WHAT YOU NEED TO KNOW RESTORATION OF P-TECH FUNDING
This law mandates the increase of the minimum wage to $10.85 across the board, eliminates exemptions for small businesses, seasonal employers, and the hospitality industry, and increases the annual inflator from 2.5% up to 5%. With the market already driving competitive wages, this one-size-fits-all minimum wage, coupled with the increased inflator cap, disproportionately impacts our small business community, exacerbating the existing challenges of rising costs and increased taxation. DEFEATED PROPOSALS Several proposals that would have further strained the business community were successfully defeated this session. A proposed 5% broadband tax that would have allowed governmental units to impose a tax on broadband services did not pass. Additionally, a proposal to create a MinnesotaCare public option was also defeated. Had this bill passed, doctors and healthcare providers would have seen minimal payments for services, jeopardizing healthcare access, especially in rural areas. THE BONDING BILL SETBACK Despite it being a bonding year, the legislature failed to pass a compromise bonding bill. This was particularly disappointing as a key priority of the Chamber’s 2024 legislative agenda was the support of local bonding projects. Projects such as interchanges on Highway 14 at CSAH 3 and CSAH 5, solar parking at Rochester International Airport, Olmsted County’s Next Gen Resource Recovery facility, and many others went unfunded due to this. The Chamber will continue to work with our legislators to champion these beneficial projects for the community in the next session. CONTINUED ADVOCACY AND ENGAGEMENT Throughout the ups and downs of the 2024 legislative session, the Chamber made a concentrated effort to strengthen our relationships with local delegation members and legislative leadership, including Senate Minority Leader Mark Johnson and House Minority Leader Lisa Demuth. The willingness of our delegation and legislative leadership to discuss legislation and its impact on the business community was crucial in achieving several items on our legislative agenda. We extend our gratitude to our legislators and businesses for their continued engagement with our advocacy efforts this session!
One of the major achievements this year was the restoration of P-TECH funding for Rochester Public Schools. Last session, changes to the P-TECH state funding structure left Rochester’s P-TECH facing a funding cliff. Initially, a small, temporary fix was proposed to phase out state funding over a multi- year period through 2027. This proposal was then incorporated into HF5237, the House Education Supplemental Budget Bill. The Chamber took action and urged local lawmakers to accept an amendment that ensures Rochester receives $971,000 in FY’25, $500,000 in FY’26, and $250,000 in FY’27 which was a large increase from what was previously proposed. The Chamber was pleased to see this success, as P-TECH not only benefits students but also serves as a crucial resource for the local business community, providing education tailored to in-demand career pathways that meet workforce needs. LICENSURE COMPACTS Another significant win was the passage of HF4247, which established licensure compacts for professions with strong workforce needs, including licensed professional counselors, dentists and dental hygienists, physician assistants, occupational therapists, physical therapists, and social workers. These compacts streamline the licensure process, enabling qualified professionals from neighboring states to practice in Minnesota, both in person and through telepractice. By doing so, we alleviate workforce shortages, enhance access to essential services, and better serve underserved communities and rural areas. This was a step in the right direction, and the Chamber will continue to advocate for additional licensure compacts for in-demand careers such as nursing. LEGISLATIVE CHALLENGES While the 2024 legislative session lacked the vast number of mandates on the business community seen in 2023, it still hindered businesses' opportunities to succeed and remain competitive on their own accord. In 2024, the legislature made minor tweaks to the paid family medical leave program, which remains an area of serious concern regarding its long-term viability due to soaring costs. This year alone, the anticipated payroll tax to fund the program rose to 0.88%, higher than the original 0.7% initially planned. Additionally, the legislature passed the labor policy omnibus bill, SF3852, which included changes to the minimum wage structure in Minnesota.
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AUGUST 2024 — ROCHESTER AREA CHAMBER OF COMMERCE ADVANTAGE MAGAZINE | 13
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