Sunday, November 25, 2012

Minnesota-Latino Cumbre de Empleos- Un documento creado por la Representante Estatal Sen. Patricia Torres y otros Latino Lideres( version Ingles)

Minnesota Latino Jobs Summit
October 25, 2012
Plaza Verde
1516 E. Lake Street Minneapolis, MN 55407
Prepared by:
Office of Senator Patricia Torres-Ray 100 Rev Dr Martin Luther King Saint Paul, Minnesota 55155

With help from:
Luz María Frías
Felipe Illescas
John Keller
Blanca Martinez Gavina Carla Soto

Huong Nguyen Angela Gonzalez
Special appreciation to The Minneapolis Foundation and The Northwest Area Foundation for their financial support.
During the 2012 Legislative Session, Governor Mark Dayton invited leaders of the Latino community, including Senator Patricia Torres Ray, Representative Carlos Mariani, John Keller and Luz Maria Frias, to organize a job summit to identify practical ideas to increase economic prosperity and create jobs for Latinos in Minnesota.
In  response  to  the  Governor’s  invitation,  Senator  Torres  Ray  convened  a  series  of  meetings  with   The Minneapolis Foundation, The Northwest Area Foundation, The Immigrant Law Center of Minnesota and community experts to develop a practical report with key policy recommendations.
Five key policy priorities were identified as a result:
  1. Expand educational opportunities for young Latinos.
  2. Increase access to capital for small business development and growth.
  3. Review economic status and social conditions of Latinos in rural communities.
  4. Improve Latino business participation in State/Public Contracts.
  5. Expand trade opportunities between Minnesota Latino businesses and Mexico and other
    Latin American countries.
Latinos in Minnesota: Demographic Overview Demographic data and projections
Economic impact of Latinos in Minnesota
From Lake Street in Minneapolis to Worthington, Latinos have contributed tremendously to Minnesota’s  economy  by  starting  businesses  and  working in areas once considered desolate or void of minority-owned businesses. According to the Minnesota Department of Employment and Economic Development, the State’s  labor  force  participation  rate  for  Latino  workers  is  83.8%,   the highest of any ethnic group in the State, and well exceeding the national rate of 68.8%.2 The Selig Center for Economic Growth ranks Minnesota among the ten top states in terms of growth rate in Latino buying power. Latino buying power in Minnesota is currently at $5.1 billion, an unbelievable 909.5% increase since 1990.3
1 2 ew.aspx
The Latino population is growing at a rapid pace locally and nationally. In Minnesota, the Latino population increased over 74% from 143,382 in 2000 to 250,258 in 2010. As of 2010, Latinos accounted for 4.7% of the population in the state.1
By comparison, according to 2010 census figures, the Caucasian population in Minnesota had the slowest growth rate at 11%.
Latino entrepreneurship rates and job creation
In   2007,   the   U.S.   Census   Bureau’s   Survey   of   Business   Owners   indicated there were 5,011 Latino-owned firms in Minnesota4, a 25.8% increase over the 3,984 reported in 2002.
Latino Impact in Rural Minnesota
rural school administrators acknowledge that some public schools in their communities would be shuttered but for the enrollment of Latino students.8
Moreover in Southwest Minnesota alone, Latino workers generated $45 million in state and local taxes in 2000 and added nearly $500 million to the economies of South-central Minnesota, through labor force contributions, consumer spending, and increased demand by employers for regionally supplied goods and services.9
Unemployment data
Latinos are highly regarded for their hard work ethic; however, there are still a considerable number of unemployed Latinos in Minnesota. In 2011, the unemployment rate in the general population in Minnesota was 6.3%, while the unemployment rate among Latinos was 8.6%10 and 5.9%11 among the Caucasian population.
Disparities in Minnesota are not confined to unemployment rates. In 2010, the overall poverty rate in Minnesota was 11.6%. Of that, the poverty rate among the Caucasian population was 8.4%, while the poverty rate among Latinos was 24.4%12. These figures highlight the need to close the unemployment gap as well as the income disparities gap.
4 (Table C)
12 household-income-declines/#.UHMAik2knpg
businesses comprise approximately about 16% of all minority-owned businesses in the state;
employing nearly 6,000 people and having sales of more than $1.6 billion, an increase of 248%
since 2002.5 Latino businesses have become an engine of growth for our local economy.
Since 2001, approximately 75% of all school districts in Minnesota have experienced a decline
in enrollment, with particularly severe decreases in rural districts.6 Contrary to the general trend,
Latino student enrollment has increased by more than 38% overall.7 Acutely aware of per-pupil
Key Policy Priorities
1. Expand Education Opportunities for Young Latinos
Education is a top priority for Latinos. There is consensus among Latinos that economic prosperity is directly tied to academic attainment. However, Latino students are more likely than their peers to drop out of school and become underemployed. In Minnesota, the achievement gap between Latino students and their Caucasian peers has remained constant in the last decade.
Specifically, high school completion and high school graduation rates among Latinos are the second lowest in the state. For the 2011-2012 school year, 7.1% of the enrolled population in Minnesota were Hispanic, totaling 59,625 students. Out of those enrolled in high school, the four year graduation rate is 50.5%. This is the second lowest graduation rate in the state compared to 83.4% for Caucasian students and 49.1% for Black students. Of the remaining 49.5% of Hispanic students, 24.8% are still working on their high school diploma after four years, 13.5% dropped out, and 11.1% had no available information.
The State of Minnesota must prioritize high school graduation and college enrollment among Latino students.
