The commission on Minnesota's future was created by the legislature in 1973 and given the task of preparing a growth and development strategy for the state of Minnesota the 66 commission members include legislators elected officials members of ethnic minorities as well as people from labor agriculture business and the professions all from the different geographic regions of the state the commission chose to study 12 major areas settlement population economy values energy transportation land use agriculture housing health education and environment to findings in each of these areas during the course of this hour. The conclusions were presented to State lawmakers during Horizons to the Alden st. Paul during the early days of the 70th legislative session.We present highlights of former addresses beginning with Robin Comstock vice president for communications at northern states power company. He summarizes the four broad areas of commission inquiry settlement population economy and values. Are is Roman Comstock. My task is to offer some highlights of the major themes which major which subsequent presenters will sketch more detail. Nobody's been struck by the fact that the name assigned the for your effort is a commission on Minnesota's future features in the singular as if there is only one future out there fixed implacable and waiting to descend upon us. Such a view of a fixed and solitary future one without Alternatives tends to breed book Despair and Future Shock for it implies. There is little any of us can really do but to get ready for the inevitable. But it is an accurate representation of the commission to say that we reject such of you. The Chinese ideogram for crisis consists of combinations for symbols for two words one is danger and the other is opportunity. There is danger ahead to be sure. For example, many non renewable natural resources are rapidly depleting most notably oil and natural gas availability of diminish for many has crossed out face income. Historic patterns and rates of economic growth do not appear sustainable in the future. We appear to be moving from an economy of abundance toward one of at least a scarcity and perhaps even of shortage. And if this occurs present expectation held by most of us the standards of living will continue to rise cannot be fulfilled. Now that prophecy being true. People and organizations and therefore government will be forced to re-evaluate perhaps to redefine what is most important and to allocate increasingly limited public and private resources among competing claims. We expect significantly and intensified conflict between the wants of individuals in the needs of society. You will hear these Trends repeated virtually by all of the presenters today. It's not that we could think of nothing else to say, but rather that we found these same trance wherever we look, But these Trends in and of themselves do not constitute the danger. Rather the danger is that we will either fail to understand what is happening or even given such understanding that we will fail to act in a timely inappropriate way. Opportunity in the ideogram then is the converse of that coin that we will understand that we will anticipate and that we will be wise. But while it's far too late to be complacent. It's also far too early to Panic or give up. A pessimist by the way has been defined as someone who feels bad about feeling good for fear. He'll feel worse if things get better. The essence of our message today is is deceptively simple. It has these four elements none of which will be new to you. But which nonetheless needs some redecoration first, is it the Winds of Change are blowing in the state and destination and they will not Abate for some time out. There are some important changes have happened are happening and are yet to happen. In one sense the fact of changes nothing new. We have always been in transition from that which was to that which is yet to be but rather I think all of us and the commissioner been impressed by the new character of the ship how much faster they are occurring on how more fundamental are the impacts. the second element Auburn message Is that these changes are increasingly holistic more and more we are learning. Everything is hooked together property tax relief affect housing which affects Transportation which affects land use which affects energy production and consumption. It becomes more and more difficult and more imperative to understand. These are the relationships one part cannot be altered without affecting all other parts. the third element burn message Is that why there is in the commission no feeling of imminent Armageddon? Stiller is the belief that what we or more and more specifically what you do or don't do is going to make important differences in the shape of our future. That is the real meaning of the Opera phrase. The future is now. In the fourth and last element of our message, we note that I report to you. Is undergirded with an unstated affirmation of hope for and fundamental belief in the worth and value of our basic system despite the crisis of confidence, which seem to be set so many of our existing institutions the commission of firms to you our belief that minnesotans now have workable tools to shape the future. We hope that there will be both the wisdom and the will to use those tools from the at-times overwhelmingly complex structure of the state the commission attempt to analyze for linking threads, which she never present in the fabric. They are as friend mentioned settlement population the economy and values. Let me read these settlement in population. Any effort to deal effectively with the future must begin with an understanding not only of where minnesotans live and work or why they choose to do so inherent the location of the cities and towns and farms are the conditions that govern people's lives and determine the course of their future. Once the location of resources and transportation systems that permitted access to those resources determine where minnesotans lived and worked and most of these patterns were set bring the latter half of the 19th century. But these patterns of the 1800's have undergone change Transportation Communications new technology Economic Development and public policy have all