EDA approves CTE Center Grant
Concerns about future project funding arise
NEW ULM — The New Ulm Economic Development Authority (EDA) approved $40,000 in EDA funds for the Career and Technical Education (CTE) Center.
The center is looking to raise around $92,000 total for new and better equipment, including a CNC Plasma Cutter and CNC Router. The $40,000 request looked to cover a $20,000 Laser Engraver, three Multi-matic welders for $14,000, 12 sewing machines for $2,400, six Milwaukee M18 cordless two-tool combo kits and a Lenco spot welder for $4,000 total.
Economic Development Director Heather Bregel said the ask would dip into already shortened funds.
“We currently have about $280,000 available for additional funding requests,” she said. “Our reserves are really low at this time following the Westridge police project. That really depleted the EDA funds.”
Finance Director Nicole Jorgensen said in addition to funds being short, they also won’t be replenished for a while.
“As they’re spent, they’re gone,” she said. “There’s not a lot to replace those funds as you use them. If you use 40,000 now, that’s 40,000 you may not be able to use later because it will be quite a few years before that will be replenished.”
If the grant was approved, this would bring the project funding down to $240,000.
EDA president Michelle Markgraf said she was in favor of the CTE Center funding but was concerned about its long-term sustainability.
“The sustainability of it seems to be ‘We’re going to be coming back and asking as we need more funds for more things,” she said. “There isn’t a long-term sustainability plan. At the end of the day, it’s the city’s money. It’s taxpayer money.”
CTE Committee member Tim Knaak said though ISD 88 looks to raise funds, there’s typically not enough in the budget to cover larger expenses. He said it is often the case that EDAs help with CTE Centers initially before they receive more outer support.
“Long term, in surrounding areas through NUBRIC, we think there’s a lot of opportunity to bring in large companies,” Knaak said. “Maybe even as far as reaching as Minneapolis. Our goal would be financial stability, to have a million dollars in our hopper. Then we’re in a really good position down there to continue to educate.”
Knaak said they are also looking at adding adult education programs as a way to bring some self-sustainability to the CTE Center. He said it’s been a goal for a while, but currently it’s a work in progress.
Board member Lindsay Henn threw her support behind the grant. She said the ask fits in line with the current EDA initiatives. And though the $40,000 was seen as a big ask, she said the prices for the referenced pieces of equipment like a laser engraver won’t be getting any less so moving forward.
“I feel investment in a larger piece of equipment which people are going to be able to get real-world education on is more valuable than some of the less expensive equipment that is still in need,” Henn said. “It’s bringing something newer, more innovative.”
She also said the focus should be less on the CTE Center being self-sustaining due to its focus as an education-based program.
“In terms of being self-sustaining, I would imagine the area of education is always going to need the investment of their community,” Henn said. “A CTE center can’t necessarily get to the point where they’re operating with lots of extra money. They’ll always need help because it’s an education-based program. That’s a huge need and asset to the students we’re serving.”
Jorgensen said ultimately, the EDA would have to choose if they wanted to continue funding smaller items like this or cease spending.
“Westridge Place was a very large project,” she said. “Unfortunately, you don’t have the funds where you could do another large project. If you take what’s left and you break it up between smaller items like this, that’s just the choice you make.”
Mayor Kathleen Backer spoke to her experience on the New Ulm School Board in the 80s as proof of needing to invest in innovative technology, as they established the first area computer lab.
“What it offers to our community beyond the college-bound students, and when we talk about trades and their skill sets, this is a great opportunity for us to invest in the future,” she said.
Board member Les Schultz offered the motion to approve the full $40,000 ask, with Henn seconding the motion.