The document summarizes the results of the 2014 statewide policy tour hosted by 16 Minnesota chamber of commerce locations. It provides an overview of the key issues discussed, including concerns about rising taxes and costs, challenges around workforce development and regulations, and a desire for continued reforms in areas like healthcare, transportation, and the business climate. Business owners expressed that recent changes have made it harder to succeed in Minnesota and that longstanding problems remain around areas like permitting, labor costs, and developing a skilled workforce.

1. 2014 STATEWIDE POLICY TOUR
RESULTS

2. Thank you 2014 Statewide
Policy Tour sponsor!

3. HOSTED BY CHAMBER MEMBERS
16 LOCATIONS:
Albert Lea
Alexandria
Arden Hills
Brainerd
Burnsville
Duluth
Fridley
Grand Rapids
Mankato
Minnetonka
Rochester
Saint Cloud
Thief River Falls
Willmar
Winona
Worthington

4. Alakef Coffee Roasters
Duluth ◦ 2014
CulliganWater Conditioning
Minnetonka ◦ 1959
13 FACILITY TOURS

5. TODAY’S AGENDA
2013-2104 Biennium
• Results for your business
New issues? Continue current priorities?
• Taxes, Minimum Wage, Workforce, Energy,
Transportation, Environment, Health Care
What can you do?

6. 2013-2014 Biennium
A quick legislative recap…

7. 2013/2014 SESSION: Tax and Spending Results
Total Spending and Tax Growth
11.7%
9.4%
2014-15
3.5%
GDP
Tax
Increase/Growth
Spending
Increase/Growth
0% 2% 4% 6% 8% 10% 12% 14%

8. 2014 SESSION: Labor Issues
Minnesota Minimum Wage 8/1/2014 8/1/2015 8/1/2016
Large Employers $8.00 $9.00 $9.50
Small Employers $6.50 $7.25 $7.75
Youth Wage $6.50 $7.25 $7.75
Training Wage $6.50 $7.25 $7.75
J nonimmigrant visa $7.25 $7.50 $7.75
Indexed in 2018…

9. 2014 SESSION: Labor Issues
New Employer Mandates:
Women’s Economic Security Act (WESA)
• Pregnancy Accommodations
• Pregnancy and Parenting Leave
• Wage Disclosure Protections
• Nursing Mothers Protections
• Familial Status New Protected Class
• Sick Leave Benefits and Care of Relatives

10. The positives:
2014 SESSION: Positives
 Repeal of B2B taxes and gift tax
 Estate tax threshold raised
 Transportation debate framed
 5% efficiency for MnDOT in 2015

11. The positives:
2014 SESSION: Positives
 Colleges, universities can advertise early
college options to high schoolers
 Defeated paid sick leave mandate and
caregiver status
 Expedited environmental permitting
 Defeated new chemical regulations

12. 2014 Statewide Policy Tour
WHAT WE HEARD:
• Recent changes make it harder to be a
successful business in Minnesota.
• Elections matter.
• Longstanding problems persist:
permitting, workforce, healthcare,
labor.
• Keep pushing reform and accountability!

13. What We Heard: TAXES
• Taxes are burdensome and complex.
• The competitiveness of our economic climate
is declining.
• In many communities, individuals or
businesses consider leaving Minnesota.

14. What We Heard: TAXES
“What should we work on?”:
• Pass-through exemption for business income
• Estate tax federal conformity
• Fourth tier income tax – lower or eliminate
• Tax reform and government accountability
• Capital equipment sales tax exemption on

15. What We Heard: LABOR
• Minimum wage increase is a big challenge.
• Unemployment Insurance (UI) benefits too generous.
• Workers compensation benefits are high, may get higher due
to minimum wage increase.
To do’s:
• Eliminate indexing on minimum wage
• Reform prevailing wage, workers comp, and UI.

16. What We Heard: EDUCATION / WORKFORCE
Widespread concern about the workforce:
• “not every kid needs a 4-year
degree”
• High-paying technical jobs, but
no qualified applicants
• “We needed solutions yesterday-or
5 years ago”
• Retirements loom large
Digi-Key Corporation
Thief River Falls ◦ 1989

17. What We Heard: EDUCATION / WORKFORCE
• Higher education is too expensive.
• Post-Secondary Enrollment Options (PSEO) information
increase is a good change.
• Skepticism that U of M, MnSCU will respond in a timely way.
To do’s:
• Keep pushing workforce alignment and career
counseling.
• Restore the grad test and teacher basic skills test.

18. What We Heard: PERMITTING
• Permitting timelines are too long.
• Lack of certainty on time and cost.
• Concern that water will be more regulated and fees
increased.
To do’s:
• Monitor DNR decisions on water regulation.
• Keep pushing on permitting times and
agency processes.

19. What We Heard: TRANSPORTATION
• Understand more investment in highways, roads and
bridges is necessary
• Little stomach for a “world class” funding package.
• Transit is important; but doesn’t help to move goods.
BNSF Railway Company
Fridley ◦ 1969

20. What We Heard: TRANSPORTATION
To do’s:
• Keep pushing agencies to be efficient
• Think outside the box – gas tax is a short-term
solution.
• Continue conversations with members; educate on
funding sources, role of counties vs state.

21. What We Heard: HEALTHCARE
• MnSURE / Affordable Care Act create uncertainty in cost and
timelines - confusing and expensive.
• Rates released November 15th = little time to plan.
• More employers give $$ for employees to purchase their own
health care.
To do’s:
• Focus on transparency, quality,
accountability, and affordability.

22. What We Heard: ENERGY / ENVIRONMENT
• Concern about electric rates, biodiesel, and new carbon rules.
“Where is our energy going to come from?”
To do’s:
• Cost based rates
• Monitor Environmental Protection Agency (EPA)
carbon legislation. MN should get credit for
being an early adopter.

23. What We Heard: OTHER
To Summarize:
• Recent changes make it harder to be
successful in Minnesota.
• Elections matter.
• Longstanding problems persist:
workforce, permitting, healthcare, labor.
• Keep pushing reform and accountability!

24. Thank you 2014 Statewide
Policy Tour sponsor!