statewide policy tour results 2014

2014

STATEWIDE POLICY TOURRESULT

S

Thank you 2014 Statewide Policy Tour

sponsor!

Albert LeaAlexandriaArden HillsBrainerdBurnsvilleDuluthFridleyGrand Rapids

MankatoMinnetonkaRochesterSaint CloudThief River FallsWillmar WinonaWorthington

HOSTED BY CHAMBER MEMBERS16 LOCATIONS:

Alakef Coffee RoastersDuluth ◦ 2014

Culligan Water Conditioning Minnetonka ◦ 1959

13 FACILITY TOURS

TODAY’S AGENDA

2013-2104 Biennium

• Results for your business

New issues? Continue current priorities?• Taxes, Minimum Wage, Workforce,

Energy, Transportation, Environment, Health Care

What can you do?

2013-2014 Biennium

A quick legislative recap…

Series1

0% 2% 4% 6% 8% 10% 12% 14%

Total Spending and Tax Growth

11.7%

9.4%

3.5%

2014-15GDP

Tax Increase/

Growth

SpendingIncrease/

Growth

2013/2014 SESSION: Tax and Spending Results

Minnesota Minimum Wage 8/1/2014 8/1/2015 8/1/2016Large Employers $8.00 $9.00 $9.50Small Employers $6.50 $7.25 $7.75Youth Wage $6.50 $7.25 $7.75Training Wage $6.50 $7.25 $7.75J nonimmigrant visa $7.25 $7.50 $7.75

Indexed in 2018…

2014 SESSION: Labor Issues

New Employer Mandates:Women’s Economic Security Act (WESA)• Pregnancy Accommodations • Pregnancy and Parenting Leave• Wage Disclosure Protections• Nursing Mothers Protections• Familial Status New Protected Class• Sick Leave Benefits and Care of

Relatives

2014 SESSION: Labor Issues

The positives:

Repeal of B2B taxes and gift tax

Estate tax threshold raised Transportation debate framed 5% efficiency for MnDOT in

2015

2014 SESSION: Positives

The positives:

Colleges, universities can advertise early college options to high schoolers

Defeated paid sick leave mandate and caregiver status

Expedited environmental permitting

Defeated new chemical regulations

2014 SESSION: Positives

WHAT WE HEARD:

• Recent changes make it harder to be a successful business in Minnesota.

• Elections matter. • Longstanding problems persist:

permitting, workforce, healthcare, labor.

• Keep pushing reform and accountability!

2014 Statewide Policy Tour

What We Heard: TAXES

• Taxes are burdensome and complex. • The competitiveness of our economic

climate is declining. • In many communities, individuals or

businesses consider leaving Minnesota.

“What should we work on?”:

• Pass-through exemption for business income

• Estate tax federal conformity• Fourth tier income tax – lower or eliminate• Tax reform and government accountability• Capital equipment sales tax exemption on

What We Heard: TAXES

What We Heard: LABOR

• Minimum wage increase is a big challenge. • Unemployment Insurance (UI) benefits too

generous. • Workers compensation benefits are high, may get

higher due to minimum wage increase.

To do’s: • Eliminate indexing on minimum wage • Reform prevailing wage, workers comp,

and UI.

What We Heard: EDUCATION / WORKFORCE

Widespread concern about the workforce: • “not every kid needs a 4-

year degree” • High-paying technical jobs,

but no qualified applicants • “We needed solutions

yesterday- or 5 years ago”

• Retirements loom large

Digi-Key CorporationThief River Falls ◦ 1989

• Higher education is too expensive. • Post-Secondary Enrollment Options (PSEO)

information increase is a good change. • Skepticism that U of M, MnSCU will respond in a

timely way.

To do’s: • Keep pushing workforce alignment and

career counseling. • Restore the grad test and teacher basic

skills test.

What We Heard: EDUCATION / WORKFORCE

What We Heard: PERMITTING

• Permitting timelines are too long. • Lack of certainty on time and cost.• Concern that water will be more regulated

and fees increased.

To do’s: • Monitor DNR decisions on water

regulation. • Keep pushing on permitting times

and agency processes.

What We Heard: TRANSPORTATION

• Understand more investment in highways, roads and bridges is necessary

• Little stomach for a “world class” funding package.

• Transit is important; but doesn’t help to move goods.

BNSF Railway Company Fridley ◦ 1969

To do’s: • Keep pushing agencies to be efficient• Think outside the box – gas tax is a short-

term solution.• Continue conversations with members;

educate on funding sources, role of counties vs state.

What We Heard: TRANSPORTATION

What We Heard: HEALTHCARE

• MnSURE / Affordable Care Act create uncertainty in cost and timelines - confusing and expensive.

• Rates released November 15th = little time to plan. • More employers give $$ for employees to

purchase their own health care.

To do’s: • Focus on transparency, quality,

accountability, and affordability.

What We Heard: ENERGY / ENVIRONMENT

• Concern about electric rates, biodiesel, and new carbon rules. “Where is our energy going to come from?”

To do’s: • Cost based rates• Monitor Environmental Protection

Agency (EPA) carbon legislation. MN should get

credit for being an early adopter.

What We Heard: OTHER

To Summarize: • Recent changes make it harder to be

successful in Minnesota. • Elections matter.• Longstanding problems persist:

workforce, permitting, healthcare, labor.

• Keep pushing reform and accountability!

Thank you 2014 Statewide Policy Tour

sponsor!