LEGISLATIVE SESSION REVIEW
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Sen. Carla Nelson DISTRICT 24
Rep. Tina Liebling DISTRICT 24B
Looking back on the 2024 legislative session, what legislation will have a significant impact on the Rochester area business community? The restoration of P-TECH funding was a major victo- ry. Continuing the program’s
Looking back on the 2024 legislative session, what legislation will have a significant impact on the Rochester area business community? In 2024 we built on the
success of the 2023 Tax Bill by establishing advanced periodic payments of Minnesota’s nation-leading Child Tax Credit to help families escape poverty. For E-12 education, we strengthened the READ Act and created 5200 new voluntary pre-kindergarten seats beginning in 2025. In health, we continued reforming prior authorization, to remove more unnecessary barriers and allow providers to determine what care is appropriate. SE Minnesota has a serious problem with nitrate contamination in drinking water. The legislature put additional money toward cleaning up nitrates in drinking water and helping to reduce the fertilizer use that causes contamination. Businesses must now use all-inclusive prices. This gives businesses a level playing field and lets consumers compare prices. What is a major takeaway from the 2024 session? Minnesota is growing and outcompeting neighboring states on many metrics. DFL leadership in the Legislature and in the Governor’s office has led to progress in many areas in ways. Responsible regulation and investment in the health and well-being of our population is consistent with economic growth. We all do better when we all do better.
amazingly successful STEM workforce pipeline will reap major rewards for our community. However, the session brought concerning changes to the Paid Family Medcial Leave (PFML) program and Earned Sick and Safe Time (ESST) laws that will greatly burden small businesses. Despite warnings, PFML costs ballooned to $1.6 billion annually, requiring another payroll tax increase. Small em- ployers now face a 50% higher PFML tax rate than original- ly promised. New ESST penalties, documentation require- ments, and expanded leave uses will increase compliance costs. These workplace mandate changes ignore the reali- ties small businesses face and make it significantly harder to operate, grow, and create jobs. Finally, the ultra-parti- sanship of the 2024 session prevented the legislature from completing another bonding bill that could have funded critical infrastructure projects for the Rochester area. Positive outcomes included stopping a $20 minimum wage, blocking a new health insurance claims tax, and govern- ment-run public health option. We also fixed tax errors from 2023 that would have cost businesses and individuals over $350 million per year. What is a major takeaway from the 2024 session? I've served in both chambers, in both majority and mi- nority, but I've never witnessed anything like the bitter partisanship of the last two years. Divided government may not be easy, but it produces far superior results to unchecked single-party control. The other major takeaway is that one-party control at the state capitol is crushing Minnesota’s small businesses. We have the highest corpo- rate tax rate in the country and the sixth-worst business climate. Rather than improving our economic competitive- ness, we’ve seen a $72 billion spending spree, $10 billion in tax increases, and a raft of new regulations and mandates that have increased costs and burdens for businesses and their employees. These new burdens threaten small em- ployers across the state – especially when combined with uncertainties around additional future tax increases and regulations, and our expensive cost of living. We need a re- turn to balanced government that supports all businesses, employees, and their families.
16 | ROCHESTER AREA CHAMBER OF COMMERCE ADVANTAGE MAGAZINE — AUGUST 2024
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