Public Policy Position

2022 Legislative Session Priorities

Minnesota's economic recovery is imperative

2022 Federation Priorities in partnership with the Minnesota Chamber of Commerce

Local chambers represent economic vitality in their communities. The Minnesota Chamber Federation unites and amplifies the voice of local chambers by advocating for policies to advance business in every corner of the state. We have worked to promote pro-growth policies to the Legislature for a more than a decade, helping ensure that state lawmakers understand the needs and interests of Minnesota's diverse and successful local business community.

The state's 2 year budget was set in 2021 with nearly a 10% increase in spending from the previous biennium. Minnesota will likely have a significant budget surplus providing the opportunity to accelerate our state's economic growth and improving Minnesota's tax climate. The state will be flush with cash:

$1.15 Billion federal funds unspent (from $2.8 billion federal ARPA bill)

$2.39 Billion budget reserves (after expected transfer in November 2021)

Billions in additional surplus dollars expected after the November 2021 forecast

Replenish the Unemployement Insurance Trust Fund

Use American Rescue Plan (ARPA) funds and the likely large budget surplus to help resolve the $1.13 billion deficit in Minnesota's Unemployment Insurance Trust Fund. Nearly half of the other states in the country have replenished their unemployment insurance funds with money from the CARES Act or ARPA. Minnesota lawmakers could impose a significant payroll tax hike on employers to replenish the fund. Increased payroll taxes will further impede economic recovery. Employers should not be penalized especially when state and federal funds are available to cover this pandemic created deficit in the Unemployment Insurance Trust Fund.

Tax Relief

Reducing Minnesota's tax burden continues to be the number one priority of Minnesota businesses. Minnesota has the third highest corporate income tax, and fifth highest personal income tax rate in the country. These taxes, coupled with other significant tax burdens are one of the major factors driving an increase in the number of businesses to consider locating and expanding in other states. The Legislature can encourage long term economic growth by reducing uncompetitive taxes that are hindering entrepreneurship, talent recruitment and retention, and business growth and investment. This includes getting Minnesota out of the top ten highest tax rankings by lowering top rates for both corporate and individual income taxes; continuing progress in reducing the state business property tax levy and enacting federal estate tax conformity.

Enact Employer Friendly Workforce Strategies

The ability to attract and retain workers is as important to employers as reducing the overall tax burden. Minnesota employers are subject to a unique 0.1% payroll tax that generates over $150 million dollars per biennium for workforce development programs that too many employers simply do not use. A more collaborative approach in the development and management of and access to these programs would provide a greater return on investment for both employers and our workforce. Further, allowing employers to receive a credit on this tax to support their own customized training specific to their needs would have an immediate and direct benefits to the workforce.

Facilitate Innovation and Productivity

An important ingredient for Minnesota's future success is a thriving and growing private sector. Business success is contingent on an environment that is attractive to investment, risk-taking, innovation and growing productivity. Access to capital is also critical. Encouraging investment and innovation through the angel tax credit; enhancing the research-and-development tax credit and similar tax incentives to encourage investment and productivity improvements will help generate needed capital for new business growth.

Do No Harm

Oppose additional mandates and workplace restrictions: Minnesota businesses must be provided the autonomy to make appropriate and responsive decisions for their workplace, and changing economic conditions. We support employer flexibility in determining workplace wage, benefit, scheduling and staffing decisions. Employers design benefit packages to meet their employees' needs. Employer protections must be recognized, addressed and implemented if Minnesota legalizes use of recreational marijuana. In addition, Minnesota's environmental and regulatory process must provide greater timeliness, accountability and predictability.

Streamline Inefficient Regulation: Reasonable regulation is essential to keeping Minnesota's workers, consumers, and our environment safe and healthy, but Minnesota burdens employers with regulations, certifications, licensing, and permitting requirements more than other more competitive states. Overregulation harms our economy - by raising prices, thwarting competition, stifling employee earnings, and can keep otherwise qualified individuals unnecessarily under-employed - or out of the workforce altogether. We support reforms requiring the state to use the least restrictive regulation necessary and remove duplication. Minnesota's environmental and regulatory process must provide greater timeliness, accountability and predictability.

Elk River Area Chamber of Commerce also supports the following positions on an on-going basis

Labor/Management - Reduce Employer Costs

Repeal automatic inflation index & add a tipped employee tier to the Minnesota minimum wage law.

Allow business owners, employers and employees to deduct the cost of insurance on a pre-tax basis regardless of the status of an employer's group plan. This would allow employers to reimburse employees for the cost of insurance, rather than stand the cost of a group plan which may not fit their needs.

Broadband Improvements

Improve the access, reliability and use of broadband in an effort to enhance economic development opportunities and improve the quality of life.

Recognize that the availability of broadband is a critical component to businesses' economic vitality.

Increase the opportunities for access to funding for broadband development to enable private sector businesses to respond to the increasing demands for this type of infrastructure.

Investing in broadband is an investment in the people and businesses of the state of Minnesota and impacts our state economy, our environment and our quality of life.

Transportation Investment

Supports preservation of local roads and bridges, and other transportation infrastructure using revenues from the transportation related sales and fuel taxes. Mobility and safety improvements should be funded from the state capital bonding bill or other legislation such as the Corridors of Commerce funding introduced in 2013. Businesses of all kinds rely on local roads and bridges to move products in and out of their facilities.

Encourages federal, state, county and municipal investment to leverage grant dollars as a tool for infrastructure acceleration. Recent projects completed by matching or supporting local funds to leverage state and federal dollars resulted in accelerated completion of the projects. The Chamber supports creating increased opportunities and incentives to maximize the use of available grant dollars.

Encourages the legislature to continue to fund the Corridors of Commerce legislation to catch up on necessary infrastructure improvements while maintaining appropriate funding for maintenance and repair of existing roads.

Supports creating a state-administered program of funding to provide grants and infrastructure preservation and improvement of Minnesota's short line freight railroads, their shipper customers and the communities they serve. Additionally we are supportive of public private investments that would be used for improving and expanding rail spurs in industrial parks that grow commercial and industrial activity. Such infrastructure improvements will support the growth of business as well as job creation across the county and beyond.

Public Policy Position

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