Dear Neighbor,
The governor recently signed the first bill passed by the legislature this year. The bill extends for another year classification of COVID-19 in certain situations as an occupational related disease for the purpose of claiming workers’ compensation. That provision expired on Dec. 31, 2021. I supported the bill, which passed the House on a 126-8 vote.
The Minnesota’s Office of Management and Budget (OMB) recently reported an additional $649 million of tax collections over authorized spending. OMB will issue an updated semi-annual budget forecast early in March. Tax collects appear to still be running well ahead of authorized spending levels.
Early in March, the next semi-annual forecast is issued. The discussion on what to do with the billions of excess tax collections will intensify. There are some existing programs that need attention, such as support for nursing home workers and those that work with the permanently disabled. Also transportation, especially for the dollars that get down to county, townships and small city road and bridge funds.
Those are long-standing, existing programs, not new programs. I remain skeptical of creating new programs. That will not fix the current structural imbalance of excess tax collections over authorized state spending.
The billion-dollar hole in the state’s unemployment insurance (UI) trust fund also needs attention. We must fix this and hold businesses harmless, as our businesses were directed by the State of Minnesota to shutter their doors.
My friends across the aisle are proposing to only pay back the $1.2 billion Minnesota borrowed from the federal government, resulting only in a net-zero fund balance. That’s a half measure and will trigger major increases in the UI rates on all businesses later this year.
Failure to return that trust fund to a positive balance also risks immediately plunging the fund back into a deficit should we experience even a mild economic downturn.
I recently attended a Mining Summit hosted by Congressman Pete Stauber at Virginia, Minn. Six members of the U.S. Congress spent the day touring our iron mines and participated in a panel discussion with Minnesota’s major mining companies.
The panel included Jessica Johnson of Talon Metals representing the Tamarack Project. Jessica did an excellent job explaining the project including the important role it will play in domestic production of electric vehicle batteries and the very positive impact it will have on our local economy.
Sincerely,
Dale