altered Andre altered the reasons why people choose to live in work for they do among the more significant public policies that have influence settlement over the past three decades are FHA home mortgage insurance would sharply expanded housing options for many the Federal Highway Act which Finance construction of Highways permitting indeed encouraging easy horizontal dispersal of people and goods over the landscape. I'm certain provisions of both state and federal income taxes, which subsidized encouraged single-family detached homes. My 1990 Minnesota is expected to add a half a million people to its population mostly As a result of natural increase. But even at present below replacement level reach the population of Minnesota will continue to grow for many years. Where will these additional half million people live in Puck? Will they load how and where will they be employed? Answers to these searching questions emerge in our mind as one of the central problems for Minnesota in the next decade and a half and not surprisingly that brings us to the economy. The development of Minnesota's economy has been very closely related the past to which use of Natural Resources, but that specialization and that dependence is changing the commission feels there are four essential economic Trends which impressed Us in which we want to call to your attention. First Minnesota's economic structure is becoming more Diversified and thereby becoming more similar to the National Economic pattern. It means that the economy of the state will tend to be more directly affected by national and international conditions and that in turn means good news and bad news. The bad news is it unemployment levels may increase. The historic level of unemployment in Minnesota has been consistently below the national unemployment level in indication of a relatively healthy stable and expanding State economy. The good news is that Minnesota's real per capita income is projected to increase by 1992 a level. Someone higher than anticipated national average. This reflects a diminished impact in Minnesota of income from the agricultural sector, which has been historically low and increase impact from other sectors as our economy diversify. The second important economic trend is it poverty in effect has been reduced in Minnesota primarily through economic expansion and inflation and not to fundamental change in the redistribution of income. 1974 example the 1970 census indicates that about 1 in every 10 minnesotans. Lived on incomes below the poverty level is defined by the Social Security Administration. Indications are that the situation is not improving. For example, Lee income tax returns for 73 indicate that the Lost 20% of the income scale received only about 2% of Minnesota's gross income. And that proportion is approximately the same as it was 10 years earlier. Harvard average income for all families during this. He has increased by 75% if we assume as appears to be the case that economic expansion cannot be expected at historical rates, the future difficulties of alleviating poverty poverty will be sure we escalate it just reinforces our earlier conclusion that the governmental task will increasingly turn toward difficult choices of resource allocation among competing claims for these resources in simple terms. The pie will not be as large relatively and the number of those needing wanting and demanding a slice will be larger. The 30 conomic trend has to do with labor force here again. There is bad news and good news. The major population characteristic affecting the labor force in our state is the baby boom, which took place in the fifties and reached its peak in Minnesota in 1959. All across the country these babies of the late 50s and early 60s are not reaching the age when new family formation is occurring and with that comes a need for the formation of new jobs to accommodate this massive entry into the job market. The bad news is that of the approximately 416000 new jobs required for minnesotans in the next 15 years over half of that are approximately 200,000 are required to accommodate the vocational needs of this trip alone. Now these are not abstract numbers, but they are real live people now regarding residing in our State Minnesota is probably a different position in this regard than most other states. All of which will be vigorously competing for a new job formation. We're going to leave jobs come from how can we balance our need to manage and shape economic growth and yet simultaneously expand the job market. The good news is that after 1980 proximately the labor force will grow less rapidly as this bulge reaches labor market age. And as it becomes older, it will result in a more experienced labor force in our state Edition late relatively few or younger person's entering the labor force age will reduce the problems of youth unemployment. The last characteristic of the economy is about something special in the Minnesota scene. the role of Entrepreneurship Jobs, do not just happen. They are created by individuals who employ themselves and others. There aren't present about 55,000 job-creating organizations not including farms in Minnesota in each case. Someone somewhere started it. Infection data management. 7 of the in 1967 of the nation's 500 largest corporations were minnesota-based and all of them were homegrown. By 1974 this number had almost doubled to 1312 of which were originally established in Minnesota by minnesotans and Entrepreneurship in Minnesota has also been equally important in the growth of small and medium-sized firms throughout the state. The conditions in Minnesota which give rise to the development of this entrepreneurial Talent seem to be a unique blend of the physical cultural and political environments resulting from an influence by the patterns of settlement Community Values and open society and an orientation toward problem-solving coupled with a willingness to experiment to change whatever the combination of characteristics it provides a basic resource for dealing with future issues and it should be a major goal of the state to monitor understand preserve and enhance the environment to support system element of human creativity, which is contributed. So remarkably to the quality of life