For more information contact: Ted Modrich 651-296-5809
(ST. PAUL) — Yesterday, Governor Dayton, joined by DFL legislators, announced a jobs plan to put Minnesota back to work. The plan provides small businesses with new incentives to create jobs, improves workforce development and training, and invests in infrastructure.
State Representative John Ward (DFL – Brainerd) supports the plan.
“I’m proud to stand with Governor Dayton and my DFL colleagues in making job creation my top priority for the 2012 Legislative Session," said Rep. Ward. “We are at a critical juncture in our economic recovery. While there are signs that Minnesota is slowly pulling out of the recession there are still 170,000 Minnesotans are out of work and middle class families are struggling to make ends meet. And in Brainerd and Crow Wing County, unemployment is far higher than the rest of the state — we simply can’t afford inaction.
“This jobs plan goes a long way in getting Minnesotans back to work by supporting businesses in growing jobs and preparing our workforce for the new economy.”
As a member of the bipartisan Small Business Caucus, Rep. Ward is authoring two additional bills to help Minnesota businesses: Legislation to repeal the June accelerated sales tax payments for businesses and another bill to make the fee for any late property tax payments for small businesses the same rate as residential late payments. Currently, the late payment fee for small businesses is far higher than the residential fee.
“I will be strongly advocating for these job growth initiatives during the 2012 legislative session,” added Rep. Ward. “We need to do all we can to build a strong middle class and this strategic and targeted jobs proposal will help get workers back on the job and position Minnesota for future economic prosperity.”
Below are details of the jobs plan:
Helping Businesses Grow Jobs
• New Jobs Tax Credit: The New Jobs Tax Credit is focused on immediate job creation. It would provide businesses with a $3,000 tax credit for each unemployed Minnesotan, veteran or recent graduate hired in calendar year 2012 and a $1,500 credit for each new hire through June 2013. This $35 million initiative would create over 10,000 new, private-sector jobs each year.
• Invest in Infrastructure: A new bonding bill, to be announced next week, would provide $775 million for new investment in infrastructure, allowing primarily private-sector employers to put tens of thousands of Minnesotans back to work. The bill would also include $20 million in bonding requests by the Department of Employment and Economic Development specifically designed to help businesses expand in Minnesota.
• Help Minnesota Compete for Business Expansion: $10 million in funding would be provided for the Minnesota Investment Fund, which has a track record of helping Minnesota to attract businesses to locate or expand here. The MIF fund was used to help Agco expand in Jackson early last year, adding 100 jobs in farm equipment manufacturing to an existing base of 900 jobs. The funding helped Minnesota win the re-location of operations from France as the company was also considering putting its facility in Georgia where it has U.S. headquarters. The total investment leveraged in Jackson is $14.8 million.
• Internet Sales Tax Fairness—Affiliate Nexus: Under current law, out-of-state retailers that do not have a physical presence in Minnesota are not required to collect the sales tax on online purchases used and consumed in Minnesota. As a result, a large portion of the taxes due on sales by large internet retailers—such as Amazon—go uncollected. This results in a loss of state revenue and gives these remote retailers an unfair competitive advantage over Main Street Minnesota retailers. Passing the Internet Sales Tax Fairness bill would level the playing field for Minnesota businesses and generate about $3.5 million in FY2013. This initiative is supported by more than 150 MN retailers across the state.
Training Minnesota’s Workforce for the New Economy
• Expand the FastTRAC Program Statewide: Minnesota FastTRAC helps underprepared adults succeed in the workplace by integrating basic skills education and career-specific training in fields where new skills are in high demand. This approach helps match business needs with workforce development more efficiently. To date, 88% of participants in FastTRAC credit-bearing courses have successfully completed their course. An expansion of FasTRAC statewide would cost $4.5 million.
• Minnesota Opportunity Grants Pilot Program: These grants will go to adults who pursue and complete short-term education and training at a Minnesota State Colleges and Universities institution in high-demand career fields, as identified by DEED’s Current Demand Indicator. The Opportunity Grants will provide a $2,000 grant for 2,000 Minnesotans for up to two semesters of training for jobs that pay more than 175% of poverty. The program will address the job skills gap that is a barrier for some workers to re-enter the workforce or move to a higher wage job.