2025 LEGISLATIVE REVIEW
Feature
Rep. Duane Quam DISTRICT 24A
Sen. Carla Nelson DISTRICT 24
Looking back on the 2025 legislative session, what legislation will have a significant impact on the Rochester area business community? This session, we were able to get several wins that will positively impact Rochester’s
Looking back on the 2025 legislative session, what legislation will have a significant impact on the Rochester area business community? The 2025 session brought a few wins for Rochester businesses. We passed long-
business community. Also, we blocked harmful proposals for expanding the sales tax to professional services, and defeated costly mandates on health insurers and food manufacturers. I was especially happy for permitting reforms at the MPCA and expand small business assistance through Minnesota Business First Stop. Both of which will help local employers cut through red tape and move projects forward faster.We also protected hospitals and clinics by stopping massive provider tax increases and preserving facility fees, important for Rochester’s healthcare sector and patient access alike. What is a major takeaway from the 2025 session? The major takeaway from this session: divided government can still deliver meaningful, bipartisan results when we stay focused on practical solutions. I’ll continue working to make sure our region’s employers have the freedom to grow, hire, and invest in the future.
overdue permitting reforms and funding for mental health and substance abuse. Both areas have a direct impact on workforce stability and productivity. We lowered the payroll tax cap in the paid leave program to 1.1% and made practical updates to the earned sick time program. But it was frustrating that our efforts to exempt the smallest businesses from these mandates were ignored. Looking at the larger picture, Minnesota businesses should be concerned. After blowing through an $18 billion surplus in 2023 and raising taxes by $10 billion, we are now facing a $6 billion deficit. This session, taxes and fees were raised by another $4.2 billion. Our proposals to address waste and fraud were rejected. And even though critical services like nursing homes and disability programs saw funding cuts, state agencies still received large increases. These are misplaced priorities. What is a major takeaway from the 2025 session? Of all the takeaways from the 2025 session, the biggest one is missed opportunities. Urgent Rochester-area needs, like the shovel-ready Highway 14 interchanges near Byron and the Rochester Airport, were excluded from the bonding bill. There was little serious mandate relief for schools or businesses, and yet again, taxes and fees were increased. One of the most frustrating moments was when the state quietly ended funding for the Minnesota Partnership for Biotechnology and Medical Genomics. This 20-year collaboration between the University of Minnesota, Mayo Clinic, and the state has led to medical breakthroughs, clinical trials, and impactful research into diseases like Alzheimer’s. Cutting this kind of research is short-sighted and difficult to understand. Minnesota, and especially Rochester, has long been a global leader in medical innovation. I have no doubts we still will, but ending funding for the genomic partnership is a significant step in the wrong direction. This is another case of misplaced priorities.
14 | ROCHESTER AREA CHAMBER OF COMMERCE ADVANTAGE MAGAZINE — AUGUST 2025
Made with FlippingBook Annual report maker