in Minnesota. Well the 4th and you may be happy to hear Last thread to the Minnesota fabric is values. Values are implicit in all aspects of Our Lives. In spite of them fundamental importance of values. We are uncertain about the conditions that influence them throughout most of history and values change. So slowly that the changes are hardly perceived at that time and today and contrast values are being tested severely and frequently and major value shifts occur are within the span of a single lifetime. And these changes in values raised very serious and important questions for today's decision maker Minnesota state was people have believed strongly and values such as individual Enterprise self-determination land ownership and in the institutions, which support those values including family neighborhood community and government for example, Minnesota second among the 50 States and its preference for homeownership, if values and value changes in society are not understood and taking into account governmental decisions intended to influence behavior may have little or no effect. What appears to be public apathy your antagonism May really be a response to the failure of public policy makers to understand and adequately to take account of Community Health values no satisfactory process exist and few forms exist for dealing with these value conflicts individuals are neither a custom tune or prepared to discuss their values open mic. Minnesota's tradition of a relatively open discussion of public issues is by itself. No guarantee that objective and productive discussion of these values will take place for the problems will be solved. And the years they had Minnesota will see increased conflict over values. And we believe that the State Community has much to gain if it can retain and build on its traditions of Citizen awareness involvement. And if the values that underlie individual corporate and public decisions are clearly and openly stated without open discussion of value conflicts resolving current issues will be difficult slow and costly in the chance of anticipating emerging issues will be lessened the commission regards providing the opportunity for that to happen as a central imperative of the governmental task Comstock summarizing the conclusions of the commission on Minnesota in the areas of settlement population economy and values the commission also studied eight other subjects in some detail Jane Ballou consultant to the department of health education and Welfare summarizes the major findings Energy is our first topic energy in Minnesota's future will be costly or and marked by shortages. We on energy dependence stage with petroleum and natural gas accounting for 78% of our total energy. Use Canada's national energy policy will favor will phase out deliveries of crude oil To Us by the early 1980s and indications are that natural gas supplies will be reduced by about 5% per year for the foreseeable future electricity 3 Nuclear Generating units are producing know about 37% of the state's electricity. Solar energy May hold the greatest promise in the distant future with Pete Minnesota's only native fossil-fuel another significant potential energy source, Minnesota's energy agency also refuse warm water from Electric power plant condensers animal waste wind energy nuclear fusion and geothermal sources as other possible Alternatives in all questions of environmental affect health safety security of nuclear materials and high Capital costs must be addressed in the successful search for energy alternatives. Required will be a major and sustain conservation effort beginning immediately by all residences businesses and industries in the state building codes and standards must encourage conservation and the use of energy Alternatives estate energy budget of energy allocations may be required accurate and credible Energy Information must be provided to Minnesota residents for their clear understanding of the problems and alternatives. Energy is closely linked to our next topic Transportation the automobile still dominates the system again with public policy support and subsidy increasing our individual depending on the car a highlighting of the issues find some Transportation decisions are made such as Highway construction or railroad abandonment or bridge closure the great importance placed on the consideration of the effects of these decisions on other modes of transportation on energy on land use and on the environment. Some of the transportation problems may be resolved with non Transportation Solutions like rearrangement of Housing and related services in neighborhoods to make them free of traffic and accessible two jobs and Recreation acceptable forms of public transportation will be a requirement to the Future and home communication systems development should be viewed as an additional alternative to allow people to participate in some of the services now requiring personal Transportation moving on we continue to see the threads of interdependence just as energy concerns relate to Transportation. So Transportation Systems as one form of land use relate to land use as an issue area. Fundamental and difficult concepts for the people of Minnesota in the future. I Promise by questions about responsibility for land use planning competition for land to Urban Transportation industrial recreational Wildlife forestry and agricultural interest has resulted in a rapid escalation of land cost. Urban Land Use will increase between 1970 and 1990 removing additional Farmland from Crop Production expansions of world population and increasing need for food will increase the demand for agricultural products making preservation of Minnesota's most productive Agricultural and an important consideration for the world as well as for the state and National economy. Venues for becoming increasingly critical and difficult issue for the state and for the nation bringing into conflict individual values of self-determination and property ownership with public interests and ecologically concerns. next to agriculture Agriculture is Minnesota's most important single economic activity agriculture. Now faces, however, the prospect of competition for essential resources and increasing costs of these resources. These resources