♪♪ >> Cathy: ENVIRONMENTALISTS WON A BIG COURT CASE THIS WEEK, ACTUALLY, THAT IS THE WRONG COPY, SO I'M GOING TO TELL YOU AIR LITTLE BIT MORE HERE ABOUT THE COMMISSIONER.

WE HAVE A NEW COMMISSIONER OF D.E.E.D.

IN THE STATE OF MINNESOTA.

REPLACING THE OLD COMMISSIONER WHO WENT TO THE STAR TRIBUNE, SPECIFICALLY COMMISSIONER MATT VARILEK TOOK UP THE MANTLE AT D.E.E.D.

THIS SUMMER AND HE OF COURSE IS BRINGING BACKGROUND OF POLITICS AND SMALL BUSINESS WITH HIM.

GOOD TO HAVE YOU HERE BY THE WAY.

>> GREAT TO BE HERE.

>> Cathy: CLEARLY MINNESOTA HAS AN AGING WORKFORCE AND I'M CURIOUS ABOUT THE GRANTS THAT YOU HAVE.

YOUTH AT WORK GRANTS.

IS THAT TO TRY TO KIND OF INJECT A LITTLE MORE YOUTH INTO OUR WORKFORCE?

>> ABSOLUTELY.

WE ARE REALLY FORTUNATE IN MINNESOTA TO HAVE A VERY STRONG ECONOMY AND THAT'S BECAUSE OF A LOT OF ENTREPRENEURS AND RISK TAKERS AND GREAT WORKERS AND INVESTMENTS AND LEADERSHIP BY FOLKS INCLUDING GOVERNOR WALZ AND LIEUTENANT GOVERNOR FLANAGAN WHO APPOINTED ME.

AND THE YOUTH AT WORK GRANTS ARE VERY IMPORTANT BECAUSE ONE OF THE CENTRAL FEATURES OF THE ECONOMY RIGHT NOW IS THAT UNEMPLOYMENT IS LOW, DEMAND IS HIGH ON THE PART OF BUSINESSES, AND SO THEY WOULD LIKE TO HAVE MORE TALENTED PEOPLE IN MORE JOBS THAN THEY CAN FILL RIGHT NOW.

SO THE YOUTH AT WORK GRANTS, IN FACT WE ANNOUNCED $7 MILLION IN THOSE GRANTS MAYBE ABOUT A MONTH OR SO AGO.

AND I GOT TO GO TO A PLACE CALLED RIGHTTRACK IN ST. PAUL WHICH IS A PARTNERSHIP WITH THE CITY AND SEE SOME OF THAT IN ACTION WHERE THEY ARE WORKING WITH YOUNG PEOPLE WHO MIGHT NOT NECESSARILY KNOW WHAT RANGE OF INTERESTING CAREER OPPORTUNITIES ARE AVAILABLE TO THEM, AND THEY ALSO THEN GET SKILLS WHEN IT COMES TO HOW DO YOU DO A RESUME, HOW DO YOU ENGAGE IN INTERVIEWING, HOW DO YOU DO THE AWKWARD THING THAT WE CALL SCHMOOZING IN BUSINESS ENVIRONMENTS.

>> Eric: NETWORKING.

>> NETWORKING, THAT'S RIGHT.

AND YOU SEE BEFORE YOUR VIEW EYES YOUNG PEOPLE LEARNING THOSE SKILLS AND THEN TELLING YOU THAT'S WHY I LANDED THIS JOB.

WE'RE BRINGING YOUNG PEOPLE WITH TALENT WHO MIGHT NOT HAVE OTHERWISE HAD THOSE OPPORTUNITIES AND THOSE GRANTS CAN OPEN THEM.

>> Eric: I DON'T KNOW IF YOU'RE PAYING ATTENTION TO RATINGS BUT ARE WE THE FIFTH BEST OR FIFTH WORST FOR STATES?

I'VE SEEN BOTH IN THE PAST MONTH OR SO.

>> FIFTH BEST IS CERTAINLY THE ONE CNBC HIGHLIGHTED, WHICH WE'RE EXCITED ABOUT.

WE KNOCKED TEXAS DOWN ONE NOW.

AND I THINK THAT SPEAKS TO THE FACT THAT WE ARE EXPERIENCING THE GOOD LIFE IN MINNESOTA AND IN THE MOST RECENT LEGISLATIVE SESSION AND WITH THE GOVERNOR AND LIEUTENANT GOVERNOR MADE INVESTMENTS THAT ARE GOING TO BE VERY ATTRACTIVE TO WORKERS MAKING THIS A GREAT PLACE TO RAISE KIDS AND THAT'S GOING TO HELP ADDRESS THOSE ISSUES.

>> Eric: HAVE YOU COME UP WITH THE IMPLICATIONS OF THE PAID FAMILY LEAVE PROGRAM?

>> SO ONE OF THE THINGS WE'RE REQUIRED TO DO IS AN ACTUARIAL STUDY SO THAT IS GETTING UNDERWAY RIGHT NOW.

SO THAT WILL GIVE US A MORE PRECISE PICTURE OF THE ECONOMICS.

