DEED outlines statewide workforce, broadband and small‑business programs; lawmakers press on grant oversight

ST. PAUL — Department of Employment and Economic Development Commissioner Matt Verlick told the Minnesota House Workforce Committee on Jan. 8 that his agency seeks to “empower the growth of the Minnesota economy for everyone,” framing DEED’s combined economic‑development and workforce responsibilities as a way to connect workers to employer needs.

The presentation outlined DEED’s major program areas — business finance and community development, the Minnesota Trade Office, broadband development, and labor market analysis — and described how the agency pairs workforce services such as CareerForce centers with employer‑focused programs, apprenticeship supports and small‑business assistance. “We increasingly are seeking to work even better with our fellow agencies,” Verlick said, noting the agency’s role coordinating state workforce resources and the Governor’s Workforce Development Board.

Committee members pressed DEED on two recurring themes: how the agency paced distribution of large new grants passed by the Legislature the previous session, and how DEED is preparing for uncertainty in federal funding streams. Deputy commissioners said DEED staged requests for proposals to avoid overwhelming applicants and staff, and performed front‑end risk assessments to ensure nonprofits were eligible and had required fiscal infrastructure before grant agreements were signed. “We will usually, regardless if it’s a direct appropriation or a competitive grant, look at that first to determine that,” Deputy Commissioner Mark Majors said of risk reviews.

DEED officials told the committee most awards were executed and grantees funded, but acknowledged exceptions where proposed uses did not match statutory language or where applicants were ineligible. Majors said the agency used monitoring and targeted technical assistance to address compliance problems and that in a small number of cases funding was delayed while paperwork or eligibility issues were resolved.

Broadband and federal funds drew particular attention. DEED’s Office of Broadband Development is administering a federal broadband award the agency described as roughly $652,000,000 intended to extend service across Greater Minnesota; officials said federal requirements and mapping tasks have required substantial agency work before funds can be deployed. Verlick told members that an interruption in federal funding would be difficult for the state to absorb: “That’s a whopper for us and critical to getting to those households and businesses that don’t yet have service.”

Members representing Minneapolis, Saint Paul and other districts raised questions about outreach and access. Representative Hussain said constituents in his St. Paul district report very low household incomes and limited internet access; he asked how DEED targets services in neighborhoods with limited transportation and broadband. Verlick and Majors pointed to multiple delivery channels — about 55 CareerForce centers statewide, in‑person small‑business development centers, library sites where DEED staff provide services, and community partners such as community development financial institutions — and to youth and small‑business grants aimed at building pathways into work.

DEED officials also described anti‑fraud and compliance efforts across program areas. Verlick said the agency uses different front‑end checks depending on whether funds go to individuals, nonprofits or businesses, and that tailored monitoring and training reduced prohibited‑practice penalties in one recent compliance cohort. “We view our anti‑fraud efforts as robust and tailored for each of the various programs administered across the agency,” he said.

Lawmakers and agency staff discussed near‑term committee priorities, including a planned review of CareerForce centers statewide to understand who is using them and how traffic and services have changed. Chair Dave Baker said he wants the committee to “dive a little bit more into the CareerForce centers around the state,” citing a visit that showed evolving service delivery.

The hearing closed with members thanking DEED for the overview and scheduling follow‑up briefings, including a joint presentation with the Legislative Budget Office on fiscal notes and program funding. DEED officials said they would return with more detailed data about grant execution, program outcomes and broadband implementation timelines.