are land water and energy reduce the veil ability of land and increased cost is the result of competition among farmers and the land speculators residential and Industrial uses. The availability of water is not dependable and range is across the state from Scaris to Abundant competition among users are broader is continuing to grow if there is not a comprehensive management approach to water again shortages of petroleum and natural gas as well as increases in their cost impact significantly on a heavily energy-dependent agriculture increases in energy cost will mean increases and production cost. Ford Market opportunities have brought shift in our agriculture from livestock production to crop production as well as introducing an uncertainty that requires greater risk for the farmers exposure to the international market uncertainties contribute to the growth of large-scale operation of farms with can absorb some of the risk climatic factors to a major influences on agriculture in Minnesota, especially with the prospects of drought and the climatologists predictions of worldwide cooling Trends again, the drought conditions bring renewed competition Urban industrial and agricultural interest for water now to housing who will be able to have that single family detached dwelling in the future exactly how short will housing supplies be options are available to Minnesota. It's one of the responsibilities of government and private Enterprise to meet housing needs housing costs are escalating rapidly beyond the means of many prospective homeowners. Housing problems particularly for the poor in the near-poor will be compounded both by the lack of construction to keep up with Demand on the decreasing amount of available older low-cost decent housing the dream of each person owning a single-family dwelling will be unrealized by many perhaps even by most Alternatives me minnesotans will likely alter their housing expectations and hopefully accept older housing and multiple family forms of housing because of both Rising costs and a diminishing available housing stock other Alternatives will be the factory built for the mobile home providing housing through the public sector renewed emphasis on preservation of existing housing are most frequently occupied by older persons least able to afford maintenance encouragement of owner construction and finally to use the existing housing stock more efficiently the stage make it easier for middle-aged and elderly homeowners who wish to do so to leave large older homes. Younger larger families by providing attractive living Alternatives in fiscal incentives continued emphasis on maintenance of existing housing should be encouraged as well as modest experiments aimed at New Concept in low-cost private housing. Help this next is Healthcare. A right Quality Healthcare. What is it? Who defines it does the public sector pay for it the private sector or both. How much are we willing to pay for? How much are we able to pay for in addition to the questions already raised issues and Healthcare include the encouragement of the individual in assuming a healthful lifestyle Minnesota's four leading causes of death heart disease cancer cerebrovascular accident or stroke and accidents can be attributed at least partially to Lifestyle and environment information education and motivation are all vital to individual responsibility for health. Alternative Health delivery techniques utilizing mobile clinics Regional Health Center's and Telecommunications development for healthcare delivery should be explored encouraged and expanded education of young children regarding healthful. Lifestyles should be emphasized which nicely brings us to education operating costs in elementary and secondary education in a triple by the year 2002 as much as 3 billion dollars a year for the state cost increases will come from a rise and teacher salaries cost of Transportation in the cost of maintaining school facilities are policies in post-secondary education have resulted in problems such as an older building a physical plants escalating costs of instruction and counterproductive geographic distribution of facilities added to this is the projection of declining enrollment lasting for 15 years to begin in the early to mid-1980s plus a deterioration of the college graduate job market. Among the issues to be addressed will be the consolidation of Institutions alternative educational Delivery Systems in a re-evaluation of financing policies, including tuition sharing of resources at all levels should be promoted explicit and measurable objectives such a standard the student proficiency should be further developed again, the questions facilities to graphic locations and politicians and economic implications cost Surplus is a professionals what is education and how many years should the public provide it should students pay the full cost of post-secondary Education apart should one part of secondary education, like location of Education between a different plate cost wise how will education be defined in the future. These are major questions facing you now and in the future lastly the environment with all of the sections of this report relating to the environment the interdependence of population changes housing transportation, Economic Development and energy among others is clear the location of these activities on the landscape and the materials. They use are parts of the environment minnesotans have developed a lifestyle that depends greatly on the quantity of resources and the quality of the environment or activities all required land water air and minerals major questions arise about how these resources will be used in the future who will have access to them and who will decide you will be interested to know that in the series of meetings held across the state by the commission on the future environmental issues were rated as a top priority indicating the recognition of our citizens of environmental issues and the willingness of minnesotans to address them. Short-term the most immediate environmental crisis involves the need for energy a longer-term issue will be in land use resulting from competition among land uses power plant sightings mining activity production of basic needs agricultural production