St. Paul, Minnesota — On Wednesday, the House DFL unveiled their jobs package with an increase of $46 million in funding over the previous biennium.
The bill includes a substantial tax cut for MN employers through a reduction in the rate that employers pay on unemployment insurance. Rep. Joe Radinovich (DFL – Crosby) was the chief author of this provision. This reduction will save businesses almost $350 million in the next two years and the average Minnesota employer will save $150 per employee.
“This is a responsible tax cut that will provide businesses with more money that they can then use to hire new workers, expand their business, and grow our economy,” said Rep. Radinovich. “With our economy still slowly recovering, this could be a nice boost for businesses around the state.”
Minnesota’s UI tax rates are determined by the balance in the UI Trust Fund. The Trust Fund has recovered from the economic downturn and is projected to have sufficient reserves — well within the solvency levels recommended by the federal government — to meet future needs.
The proposal also contains $750,000 in grants for Enterprise Minnesota — legislation originally proposed by Rep. John Ward (DFL – Baxter). The grant would go to the Growth Acceleration Program, matching grant that enables small manufacturing companies to access business improvement services.
Since its inception in 2008 GAP has helped more than 245 Minnesota manufacturers create or retain 1,700 jobs and realize a $15 return for every $1 spent by GAP. Two local companies have benefited from this program: Stern Companies, Inc. in Baxter and Pequot Tool in Pequot Lakes.
Manufacturing represents one in seven jobs in Minnesota. Each manufacturing job supports another 1.3 jobs elsewhere in the economy or 800,000 jobs in the state, a total of 29 percent of the workforce.
“This small grant produces big results,” said Rep. Ward. “I’m hopeful that we can continue to grow this proven program and bring a manufacturing boost to the Brainerd Lakes Area.”
One of the largest single investments proposed is $20 million to the Minnesota Investment Fund (MIF) which helps companies bring quality jobs to the state delivering funds to Minnesota cities, which can then offer incentives for businesses to come to their area. It also brings $33 in private investment for every $1 it loans out.
Another significant investment will be over $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 in Minnesota.
“While our economy has continued to improve, we still have a ways to go,” added Rep. Ward. “This is a bold, ambitious bill that will accelerate our recovery and help local businesses and middle-class Minnesotans.”
Other investments include $1.5 million for the Minnesota Trade office to help create business relationships that strengthen Minnesota’s economic output and $5 million for a Fast Trac program that works to provide local employers with the skilled workers they need to grow.
“Building a strong middle-class economy now and for the future is one of our top priorities this session and this plan will help us meet that goal,” concluded Rep. Radinovich. “This jobs package will help train Minnesotans and close the jobs skills gap, help businesses make important investments, and give our local economies a boost.”
Reps. Ward and Radinovich encourage constituents to contact them with any questions, comments, concerns, or ideas on any legislative topic. Rep. Ward can be reached by phone at 651-296-4333 or by email at rep.john.ward@house.mn. Rep. Radinovich can be reach by phone at 651-296-2365 or email at rep.joe.radinovich@house.mn.