Hello from the State Capitol,
Local employers received some welcome news from the State Capitol as an unnecessary tax increase that was forced upon them has been eliminated.
I voted in favor of the bill, which addressed Minnesota’s unemployment insurance trust fund deficit.
Minnesota needed to replenish its unemployment insurance trust fund by more than $1 billion. You’ll recall $9.3 billion in available state surplus funds could have been used for this purpose months ago, as well as federal COVID relief funding that totaled more than $1 billion. Because the House majority was playing political games with this proposal and chose not to utilize either of these pots of money, the default repayment had been tax increases on local employers by 14% or more. The continued inaction also cost $50,000 a day in interest payments.
The Legislature recently approved a proposal that not only replenishes the unemployment insurance trust fund utilizing existing revenue but ends the tax increase on Minnesota’s job providers.
So, while I’m pleased we have found an answer to this problem and our job providers will no longer face a ridiculous tax increase, I’m troubled that the process actually took this long.
Many local employers are probably wondering what will happen next. The Minnesota Department of Employment and Economic Development has established a site to help employers understand how the approved legislation will affect them. Visit: https://mn.gov/uimn/employers/employer-account/news-updates/tax-changes-affect-you.jsp
Have a good weekend,