Transportation Heating and production of synthetic materials all affecting the environment the cats now facing Minnesota is to manage the environment in ways that considered the long-term interests of the state and recognized our finite resources. This requires better information on the quantity quality and use of air land water and minerals required consistency and public policy public awareness and support moreover. It requires all of us to question the values that influence our behavior and modifier lifestyle if necessary. Jane Ballou member of the commission on Minnesota's future the last two speakers in this program consider the role of state government in addressing the problems Outline by Comstock and Baloo Lawrence Perlman comments on state governments capacity to deal with emerging issues. And then Bruce mcclory suggest possible legislative action here is Lawrence Perlman Executive Vice President of medtronic's incorporated as pointed out regularly this morning and in our report the commission attempting to take a holistic perspective of the state of perspective based on a realization of the extent to which the various elements of our lives are interdependent. Applying this holistic approach to government it becomes clear that the government is merely one part of the total decision making system which exist in any society. In such an overall system of governance the private sector or decisions of individuals corporations labor unions and various special interest groups affect our lives more fundamentally then do governmental action. in this comprehensive governing system The important issues which we see four States government our first what is State government's role in the total decision-making system II what should the relationship between state government and the private sector and third what is the responsibilities of state government for the organization and structure of local government units. An interdependent Society needs to look at major issues comprehensively and to anticipate potential side effects of policy. But public decision-making systems are generally not organized to deal with such interdependence within state government. For example, most of the administrative agencies and legislative committees have specified areas of jurisdiction and develop policy that is designed to resolve issues, which are nearly Define or highly specialized present government processes are not concerned with the unintended and wide-ranging consequences of policy decisions. The inevitable result is that public policies are uncoordinated and often inconsistent overlapping and crossword. Let me say to your case of lack of coordination of public policies in, Minnesota. There is no question that a variety of policies State local and federal covering areas such as taxation housing land use environment Transportation welfare and contribute to the way in which urban development occurs in our state. for example zoning ordinances in building codes have favored the development of new single-family residence on large Lots. Income tax Provisions, which favor homeownership have inadvertently encourage both low-density costly sprawl and urban deterioration by first allowing interest in property tax deductions from income tax for single-family owner-occupied homes, and second printing land as a capital asset with transfers of land text it less than the income tax rate. That's encouraging land speculation on the Urban Fringe third local property tax assessment practices have discouraged the maintenance and Improvement of older properties in urban centers 4th Highway construction policies in financing methods have established an extensive Road Network that provides many conveniences to our citizens, but also encourages longer distance commuting and dependence on the automobile. 5th and Corporation and annexation practices have made local government jurisdictional boundaries inflexible, 6 agricultural tax benefits are made available to Urban and encourage land speculation, finally FHA and veterans. mortgage guarantee programs have subsidized Suburban growth put all these policies together and their combined effect contribute to urban sprawl require higher expenditures for roads Schools transportation Public Safety waste disposal and a range of other services and they are a factor in the creeping deterioration of many of our urban areas causing social and economic costs government while on the one hand in couraging such undesirable effects with these policies has sought to counteract these same effects with another set of public policy. For example compensating policies which redistribute tax revenues from advantaged areas to those affected adversely by the sprawl creating policies through programs that support by state government of schools welfare and Health Services a second compensating policy is urban renewal program housing Rehabilitation are policies to rearrange local government fiscal systems, for example through the physical disparities law in the Twin Cities metropolitan area. Finally, there are policies to encourage Cooperative efforts among local governments such as Regional development commissions. So we have policies would create undesirable and unanticipated conditions and compensating policies which attempt to deal with such conditions. But what do the compensating policies really do do they deal with the causes of problems or only the effects of previous policies clearly in many cases? It is a ladder. The ultimate result is an increase both in the cost of government and in the dissatisfaction with government, I'll report points out many examples of the apparent in capacity of state government to deal with emerging issues in part this incapacity results from significant changes would seem to be taking place in our political system in which issue politics and replace more traditional types of Politics as the main influence on the political behavior of the citizens of the state as well as of the nation. This change however is not a passing thing. It is likely to be the way things are for some time issue politics is the inevitable result of our tradition of using government for social purposes the task facing the legislature and the governor as the state's policymakers is to mediate the multiple