2026 LEGISLATIVE PREVIEW
Feature
Sen. Carla Nelson
DISTRICT 24
What do you believe are the most pressing issues impacting the Rochester area business community that can be addressed during the 2026 legislative session? The most pressing challenge facing Rochester’s business community, and really all of Minnesota, is the cost of living made worse by the decisions of state leaders over the last few years. Families and small businesses are feeling squeezed. Taxes and state spending have climbed at an unsustainable pace that makes life more expensive in nearly every area, from housing to healthcare to energy. In just one legislative session, the Democrat trifecta spent an $18 billion surplus, imposed $10 billion in tax hikes, and raised state spending by 40%, leaving us facing a projected $6 billion deficit around the corner. In 2025, taxes were raised
another $4.2 billion. That pattern cannot continue.
Another serious problem is the out-of-control fraud in Minnesota. Former Acting U.S. Attorney Joe Thompson said that “billions” of our tax dollars have been stolen. That money should have helped people who truly need it or been used to ease the burden families and small businesses are facing. Instead, it disappeared. I have brought forward proposals to strengthen oversight and accountability, but these ideas were defeated by my friends on the other side of the aisle. In 2026 I hope we can recommit to protecting taxpayers and restoring trust in how their money is used. What are your expectations for the 2026 legislative session? What potential legislation should the business community be aware of? I am hopeful the 2026 session will begin with a renewed spirit of cooperation. The tragedies that took place this summer were difficult for all of us, and many leaders have talked about the need to turn down the volume and focus on our shared goals. I plan to hold them to those words. One obvious area where we can work together is fraud prevention. The governor’s decision to begin a third-party audit of Medicaid spending is a good step (and one that should have happened long ago), but pausing payments for 90 days has created anxiety for legitimate providers and the vulnerable people who depend on them. We need to target the fraudsters without hurting those who are doing the right thing. Another area is the state’s tax and regulatory climate. The new paid leave program was well-intended, but I talk to small businesses every day who tell me about the very real challenges they have in implementing it. I also hear from schools that are still facing budget stress despite large funding increases, and from families whose paychecks do not stretch as far as they once did because our taxes and spending have climbed so high. I will continue to speak up for smarter budgeting, fairness, and relief for workers and small businesses alike. What are your top priorities for the 2026 legislative session? My priorities for the upcoming session focus on restoring stability and affordability for Minnesota families and small businesses. We have to stop waste and fraud in government programs; every stolen dollar is one that cannot be used for relief, education, infrastructure, or care for the elderly and disabled. We also need to provide meaningful regulatory relief. Small businesses are the backbone of our economy. They need fewer obstacles, not more. I hope to continue discussions about exempting the smallest employers from paid leave and earned sick time requirements and cutting back on unnecessary red tape. Finally, I will continue advocating for local priorities such as the Highway 14 improvements and the interchanges at County Roads 3 and 5. A focused bonding bill that prioritizes infrastructure would help our communities grow and keep Minnesota moving forward.
If we can work together with respect and common sense, I believe we can make Minnesota a place where families and businesses can thrive.
8 | ROCHESTER AREA CHAMBER OF COMMERCE ADVANTAGE MAGAZINE — DECEMBER 2025
Made with FlippingBook Annual report maker