ST. PAUL, MN – DFL lawmakers in the Minnesota House of Representatives passed a robust job creation package today 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).
“The people of northeastern Minnesota should be pleased to know that our focus is on creating jobs that pay a good wage and benefits so folks can provide for their families,” said Rep. Tom Anzelc (DFL—Balsam Township). “Our job creation package grows the middle class and creates greater economic security for Minnesotans throughout our state.”
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. Northern Minnesota’s wood products and minerals economy will benefit. According to Rep. Anzelc, the keys to the future are value added products and expanding markets.
“These investments ensure that Minnesota remains a great place to start and own a business,” said Rep. Anzelc. “That means more jobs for young people, stronger communities, and a healthier economy for the people of Minnesota.”
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.
“Everyone knows that it’s virtually impossible to hold a steady job if you don’t have a place to call home,” said Rep. Anzelc. “I’m pleased this bill tackles this problem head on. Taking action to expand affordable housing and prevent foreclosures makes good economic sense.”
Rep. Anzelc 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) 296-4936, by email at rep.tom.anzelc@house.mn, or by postal mail at 517 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.