and often conflicting demands imposed upon the political system state government agencies, no matter what their responsibilities. Should primarily administer programs and not determine policy priorities do administrative action that responsibility lies with elected officials in bodies. This requires. However, corporate structure to ensure consideration of the broad implications of specific policies, and it means that those who are elected should require that the agencies of state government which administrative policies do the same thing the inability of government to deal with the interdependence and future implications of many issues is in some ways built in the basic structure of state and local governments was designed in an era when the role of government was largely confined to protecting the personal and property rights of the individual. But times have changed indeed the competing claims of an interdependent Society are growing more complex and government has assumed the responsibility for establishing minimum level of Health housing education and food for all citizens many of these Services have come over time to be expected as a matter of public, right? More recently government has become the Arbiter of environmental concerns. Underline the specific suggestions made by the commission is a conviction that government's role should be primarily that a facilitator providing a framework within which orderly social change can take place and in which individuals can develop their own potential. The concept of government as facilitator is based on the fundamental belief that the future of society depends on the values held by citizens and the opportunities available to them the commission's emphasis on the role of government as facilitator means that government should seek to harness individual self-interest and productivity to support government public policy objectives such a rule means that market incentives such as subsidies in Texas for example should be used rather than regulation whenever feasible and it offers the option of turning to the private sector for delivery of those services that can be provided more efficiently or effectively than in the public sector. The role implies the development of a more Cooperative relationship between the public and private sectors particularly investment risks and uncertainties inhibit private develop. Such as in the energy area where the risks and uncertainties are associated with as-yet unfolded public policies. There are however circumstances When government must step out of the role of facilitator and into the role of the provider or guarantor health services are case and point the commission's Report on health care in Minnesota notes rapidly, escalating costs of healthcare at rates. Well above those of inflation and income it also brings out that access to health services has deteriorated for many of the poor the elderly and those in rural areas and inner-city neighborhoods at the same time. The idea of subject of some kind of right to health care for all citizens has been growing in the United States. If such a Right comes to be to be realized government will have to take it increased part in the Healthcare System. But once government steps out of the role of facilitator and becomes at least partially a provider or guarantor what level of services is it appropriate for government to provide for the guarantee? Health can no longer be adequate adequately Define merely as the absence of disease. It is a state of physical and well and mental well-being. Which allows the individual to realize his or her full potential but the preservation of health is to a very large degree a matter of individual responsibility lifestyle decisions. Obviously affect help if individuals fail to assume we've reasonable responsibility for their own well-being. What is the obligation of government? For government to accept passively the healthcare delivery answers of yesterday is to guarantee. That we will deal tomorrow with vexing problems of spiraling costs uneven delivery and user frustration in dealing with the healthcare system government must be Innovative and it must be practical evaluating for example methods of financing health care which provide built-in incentives for individual responsibility. To conclude I have alluded to social and political changes which have resulted in some frustration and disillusionment by citizens with their government at all levels in part the frustration stems from excessive expectations, but in part it stems from an adequate responses by government institutions, the commission was struck by the extent to which state government in a world of increasing interdependence and Rapid change remains at the decision-making and policy levels fragmented without clear responsibility among levels and branches of government without explicit goals and objectives without adequate means of accountability except through the election process without adequate and meaningful citizen involvement and basically not concerned. With the unintended wide-ranging consequences and side effects of policy decisions. That was Lawrence Perlman. The last speaker. This noon is Bruce mcclory the co-chairman of the commission on Minnesota sculpture. Formerly the president of the Federal Reserve Bank of Minneapolis right now heads the Brookings institution in Washington Metro represents the commission's legislative recommendations. we have divided our suggestions into two separate categories first those that we believe deserve consideration here and now and second those We Believe require further study before they are presented as recommendations to you the legislature in the first category for attention now we list the following the establishment of a public policy Institute We put the suggestion at the top of our list because we feel most strongly about it. And because a number of other of our suggestions will benefit from further evaluation by such an Institute from the beginning of the commission's work several members were intrigued with an earlier Citizens League suggestion for a similar body of analysis. Our efforts over the past three years have only reinforced our belief that there is Need For more information about alternative courses of action and that