IT'S IMPORTANT TO REMEMBER THAT IMPLEMENTATION OF PAID FAMILY MEDICAL LEAVE ACTUALLY BEGINS AS FAR AS THE PUBLIC IS CONCERN WITH COLLECTION OF PREMIUMS AND THEN AVAILABILITY OF BENEFITS IN JANUARY OF 2026, BUT AT D.E.E.D.

WE HAVE A LOT OF WORK TO DO IN THE MEANTIME.

IN FACT ONE OF MY COLLEAGUES TAKING A LEAD ROLE IN THIS HAS A COUNTDOWN OF THE NUMBER OF DAYS, I THINK WE'RE AROUND 800.

>> Eric: 2026?

>> JANUARY 2026, YEAH, AND WE'RE MAKING GOOD PROGRESS IN THE EARLY STAGES OF IMPLEMENTATION.

ALSO VERY EXCITED THAT WE HAVE JUST HIRED THE PERSON WHO'S GOING TO BE THE DIRECTOR OF THAT DIVISION, WE'LL HAVE AN ANNOUNCEMENT EARLY NEXT WEEK ABOUT WHO THAT IS.

ONE OF THE THINGS WE SAID THROUGHOUT THE PROCESS SINCE I'VE BEEN ON BOARD AND THEN ALSO DURING THE DEBATE WHICH OF COURSE PRECEDES MY TIME AT D.E.E.D., BUT IS THAT WE WANTED TO LEARN FROM OTHER STATES, BECAUSE WE'RE NOT THE FIRST TO DO THIS.

WE WILL BE I THINK THE 13TH AND WE'RE FORTUNATE IN THAT WAY THAT WE CAN LEARN FROM WHAT MISTAKES MAY HAVE BEEN MADE ELSEWHERE AND SO THAT IS REFLECTED N THE PERSON THAT WE HIRED.

>> Cathy: MINNESOTA OF COURSE IS KNOWN FOR IT'S A HOME TO A LOT OF DIFFERENT MULTINATIONAL CORPORATIONS BUT YOU HAVE A BUSINESS BACKGROUND IN SMALL BUSINESS, SO WHAT DOES D.E.E.D.

WANT TO DO TO GROW SMALL BUSINESSES IN THE STATE OF MINNESOTA?

>> YEAH, AND I WOULD SAY THEY'RE ALL IMPORTANT AND IT'S TRUE THAT I HAVE A BACKGROUND HAVING WORKED AT THE U.S. SMALL BUSINESS ADMINISTRATION IN A COUPLE DIFFERENT ROLES THERE AND THEN THE JOB I HAD BEFORE THIS WAS AT THE INITIATIVE FOUNDATION IN LITTLE FALLS WHICH FOCUSES ON 14 COUNTIES OF CENTRAL MINNESOTA AND AMONG OTHER THINGS DOES LENDING TO SMALL BUSINESSES, TRAINING FOR SMALL BUSINESSES, ET CETERA.

AND PART OF THE CASE THAT I MADE AS A CANDIDATE WAS THAT I'VE ACTUALLY WORKED WITH D.E.E.D.

FAIR BIT BECAUSE SOME OF HOW THAT ORGANIZATION THAT I USED TO BE WITH DOES ITS WORK IS WITH D.E.E.D.

FUNDING AND D.E.E.D.

PARTNERSHIPS.

TO ANSWER YOUR QUESTION ABOUT HOW WE WANT TO WORK TO GROW SMALL BUSINESSES, BUSINESSES NEED TO BE SPINNING A LOT OF PLATES ALL AT ONCE TO SUCCEED, SO THEY NEED TO HAVE ACCESS TO KNOWLEDGE OF HOW TO DO A GOOD BUSINESS PLAN SO THEY CAN THEN GO TO A BANKER OR CREDIT UNION OR COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION AND CONVINCE THEM I'M A GOOD RISK FOR YOU TO TAKE, AND THEN YOU GOT TO MAKE SURE THAT THOSE FINANCIAL INSTITUTIONS HAVE CAPITAL AND THAT THEY ARE WILLING TO TAKE THOSE RISKS.

BESIDES THE BUSINESS PLAN YOU SOMETIMES NEED ONE ON ONE TECHNICAL ASSISTANCE AND SO D.E.E.D.

HAS A NUMBER OF RESOURCES, ONE THAT CAME OUT OF THE LAST LEGISLATIVE SESSION WITH ADDITIONAL RESOURCES IS THE SMALL BUSINESS PARTNERSHIP PROGRAM.

SO THAT PROVIDES GRANTS TO COMMUNITY BASED NON-PROFIT ORGANIZATIONS THAT KNOW THE FOLKS THAT THEY WANT TO WORK WITH AND CAN DELIVER THOSE SERVICES IN AN IMPACTFUL WAY.

LIKE, FOR EXAMPLE, A NEIGHBORHOOD DEVELOPMENT CENTER IS ONE THAT WHEN I WAS AT THE INITIATIVE FOUNDATION WE WORKED WITH.

THEY'VE DONE A LOT OF WORK TO ADDRESS INEQUITIES WHEN IT COMES TO WHO HAS THE RESOURCES TO LAUNCH SMALL BUSINESSES.

I JUST HAD A GREAT UNCH TODAY AT THE MIDTOWN GLOBAL MARKET WHICH IS JUST A SHOWCASE FOR SMALL BUSINESS IN MINNESOTA.

>> Eric: HOPE YOU'LL COME