Dear Neighbor,
The Legislature is set to adjourn two weeks from this Monday. Here’s a look at the lay of that land and some other notes from the House:
Omnibus bill update
Omnibus finance bills that will shape our state’s next two-year budget have received preliminary approval in both the House and the Senate. Let’s hope conference committees make substantial improvements to these packages before they come back for votes on final approval because the preliminary versions were not what most Minnesotans want.
We could start with the basic fact the House Democrats’ budget bills would raise state spending by an outrageous 40 percent and increase taxes by $9.5 billion at a time the state has a $17.5 billion surplus. Yet, they fail to adequately fund nursing homes and don’t fully eliminate the state tax on Social Security as so many Democrats promised last fall.
The Democrats’ omnibus packages also include ill-advised measures to significantly compromise our constitutional rights under both the First Amendment and the Second Amendment, and would deal a real blow to local charities by ending electronic pull tabs as we know them.
Worker leave bill
House Democrats approved legislation Tuesday which will hurt employee wages and damage businesses by establishing a mandatory paid leave program funded by a new tax on employers and workers at a time the state has a $17.5 billion surplus.
The program Democrats propose creates massive, new government bureaucracy for an issue that can be better handled for everyone with private-sector solutions. Workers and businesses alike deserve a system that can be tailored to their own needs instead of having a restrictive and costly mandate placed upon them. That’s the approach Minnesotans want, and House Republicans are looking to deliver.
The program H.F. 2 creates would cost billions of dollars to get up and running and require as many as 400 new full-time government employees to develop and administrate. This program applies to virtually every industry in the state – private employers, nonprofits, cities, counties, and school districts – despite objections. It would be funded with a $2.9 billion tax on employers and employees and expands employers’ leave obligations to part-time and temporary employees.
All this taxpayer cost and bureaucracy seems to be overkill, especially when the Minnesota Chamber of Commerce reports 80 percent of its members already provide paid family leave.
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 24 weeks of paid time off per year.
On the other hand, House Republicans have developed a plan which takes a different approach, providing a small-business tax credit to incentivize employers to join the plan. The key difference is that our plan provides paid family and medical leave benefits for employees without unworkable mandates and new taxes.
The House Republican proposal provides a small business tax credit to incentivize employers to join the plan. Minnesotans may 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 10s of thousands of employees.
Workers who are satisfied with their current benefits can keep them without being forced onto a government program. Our proposal is a more cost-effective and flexible model that would deliver better results for job creators and employees alike.
The House Republican option is backed by an insurance company, so taxpayers will not be expected to cover the costs of program shortfalls or losses. Benefits would be available to Minnesotans this Jan. 1 – a full 18 months earlier than the House Democrat proposal.
I was able to add a small, but reasonable amendment to the Democrat bill Tuesday, ensuring fraudulently obtained program benefits are treated as criminal matters. The House Republican plan also was offered as an amendment to the Democrat bill – but House Democrats voted down that offering before approving their own bill, sending it to the Senate.
Look for more from the House as we head down this session’s home stretch. Until next time, have a good weekend and please keep in touch.
Sincerely,
Harry