it Institute of this sort could play a useful role. The pressures on government as you know to deal with current problems and crises in a fragmented way freak frequently forecloses, the options and reduces government's ability to cope with change more over the nature of the executive process virtually assures that legislators and citizens will receive a single legislative program or set of recommendations for dealing with public policy issues from whatever Administration holds office rather than a range of alternatives. For these and other reasons the commission believes that a public policy Institute ought to be established and charged with the following kinds of functions. First to identify on a continuing basis longer-range Trends and Society building on what the commission has already started and spelling out the public policy implications of those trends. Second to evaluate the trends in public expenditure and revenue overtime emphasizing the implicit changes in priorities and an income redistribution effects of these Financial flows. Third to suggest alternatives to the policies and programs presented by the administration. 4th to evaluate and make recommendations on the respective roles of the state and local governments in Minnesota in the light of State goals and objectives. Fifth to evaluate the intent unintended and intended impacts of existing and prospective State policies. Six to develop experimental models and recommend procedures for improving public involvement in government decision-making and 7th to review the more promising changes in government structures and organization such as those that follow and present an evaluation of them to the public. The task of a public policy Institute would be both formidable and politically sensitive. The commission believes that such an Institute must be non-political if it's to be effective and that its structure should include a full-time Advisory Group of knowledgeable citizens supported by a highly competent donut large professional staff. Broad public understanding and acceptance of The Institute process would be crucial to its credibility in The credibility of its findings and recommendations. The funding should be considered by the legislature despite the risk that this might diminish the independence of its recommendations supplemental funding or indeed. Even total funding from Private. Selection sources should not be ruled out in the future. Despite the absence of a detailed proposal the commission feel strongly that an Institute along the lines suggested would benefit the legislature and the people of this state and it recommends early establishment of such a public policy Institute with an initial five-year light. Our second recommendation for the hearing now is that the legislature adopt goals and objectives for Minnesota? In the private sector more and more companies, as you know are adopting stated goals and objectives by which to guide and measure their own progress. Theoretically party platforms could serve the same function in the public sector but in practice such platform seldom command lasting attention. The commission therefore urges the legislator legislature to try to develop and adopt explicit though broadly defined goals and objectives for the state. The goal should be thought of as ultimate targets or his principles for guiding change in the future. Our third recommendation is for the reorganization of state government to deal with emerging issues. Equations aware that reorganization of state government is a favorite suggestion of every Group advocating Change. We are also aware that reorganization including integration of the decision-making process by itself does not in any way Usher wise decisions nevertheless the table of organization of State departments and agencies together with their functional description of responsibilities seem to us designed to assure a continued fragmentation in considering emerging issues. Why we do not have an alternative organization chart to propose to you today. We do or that the appropriate legislative committees consider once again, because this is never ending process. What are there aren't ways of restructuring or integrating departments or agencies as in the case of the recently-established Department of Transportation to better deal with a complex and interrelated issues that have become the responsibilities of state government. fourth we recommend the development of long-range Plans by state agencies. To compliment a statement of goals and objectives by the legislature. The various state agencies should be required to develop long-range plans both as input to those objectives and as evidence of compliance with them. The commission was surprised frankly to find it only one or two departments were able to provide it with such statements about his future intentions in their respective areas of jurisdiction. The commission believes that these first four suggestions though, not necessarily easy to implement should be reviewed by the governor and the legislature soon. In contrast the following suggestions fall in our second category where we believe that further study is required prior to Sirius considered consideration by the legislature for implementation they range from what might be called trivial to at the end a major overhaul of state government structures. Among these as many of you may have noticed from growing up growing out of our earlier discussion the need for coordination of information, but we do feel that an infant information Clearinghouse is needed and that such a Clearinghouse could first provide a base of information to help evaluate the effects of existing and prospective public policies. Second provide the basic tools for measuring the achievement of state of jectors and specify agency and Department program proposals. 