The Governor should adopt a goal to increase the high school graduation rate of Latinos from 50% to 80% by the year 2018.
Proposed Solutions:
1. The State of Minnesota should create a program to offer Latino students the opportunity to work while attending high school. According to a report by the Bill and Melinda Gates Foundation, 32% of young people who dropped out of school said they left school because they had to earn money to support themselves or their families. According to anecdotal information from parents and teachers from key districts in the State of Minnesota, Latino students, particularly male, are leaving high school because of a financial necessity to contribute  to  their  family’s  household  income.  
To respond to this challenge Minnesota should:
A. Create opportunities for high school internships in the public and private sectors e.g., the Minnesota Department of Natural Resources, Minnesota Department of Health, and Minnesota Department of Human Services should create a fund to train and hire high school and college interns. Students participating in these internship programs should make a commitment to obtain their high school diploma and enroll in a post-secondary institution as an eligibility requirement of their internship.
B. The State Demographer has projected a workforce shortage as a result of the Baby Boomer wave of retirements. Current retirement projections in different state agencies should be reviewed and goals should be adopted to replace those individuals with diverse staff. Given the changing demographics of our state, the Governor should adopt serious goals to hire an increased bilingual and diverse workforce.
  1. The Minnesota Office of Higher Education and technical colleges should expand their resident tuition rates to include Deferred Action for Childhood Arrivals (DREAMers) and increase financial aid options for Latino students, regardless of their immigration status.
  2. The Administration should review the criteria for funding youth employment programs. Many programs receive  funding  to  refer  students  to  employment  opportunities  that  don’t   exist. The State needs to invest in creating employment opportunities, not simply investing in referral and training programs. Agencies such as the Minnesota Department of Employment and Economic Development (DEED) need to pursue more funding to open employment opportunities for youth, especially youth living in poverty. Young people want to work and most of them are likely to acquire and advance their working skills on the job.
    Improve access to higher education.
The State of Minnesota needs to increase Latino student participation and enrollment in higher education.   The   Minnesota   Department   of   Education   needs   to   better   monitor   school   districts’   efforts to increase Latino student participation in college credit programs. Colleges and high schools that establish partnerships to enroll large number of Latino students in college credit programs should receive incentives/rewards.
2. Increase Access to Capital for Small Business Development and Growth
The Latino entrepreneurial spirit is well known and appreciated in Minnesota. We need to build on the assets that exist in the Latino community. There are significant numbers of small businesses owned by Latinos across the state. According to the Metropolitan Economic Development Association (MEDA), people of color and immigrants who own businesses tend to hire people of color and immigrants at a rate 7 times higher than majority owned businesses.
The Latino Economic Development Center (LEDC), the Neighborhood Development Center (NDC), the Metropolitan Economic Development Association (MEDA), and other organizations that work with immigrant owned businesses have documented that Latino business owners are more likely to hire individuals who are under skilled and less fluent in English, opening opportunities so that these individuals will be prepared to enter the broader labor market.
Latino-owned businesses in the United States increased by 43.7 % to 2.3 million, more than twice the national rate of 18.0 % between 2002 and 2007. In addition, 89 % of
Latino-owned businesses are operated by single owners 13 with small startup capital. According to a 1992 Characteristics of Business Owners survey, 59 % of Hispanic- owned businesses require less than $5,000 of startup capital.14
Latino owned businesses represent the highest percentage of businesses within the low barrier sectors and low-technology sectors; the lowest percentage of businesses within the medium and high-technology sectors compared to Asian, Black and Caucasian owned businesses.15
Prior wealth is vital for Latinos to start a business because it is almost always the unique source.16 Latinos were significantly more likely to use informal funds (such as from family, friends) compared to Caucasians.17 In addition, it is argued that in the U.S, Latino business owners used substantially fewer formal funds compared to Caucasian.18
In Minnesota, the Urban Initiative Loan Program dispersed a mere 3% of its loans in 2010 to Latino owned businesses.
Compared with the rest of the country, Minnesota has one of the highest percentages of employer based health insurance (78% in 2010)19 and a very low rate of uninsured
14 U.S. Bureau of the Census 1997
15 Ruben O. Martinez et al., 2011; Bates et al., 2011
16 Survey (2004) in Iowa showed that 88% of Latino business owners used their own money for startup capital while only 24% used loans from bank or credit union
17 Rate of Latino businesses utilized informal funds was 22.5% compared to 14.7%, 21.9% and 21.8% of Caucasian, African and Asian owners, respectively. Ruben O. Martinez et al., 2011. See more Granier, 2006; Onochie & Lee, 2008; Raijman & Tienda, 2000
18 Haynes, Onochie, & Lee, 2008; Cavalluzzo & Wolken, 2005; Grnier, 2006; Blanchard, Zhao, & Yinger, 2008.
19 U.S. Census Bureau, Current Population Survey, 2009 to 2012 Annual Social and Economic Supplements
African American Latino
Asian American

