It’s time Education Minnesota generates some fresh ideas. Education funding will always be on the table, but the answer to increasing student academic progress is not always more money or lower class sizes. Some districts with the highest per-pupil funding have the highest achievement gaps in the state.

Before we hear that “this is just business talking,” look at the broad coalition working to address our education problems. The coalition is specifically supporting legislation this session that links student academic progress to teacher evaluations. Minnesota is one of 11 states that requires districts to use seniority as the deciding factor in layoff decisions – commonly referred to as “last in, first out” (LIFO). We are heartened by the rank-and-file teachers who see the merit in adopting this legislation that require districts to consider performance as well as seniority when making layoff decisions. This bill is all about enabling school districts to recruit and retain the most effective teachers. When will Education Minnesota come on board?

The good news is a recent MPCA report showed a 99-percent success rate in complying with its new mandate to issue environmental permits within 150 days for new construction and expansions. We applaud the agency’s efforts. Streamlining and modernizing the environmental review and permitting processes that involve state agencies remains a priority for businesses of all types and sizes. The Minnesota Chamber initiated legislation in 2011 that passed with bipartisan support and was signed by Governor Dayton that was an important first step in finding efficiencies in the permitting and review process.

Dig deeper into the MPCA statistics, and there’s still clearly room to improve. Of the 1,678 permits accounted for, 1,393 were construction stormwater permits that were dispatched in an average of 4.5 days – standard permits with routine turnaround. However, as of December 31, 175 permit applications had not been issued and were older than 150 days. Of these, eight were categorized as priority permits. In addition, 67 permits took longer than 150 days to issue, meaning a total of 242 applications exceeded the goal of 150 days.

The Minnesota Chamber is advancing legislation this session that will clarify whether a permit application is “complete enough for processing” and will clarify when the clock starts on the 150-day goal.

We look forward to working with the MPCA and other agencies to ensure a timely and predictable system for all permits. Businesses large and small routinely compare all costs and regulatory requirements against other states and nations. Not one of our members has asked to lower a standard. They just want a consistent and efficient process. In today’s economy why are we not doing everything we can to help Minnesota companies expand, and in a timely fashion?

“Innovate” – the redesign of state and local government services – is at the forefront of the Minnesota Chamber’s legislative initiatives this year. Rebecca Paulsen, chair of our Fiscal Policy Committee, details our agenda at http://bit.ly/y05vGR.  Implementing outcome-based budgeting is at the top of those priorities: Agree on total revenue, set priorities, and measure the results of priority programs.

For the first time in several years, lawmakers are not facing a deficit in the checking account. But we’re not out of the woods by any means as the general fund faces a structural balance for the next two years. Let’s seize the opportunity to develop smarter budgeting for better results.

The projected surplus must be put in perspective given the fact that the state’s general fund exceeds $32 billion. And, in recent years, tax collections to run the government have been anything but stable. We have a projected surplus nonetheless. Let’s not repeat the mistake we made the last time we had good news. Let’s take the opportunity to enact priority-based budgeting and restructure the delivery of state and local services – both key priorities of the Minnesota Chamber.

Governor Dayton and legislative leaders have been promoting government reform in their respective 2012 agendas, and they underscored their resolve following the budget forecast. Reform is at the foundation of the Minnesota Chamber’s Jobs Agenda as well. Creativity and innovation have enabled businesses to survive the recession and, in many instances, emerge stronger. Similar principles must guide government if Minnesotans are to adjust to the “New Normal.” The statewide business community stands ready to help forge a foundation for Minnesota to flourish in the economy.

Regulatory reform will be among the Minnesota Chamber’s priorities for the 2012 Legislature. Our initiatives include continued streamlining of the environmental review and permit systems. But we know businesses are frustrated by regulations in a variety of areas.

Consider this example from Red Wing Shoe Co. which was told it no longer could leave doors to its work floor open to provide some ventilation and allow workers to go outside for breaks. The directive came from the U.S. Department of Homeland Security since Red Wing Shoes imports and exports footwear. Consequently, in order to provide an appropriate work environment, the company felt compelled to install a $750,000 air conditioning/dehumidification system. And because Minnesota corporate income taxes are apportioned on capital investment, the company’s state income taxes went up as it invested to make a better workplace for its Minnesota employees! It’s no wonder that Minnesota businesses complain about the regulatory environment.

The Minnesota Chamber’s efforts at the Capitol are most effective when we can provide policy-makers with examples. If you are aggravated by regulations, please forward the specifics to Laura Bordelon, senior vice president for advocacy, at lbordelon@mnchamber.com.

Governor Dayton has been a cheerleader for jobs and economic development, and we welcome the leadership. We also encourage him to take his lead from those who are providing the jobs. If there was one noticeable difference in last week’s two events, private-sector job-creators were greatly outnumbered at the Jobs Summit, and they were the voice at the Manufacturers Summit. The private and public sectors need to work together to increase business confidence in Minnesota. We look forward to building on our successes at the 2011 Legislature to ensure that Minnesota employers can succeed in a global economy.

As committed as they are, Minnesota’s public and private higher ed systems cannot do it alone. Preparing today’s students for the global economy starts in the K-12 system, as underscored in a headline from Rochester: “7 in 10 high-school grads at Rochester Community and Technical College need remedial courses.” The statistic is not specific to Rochester; one-third of students entering college today enroll in remedial courses.

K-12 and higher ed reform must be connected at the hips. The Minnesota Chamber achieved initial victories at the 2011 Legislature toward the goal of ensuring we have an effective teacher in every K-12 classroom. That’s important since, second to parents, teacher quality is the No. 1 predictor of student academic success. We’ll remain just as aggressive in our 2012 agenda. Minnesota employers demand a world-class workforce to compete in today’s global marketplace.

The continuing cycle of budget shortfalls underscores that government must find ways to deliver programs and services at a lower per-unit cost. Forty-two percent of the general business community, as polled in the annual Minnesota Business Barometer Survey, believes redesign of government services can make a significant dent in Minnesota’s budget deficit.

Government reform headlines the Minnesota Chamber’s legislative agenda. We made some significant progress in 2011, and we have a lot more work to do.

A refreshing exception is Beltrami County in northern Minnesota where public officials are “walking the talk.” Kudos specifically go to Tony Murphy, the county administrator whom many credit as the driving force behind the county’s initiatives to examine operations and focus on outcomes. Murphy’s leadership is featured as part of MinnPost’s yearlong series on leadership. Click here for the full story.

Other local government bodies are scrutinizing their operations, too. Most noteworthy, however, is that Beltrami County did not wait for the economic downturn and the resulting budget brunch to take action. Murphy and county leaders were ahead of the curve in realizing that their model of delivering services could not be sustained.

Minnesota government at all levels needs to collectively pursue meaningful budget reform if we are to escape the cycle of budget shortfalls. Restructuring government operations is essential if Minnesota is to sustain the quality government services necessary to be competitive in the global economy at a price that Minnesota businesses and citizens can afford. Beltrami County provides one path to reach that goal.