Dear Neighbors, Friends, and Community Partners,
Mid-May is here, and the end of the legislative session is frantically upon us. We are hearing and debating the final versions of budget bills and some new programs like Paid Family Leave—a new payroll tax and social program.
With this new Paid Family Leave program, House Democrats have voted to significantly raise taxes on every business and every person in Minnesota that earns a paycheck!
The bill, House File 2, received initial approval last week in the House. It establishes a mandatory paid leave program funded by a new tax on employers and workers at a time when the state has a $17.5 billion surplus. This will impact every employer in the state – not just businesses.
The program will be paid for by a brand-new, $3 billion tax on employers and employees and expands employers’ leave obligations to part-time and temporary workers.
Unlike the Federal Family and Medical Leave Act, which only applies to employers with 50 or more employees, this program would apply to all employers including those with only one employee. Employees can stack leave together, allowing for up to 20 weeks of paid time off per year.
Unbelievably, as many as 400 new full-time employees will need to be hired to develop and administrate the statewide program.
We know from the examples of the past like the MNLARS and MNsure debacles, the state government is not the most efficient or effective at standing up large IT projects. Nevertheless, Democrats want to put the State of Minnesota in charge of your paid family and medical leave benefits.
Additionally, if you work at a company like Target, General Mills, or others that already offer generous paid family and medical leave plans, the bill will kick you off your plan, place you on the state-run plan, and then charge you for the benefits via a new payroll tax.
A Better Option, Private Market Solution: MN FAMLI
There is no doubt that some Minnesotans are asking for improved access to these benefits. It is important for families to spend time with a newborn, to take care of a sick relative, or to take time to heal. That’s why House Republicans offered an alternate plan that would provide these benefits to Minnesota families without any of the taxes, mandates, or bureaucracy in the Democrats’ proposal.
Our plan would incentivize small businesses to participate by providing a tax credit and allowing the private sector to operate the program. Unfortunately, the House majority would not allow this proposal to move forward.
If you like your already existing benefits, you can keep them—you won’t be forced onto a government-run program. Minnesotans could opt into the program for $5 per week if an employer does not join by using the parameters of the state’s paid leave policy, leveraging the power of the state’s tens of thousands of employees.
More details can be found here:
Unfortunately, House Democrats continue to push forward with their tax and spend agenda.
Staying in Touch
While the work of putting the state budget together is important, I hope we can all enjoy the rites of spring and the end of the school year like Prom, year-end banquets, and high school and college graduations.
Thanks again for all your support. Please feel free to share this with neighbors and if they want to subscribe to future Koznick Connections sign up here: https://bit.ly/3HBujIU
Jon Koznick
State Representative