ST. PAUL, MN – DFL lawmakers in the Minnesota House of Representatives passed a robust job creation package this week on a vote of 75 to 57.
The omnibus bill, which also included provisions from the Housing and Commerce Committees, invests an additional $46 million over the next biennium in programs proven to put people back to work, such as the Minnesota Investment Fund (MIF).
“This bill is an important investment in our economic future,” said Rep. David Bly (DFL—Northfield). “It’s going to keep Minnesota competitive and expand economic security for individuals and families. Creating good jobs is one of my top priorities. This bill gives us the tools to put people back to work.”
One of biggest components of the House DFL’s jobs package is a $20 million investment in MIF to provide financial incentives, such as low-interest loans, to out-of-state businesses that are thinking of setting up shop in Minnesota as well as in-state businesses that are thinking of expanding. According to the Department of Employment and Economic Development (DEED), MIF leverages over $33 in private investment for every $1 awarded.
Another significant investment in the jobs package is $18 million for a job creation fund. These dollars would be allocated to the Department of Employment and Economic Development (DEED), which would then use the fund as a tool to help businesses make capital investments and create jobs.
Other investments include $1.5 million for the Minnesota Trade Office to help create business relationships around the globe to strengthen Minnesota’s economic output.
“Our job creation plan will keep Minnesota’s unemployment rate moving down,”
added Rep. Bly. “When you add these measures to proposals like our property tax relief package, it’s going to make a big difference in many people’s lives.”
Another component of the House DFL job creation package cuts unemployment insurance taxes paid by employers so they have more money in their pockets to retain and hire additional employees. The tax rate reduction saves businesses almost $350 million in the next couple years, with the average employer saving $150 per employee.
The omnibus bill also includes a $22 million ongoing funding increase for the Minnesota Housing Finance Agency (MHFA), which is the first significant ongoing increase in over a decade. MHFA is responsible for preserving federally-subsidized rental housing, promoting successful homeownership, helping communities recover from the foreclosure crisis, and preventing homelessness.
“As Vice Chair of the Housing Committee, I was proud to help shape legislation that provides Minnesotans with greater housing stability,” said Rep. Bly. “There is a serious lack of affordable housing throughout our state. This bill confronts that problem head on. Expanding affordable housing means that Minnesotans will have more money in their pockets to spend at local businesses. We need that to happen if we want our economy to keep growing.”
Rep. Bly encourages his constituents to contact him with any questions or feedback about the House DFL’s job creation package. He can be reached by phone at (651) 296-0171, by email at rep.david.bly@house.mn, or by postal mail at 559 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.