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Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

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Photo: Aaron Lavinsky/Star Tribune via Getty Images

Minneapolis generated nearly $2 billion in tax revenue for the state in 2017 — 3.5 times more than what the city got back in state aid, per a new analysis commissioned by the Minneapolis Regional Chamber of Commerce.

Why it matters: The report, released to Axios yesterday, showcases the outsized role the state's largest city plays in Minnesota's overall economy — and the impact pandemic recovery here will have on the state as a whole.

Driving the news: A fight over whether Minneapolis should get more state aid for disaster relief and trial security has consumed the state Capitol in recent weeks.

  • Lawmakers are debating proposals to send $150 million to metro businesses damaged by last year's civil unrest and create a $35 million fund that could be used to reimburse law enforcement agencies for costs related to the Derek Chauvin trial.
  • Many Republicans oppose the proposals as a "bail out" for Minneapolis at Greater Minnesota taxpayers' expense, citing concerns about local proposals to cut MPD funding and overhaul the department.

The other side: Supporters of the measures say the "balance of payments" breakdown underscores their argument for more state investment in rebuilding the city's businesses and preventing another round of unrest.

  • "This report makes a good case for why protecting Minneapolis as an asset is important to the state," Chamber president and CEO Jonathan Weinhagen told Torey.
  • "A strong Minneapolis is really important for Minnesota...We have an interconnected economy."

By the numbers: More than 90% of the money Minneapolis sent to the state in 2017 came from income and sales/use taxes, the analysis of state revenue and aid by the firm MacCallum Ross found.

  • Most of the $536 million the city got from the state that year was for schools ($400 million) and Local Government Aid ($78 million).
  • While the metro receives more total cash, the 80 counties that make up Greater Minnesota consistently get more state funding than they give in tax revenue, per the analysis.

It's not just Minneapolis proper making an outsized contribution: The seven-county metro paid $3.46 billion more than it received in 2017.

Data: Minneapolis House of Representatives Research Department Major State Aids, Credits and Taxes Data. Chart: MacCallum Ross/Minneapolis Regional Chamber

What's next: Negotiations and hearings on both the emergency assistance fund, known as the SAFE Act, and proposals for rebuilding aid are continuing.

Of note: It's not just Republicans blocking the SAFE Act. A handful of House Democrats representing the metro have concerns about a lack of police accountability measures.

  • Weinhagen said the chamber has been "working actively" with the Minneapolis delegation to find a "path forward."

Go deeper

States pass coronavirus aid without Congress

A health care worker administering a coronavirus vaccine at a mass vaccination site in Oakland, Calif., on Feb. 16. Photo: Carlos Avila Gonzalez/The San Francisco Chronicle via Getty Images

Multiple states have passed or are considering economic relief bills as the Biden administration’s $1.9 trillion coronavirus stimulus plan makes its way through Congress, AP reports.

Why it matters: The state aid packages aim to help jobless residents and struggling small businesses devastated by the pandemic. But the individual action also bolsters arguments against another major cash infusion from the federal government.

Feb 23, 2021 - Health

California to provide $600 stimulus payments to 5.7 million people

Gov. Gavin Newsom during a Feb. 12 news conference in San Francisco. Photo: Gabrielle Lurie/Pool/The San Francisco Chronicle via Getty Images

California Gov. Gavin Newsom (D) has pledged to sign into law Tuesday a measure to provide some 5.7 million people with at least $600 in one-off payments as part of a state COVID-19 relief package.

Driving the news: State lawmakers on Monday overwhelmingly voted for the bill, designed to help people on lower incomes through the pandemic.

Intel CEO calls for "moonshot" to boost U.S. role in chipmaking

Intel CEO Pat Gelsinger. Photo: Horacio Villalobos - Corbis/Getty Images

Intel CEO Pat Gelsinger called Monday for the U.S. to spend billions of dollars over the next few years as part of a "moonshot" designed to regain lost ground in semiconductor manufacturing. The goal, he said, is to see the U.S. again account for a third of global output, up from about 12% today.

Why it matters: Investments made now will take several years to bear fruit, so they won't do much to ease the current semiconductor shortage, but they're vital to America's long-term economic future and national security, Gelsinger told Axios on Monday.

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