Dear Neighbor,
Greetings from the Capitol. Before we get to my latest notes, I want to share a quick reminder that registration is open for the upcoming TeenPact leadership and government youth classes at the Capitol. More details are available at this link, and please share this info with anyone you think may be interested.
Here’s the latest from St. Paul:
California Cars mandate repealer
A bill (H.F. 376) repealing California’s strict vehicle standards, unilaterally adopted in Minnesota by Gov. Walz in 2021, continues making its way through the process.
Minnesota should not be following California’s extreme policies, which hurt local businesses, increase consumer costs, and reduce individual freedom. This bill puts Minnesotans back in charge of our auto regulations and stops heavy-handed government mandates.
When you look at the landscape of auto sales across the country, record amounts of inventory are putting the balance books of auto dealers at risk. The last thing dealers need is for the government to step in and mandate what cars they need to sell in a market that has potential to fail.
Watch for more as this bill makes its way forward in the House.
It’s always special when House members are joined by their children in the Chamber. Here are a couple of such moments the Swedzinski family enjoyed.
Light rail bill
The Ameriprise building in Minneapolis sold for $200 million back in 2016, around the time construction began on the SWLRT track from Minneapolis to Eden Prairie. That same building was just sold for $6.25 million, due to a massive decline in demand in less than a decade.
That tells us a lot has changed in recent years, from evolving business models to a rise in violent crime downtown. Meanwhile, Minnesotans have already paid more than twice the original cost of the SWLRT, which has ballooned from $1.25 to $2.9 billion and is nearly a decade behind schedule.
It’s time to call it a day and stop chasing the dream when advancements in technology, a digital economy, and an increasingly mobile workforce have rendered this antiquated rail system moot. Unfortunately, this week House Democrats blocked from passage a bill (H.F. 14) which places a moratorium on funding for light rail projects. It remains at the front desk and available to be taken up again down the road.
Tax increase on workers
We recently learned that the Paid Family Leave tax rate enacted when Democrats had full control of the Capitol will increase by more than 25% from what was initially set in the 2023 bill. The Minnesota Department of Employment and Economic Development estimates the payroll tax rate for the state program will cost Minnesotans roughly $350 million more than the rate approved in 2023.
This program is set to launch Jan. 1, 2026, but it is not ready. Employees and employers were already facing more than a billion dollars in tax hikes due to this legislation, and this announcement shows that burden will be even higher.
The program is funded by a payroll tax, reducing take-home pay for employees and increasing costs for businesses, which may pass expenses onto workers through lower wages or reduced benefits. Small businesses, in particular, face an uphill battle to afford this tax, potentially leading to job cuts or reduced hours. Additionally, not all workers will use the benefits, meaning many pay into a system they may never need. While the program provides security for some, it comes at a financial cost to all Minnesota workers.
Let’s take a step back, delay PFML, and find a practical solution that supports both employees and employers. House Republicans are working on a common-sense fix, so stay tuned.
Girls sports
 The Preserving Girls Sports Act (H.F. 12) is expected to have a vote of the full House on Monday. The bill ensures girls have safe and fair athletic competitions. It says: “Only students of the female sex may participate in an elementary or secondary school athletic team or sport that an educational institution has restricted on the basis of sex to women or girls.” A rally will take place at the Capitol earlier in the day and we hope to see a good crowd in support of safe and fair girls sports. Have a good weekend and please stay in touch. Sincerely, Chris |