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State Representative Tim Mahoney
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4277
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Column/LTE
Getting Minnesotans back to work
The struggling economy has hit home for many Minnesota families. Parents are worried about keeping the jobs they have or finding new jobs since they’ve been laid off. Those are concerns that don’t fall on deaf ears at the state Capitol, and job creation will be the top priority during the 2010 Legislative Session that began Feb. 4.
Minnesota, like states across the country, is feeling the effects of the worst economic conditions since the Great Depression. Statewide, unemployment has reached 7.4 percent and 217,000 people are searching for jobs, including 10,000 right here in St. Paul.
These troubling numbers are a call to action. Along with other lawmakers, I’m supporting legislation that will immediately jump-start the state’s economy, invest in small business growth and send Minnesotans back to work.
Both houses are working on a bonding bill that could create 10,000 jobs and make serious investments in higher education, transportation improvements and clean water infrastructure.
The bonding bill has the support of State Economist Tom Stinson, who is urging passage within the first few weeks of the session. There is no better time to pass a bill that funds construction projects; bids on projects are coming in one-third less expensive than expected and the state will also enjoy low interest rates on borrowing. That means taxpayer money will be invested wisely and each dollar stretched further.
Some of the money from the Houses’ version of the bonding bill will be spent right here on the East Side. The bill will provide $1.1 million for improvements to the Phalen-Keller Regional Park, including channel restoration between Phalen, Keller and Round lakes, renovation of the waterfall at Lake Phalen, and lighting and landscaping near the waterfall. It will also provide $9.2 million for classroom construction and renovation at Metro State University.
One piece of Legislation to keep your eye on, and one that I have co-authored, is a tax credit for high-tech startup companies. The Angel Investment Tax Credit will give investors more incentives to provide capital to these emerging companies that want to hire local workers at high wages. For every $100 invested in such a company, the investor will get back $25 in tax credit — up to $125,000
Here’s why this is important: Surrounding states already have Angel credits. Therefore, the small businesses that might have otherwise located themselves right here in St. Paul are instead moving to other states — sometimes as close as Wisconsin — where they are more likely to get investors. Every time one of those businesses chooses another state, Minnesota loses out on high paying jobs and tax revenues.
I’ve listened to small business owners, high tech companies and folks from Wisconsin who can testify to the benefits of passing an Angel tax credit. According to the Minnesota Department of Employment and Economic Development, the credit could create 6,300 jobs that pay $43,000 to $55,000 annually. Plus, it would add $21 million to the state’s tax revenues.
The coming months will be of great importance for the future of Minnesota. State government does not have all the answers for fixing a sluggish national economy that was brought on by poor policy. But it can make sure that when things turn around, Minnesota is not a state left in the rear-view mirror of recovery.
I encourage your input during this Legislative Session. Please don’t hesitate to contact me at the Capitol. I can be reached by phone at 651-296-4277 or by be-mail at rep.tim.mahoney@house.mn.
Rep. Tim Mahoney is the chair of the House Biosciences and Emerging Technologies Committee and represents the East Side of St. Pau
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- DFL Jobs Initiatives to be Heard in House Jobs and Economic Development Committee - (Posted: 2012-02-29 00:00:00)
- REP. MAHONEY, DFL LEGISLATORS BUILD ON DFL JOBS PLAN WITH NEW INITIATIVES - (Posted: 2012-02-01 00:00:00)
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