to reduce many of those valuations over time, which could lead to a degree of property tax budget shortfall for 2012.
Lake County is also dependent upon revenues from tourist visits. I am not sure to what degree this source of county and resident income has changed, but anecdotal evidence suggests it is down significantly from last year.
The school system is under challenge to restructure its operations, and is attempting to shave operating costs through various means. A three-part 2010 operating referendum was defeated by a 2-to-1 margin.
In short, Lake County cannot depend solely on its residents and land owners to fully fund its ongoing operations, and must operate with extreme financial care and prudent planning. There appears to be very little room for operating errors in its budgetary future, and not much public tolerance or capacity for tax increases.
What Can Mark Broin Bring to the LakeCounty Board of Commissioners?
Like many, I come from humble roots, and have worked my way through numerous personal and business challenges over time. I spent my early years benefiting from my union membership while working for Red Owl Grocery Stores in Bloomington, MN. During my later business career, I take pride in the fact I always put my employees first, knowing my customers would benefit, and my shareholders would then get a fair return on their investment.
I have personally witnessed excess in the executive offices of corporate America, and have lived through the struggles of middle class families searching for a better life. I have had a significant part of my life savings lost to the greed, corruption and risk-taking actions of our nation’s financial institutions, and can relate to the challenges facing working families who have had their retirement futures and investment portfolios decimated by the same outrageous activity.
I am looking for an opportunity to bring the positive benefits of my years of financial and business experience directly to Lake County’s management picture. Although a permanent resident for only a short time, I have owned my property here since 1994, and feel I have developed a sense of where I can contribute to the continued stewardship and improvement of the good things the county has provided its employees and residents over the years.
Actions the county takes affect me personally, and the viability of the county affects everything from my financial well being to my personal health and safety, and that of my family, my neighbors and my many Lake County friends. To become actively involved in the direction the county decides to take, for the benefit of its residents, is a role I feel I can fill well, and to the benefit of all.
Over the past few years, I have gradually become more personally involved in gaining an understanding of the county’s activities and financial priorities. I have had regular interactions with all the current board commissioners, and a great many of the county’s regular working staff. I have been impressed with the levels of customer service, the quality and value of the services I have received, and the skill levels of those who have shown kindness and patience in assisting me with my needs. I want to see this situation continue, even though appropriately managing these outcomes is destined to become more complex and challenging.
I believe in community service, and in giving back where one can lend assistance. I can bring an experienced perspective on prudent and sound financial management, human resource focus, technology issues and strategic planning to the county’s future. I am decisive, fair, a quick learner, hard worker and a cooperative manager. Those who have worked with me can attest to the fact I am available 24 hours a day, seven days a week.
It is going to take a lot of work, constant personal focus and an ability to understand many intricate issues to keep current county government stable…all the while assuring a healthy march into the future. The coming years will not be kind to those who fail to plan and act appropriately as the economic situation in this state, country and world changes.
The residents and employees of Lake County can be assured of my constant attention and involvement in “doing the right things for all the right reasons” in the best interest of their future.
In conjunction with my campaign for a seat on the Lake County Board of Commissioners, I seek the support and endorsement of working people who are looking for a voice to speak for them, and to champion their causes while building a more fair and just society for us all.
Thank you for the time and consideration the North East Labor Council has granted me. You can be assured that regardless of the outcome of this endorsement process, or the election, I will continue my efforts toward promoting better working and living conditions for all those served by Lake County government.
