Model business heralded by Emmer benefited from Bush, Obama stimuli

Republican gubernatorial candidate Tom Emmer is taking a bit of heat for hosting his jobs plan announcement at a small business, Permac Industries, that benefited from stimulus spending, which Emmer has criticized. The issue has several media outlets chasing down the details and Permac distancing itself from programs it bragged about just last week.

At Permac on Labor Day, Emmer and reporters had this exchange:

WCCO’s Reality Check says that Permac Industries, the Burnsville manufacturer, benefited from the first stimulus package enacted under President Bush and the second one enacted under President Obama.

Hailed as a model small business, Permac has received help from the federal government to expand its operations:

According to the Bush White House then: “As a result of the stimulus package, Permac Industries – a manufacturing company in Minnesota – will purchase much of their equipment to fill their recently doubled manufacturing space this year. Owner Darlene Miller expects these investments to expand manufacturing capacity by 25 percent, and plans to hire at least five more workers.”

Permac’s owner, Darlene Miller, was interviewed by the Center on Budget and Policy Priorities last week about the TANF Emergency Fund which allowed her to hire at least one worker. The TANF Emergency Fund came out of the stimulus package.

“The subsidized jobs program has provided us with a wonderful way to identify dedicated and dependable workers like Royal,” said Permac Industries President Darlene Miller. The subsidized jobs program placed five paid interns at Permac Industries, expanding Miller’s business while training candidates for unsubsidized positions. These interns, in turn, are developing the experience needed to increase their financial independence.

WCCO asked around to see how the TANF program works:

According to DEED Spokeswoman Kirsten Morrell: “The program is called TANF Emergency Fund. Minnesota DEED and Dept. of Human Services received a $6 million grant to administer this program jointly. This is stimulus funding. The program provides wage subsidies for public and private-sector companies to hire people with limited skills and job prospects (mainly people on public assistance / MFIP). The program does not provide training – just wage subsidies. This program ends on Sept. 30, 2010.”

The Rochester Post-Bulletin also explored the benefits reaped by Permac and included Miller’s response: The company didn’t get a direct check from the government in relation to the stimulus package passed under Obama.

A current Permac employee went through the program and was later given a permanent position in the company and another trainee is going through it now, said CEO Darlene Miller. “It would be no different than if a college provided an intern to us,” she told AP.

While the company doesn’t have to pay the workers during training, Miller said no direct government money came the company’s way either.

“There’s no check to us. There’s nothing,” Miller said. “It’s a short-term period to help them learn. We’re doing this to benefit them. It really is a community service thing.”

Though the stimulus played at least a small role in Permac’s bottom line, Emmer has consistently spoken out against the policy. He even criticized those who benefit from the stimulus.

“Putting out a bunch of empty buckets in hopes of catching dollars raining down from Washington; that isn’t leadership, that’s desperation because you have no new ideas of your own,” Emmer said in a statement in 2009. “Our citizens, our taxpayers and especially our business owners deserve better; this bill gives our state a chance to compete for new jobs.”