3rd, identify the changing requirements for data collection as a basis for decision-making and forth impose standards of Yuma uniformity quality and scope for data. Again, we are aware that acquiring recording recording and evaluating data and developing issue relevant information is expensive and information needs vary from one issue to another and overtime. We are also aware of the Public's sensitivity to disclosure of personal information nevertheless. We have identified in our report a number of areas where we found the available information inadequate to our needs and we believe yours. Our second suggestion for further study is in the area of State planning and budgeting procedures. The commission recommends for further study the following changes designed to provide greater understanding of the budget process options program implications and flexibility. First The Selective use of what has been, called zero-based planning and budgeting which would require state agencies and departments to justify their functional role periodically, not just in terms of additional expenditures, but in terms of any Appropriations whatsoever. I would underline in this connection to words the words selective use and periodically since it would obviously be to be disruptive and wasteful to expect fall of government to start from scratch every two years. Second suggestion the presentation of pro-forma budgets for at least two succeeding biennium is beyond the current session in order to lay out for the legislature and the public the assumptions and implications of current Revenue patterns, and the expected costs of current programs. Third in this same thing require a spelling out of the longer-term financial implications of any new expenditure programs or changes in Revenue code. 4th the extension of Contracting by government with suppliers in the private sector to provide designated public service has this concept has been used with varying results in the fields of education for the provision of meals to the institution that confined confined for alcohol treatment centers. And so on ideally it offers the advantages of Greater efficiency and flexibility in the private sector provided there are standards established and enforced within the public sector. A third set of recommendations for consideration further consideration have to do with what's been called Sunset laws. This idea the sunset law idea assumes that inertia and vested interests. Bothan people laws regulations and agencies in existence. Even after the needs of society Society have changed. The remedy proposed is to shift the burden of proof rather than requiring those who Advocate change to carry the argument the burden is placed upon those who want the laws or the institutional structures of bureaucracy to remain unchanged. This is accomplished by establishing automatic expiration dates in the enabling legislation as with the whole idea of zero based budgeting which itself can be thought of as a kind of sunset law. This idea of sunset laws should carry with it. If it's carried to an extreme it would become wasteful and time-consuming and a useless exercise. It would be surprising to us if some areas of the States government process couldn't benefit from the application of this Sunset concept. our fourth suggestion for further study deals with a unicameral legislature among the 50 states only Nebraska has a single house. Yet the idea may be worth exploring. There is always a delicate balance between due deliberation on the one hand and timely change on the other. Many members of the commission have the feeling that the present structures of government not just state government, but including state government tend toward stalemate rather than decision. It could have the additional potential advantage of reduced payrolls for legislatures depending upon the size of a single body though. That may not be seen as an unmitigated Blessing by everyone in this room. finally We recommend for further consideration a clearly radical suggestion. We acknowledge it. Is that a possible parliamentary form of government for the state and no state to my knowledge has experimented in this way. The fart most far-reaching proposal that came before the commission was the suggestion that the State Constitution be revised to substitute a parliamentary form of government for the present structure of divided Powers. The arguments in favor of such a change can be summarized as follows first with a governor and the heads of the various State departments selected from the legislature its self responsibility for failure can no longer be blamed on stalemate between the executive and legislative branches or upon bureaucracies who don't carry out the legislators intentions. A second possible Advantage is that narrow sectional interests are likely to be limited in favor of decisions that are best for the citizens of the state as a whole. On the other side of the legend of the Ledger however must be weighed the following kinds of facts the Parliamentary form of government does not necessarily issue or creative response brayherd responsiveness to the needs of an interdependent Society. So it might help 2nd by emphasizing party discipline individual points of you may be lost in a homogenized kind of hole and third and probably most fundamentally. It is a radical change for which the evidence of its advantages or disadvantages still have to be weighed very careful. Unbalanced though that the commission believes that the idea of a parliamentary form of government is sufficiently intriguing to Warrant further consideration. These considerations weather in the category for immediate attention or for further study represent a distillation of the ideas reviewed by the commission as possible ways of making state government more responsive to the social economic and environmental needs for the future. I think it's fair to say that all of the commission members leave this assignment with a greater appreciation of the difficulty faced by the legislatures in even coping with the present much less the future. We hope that our report will be of use to you and to the people of the state of Minnesota and we sincerely thank you for the opportunity to think in an organized way about our future. Thank you very much. The co-chairman of the commission on Minnesota's future Bruce McLaren earlier in the broadcast. You heard commission members Lawrence Perlman, Jane blue and Robin Comstock. They presented the results of three years of study to a seminar called Horizons to be held in Saint Paul for members of the Minnesota Legislature Horizons to was sponsored by the commission on Minnesota's future and estate planning agency. This is Bob Potter.