ST. PAUL, MN – DFL lawmakers in the Minnesota House of Representatives passed a robust job creation package yesterday 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).
“I’ve heard from countless Minnesotans that the creation of good jobs and growing our middle class is their top priority,” said Rep. Carly Melin (DFL—Hibbing). “Minnesota’s economy is recovering faster than most states, but many people in northern Minnesota are still struggling. Our jobs package makes a difference by putting people back to work and giving individuals and families more economic security.”
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.
“Many companies on the Iron Range have already had success in exporting their products,” said Rep. Melin. “In an increasingly competitive global economy, we want to make sure companies around the world buy the quality products we have to offer. With more funds for trade offices, we can build the kind of relationships that will expand jobs on the Range to meet increased demand.”
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.
“The additional funds for MHFA will make sure more Minnesotans can rely on stable, affordable housing,” said Rep. Melin. “That means greater economic security for individuals and families across our state.”
Rep. Melin encourages her constituents to contact her with any questions or feedback about the House DFL’s job creation package. She can be reached by phone at (651) 296-0172 or toll free at (888) 726-0711, by email at rep.carly.melin@house.mn, or by postal mail at 515 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.