Latino 3%
American Indian
White (male/female/couple)

population (about 9% in the period 2007-2011).20 Nevertheless, access to health insurance coverage is highly inequitable across ethnicities. A surprising 19% of the uninsured were Latinos, despite the fact that Latinos make up roughly 4% of the State’s   population.21 Data also showed that only 10.7% of Latinos are covered by their employers, compared to 72.2% of non-Latino Caucasians.22
Improve access to capital and expand Latino business growth by:

Implementing innovative microfinance models through community based lending institutions. These programs should focus on borrowers who have little or no credit and should not require collateral.
Helping Latino businesses expand coverage of employer-sponsored health insurance. Establish a working group to help small businesses understand the federal health credit for small business and other opportunities to expand health coverage to business owners and their employees.
Establishing a cross-agency office to provide one-stop shop services to small businesses. The state should contract with culturally specific community based agencies such as the Latino Economic Development Center to provide increased practical/technical support to businesses in areas such as licensing, training, translation and connection to existing opportunities.
Creating incentives for commercial banks to encourage immigrant lending as well as strictly enforcing the Community Reinvestment Act.
Expanding the Urban Initiative Program loan fund. The Urban Initiative Board should develop a strategy to increase access to loans to Latino owned businesses that proportionately represent the population. Increased culturally responsive lenders and loan requirements that reflect the reality of Latino owned small businesses are additional strategies to consider.
Increasing  DEED’s  focus  on  and  commitment  to  minority business development.
20 U.S. Census Bureau, 2010 American Community Survey
21 MDH & School of Public Health, 2008.
22 The Henry J. Kaiser Family Foundation. quoted in CLAC Fact Sheets Series Health care/ Summer 2009 page 1
3. Economic Growth in Rural Communities
There are many Latinos working on rural farms in Minnesota. Workers from these farms are very skilled in their trade but are often isolated and underpaid. Centro Campesino and other organizations are working very effectively to connect farm workers with one another to provide training and support. Latino farm workers have also expressed a desire to become farm owners and apply their knowledge in areas such as organic farming. The State should develop effective strategies to support Latinos working in rural communities.
4. Improve Participation in State/Public Contracts
This sector presents a challenge and an opportunity. Contracting with minorities is proscribed by law, but the state lacks oversight. The state should increase the monitoring and oversight of these laws as well as outreach to expand opportunities for Latinos. One strategy would be to expand  the  Commissioner  of  Human  Rights’  capacity  to  oversee  and  enforce  this  area.
5. Expand trade opportunities between Minnesota and Mexico as well as other Latin American countries.
The State of Minnesota should recognize the opportunities available to and from Latin America and create a stronger Latin American trade program. This program should work with Latino entrepreneurs to maximize the trade potential between Minnesota, Mexico and other Latin American countries. The program should explore trade missions, seminars, professional exchanges, workshops and cultural exchange.

No comments:

Post a Comment