Statewide policytours fall 2013 final
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The Minnesota Chamber’s course for 2014 is set! We will aggressively advocate for the priorities of the statewide business community at the Legislature. The united voice of Minnesota businesses is more important than ever given the current political environment. Your engagement is essential to help keep our businesses competitive in the global economy. Our Priority issues for the 2014 legislative session include: Tax relief (specifically B2B taxes), Education and Workforce, Transportation, Environmental Regualtions & Minimum Wage.
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Statewide policytours fall 2013 final
- 1. 2014 SESSION • 2014 ELECTION Setting the course for 2014
- 2. What did we LEARN in 2013 to PREPARE for 2014?
- 3. LESSONS LEARNED Elections matter! New budget direction, new policy direction • • • • More spending More taxes More jobs? Better results?
- 4. 2013 SESSION Spending and Tax Growth – FY 14/15
- 5. 2013 SESSION Spending and Tax Growth – FY 16/17
- 6. 2013 SESSION RESULTS $$ New budget direction: • $1.1 billion personal income tax increase • $424 million corp. tax increase • $324 million B2B sales tax increase • $408 million tobacco tax increase • $1.6 billion in new spending, $2.9 billion total • Incentives for some, higher costs for everyone
- 7. 2013 SESSION RESULTS Permitting – more regulations debated Exchange – premium tax, less choice? Education – reforms eroded Energy – costs up, more mandates Primary – stalled
- 8. Building the agenda for 2014 We heard from YOU…
- 9. WE’RE GLAD YOU’RE HERE! • Board members • Members • Grow Minnesota! • Local chambers • Business Barometer • Coalition Partners • Regional Meetings • Issue Focus Groups • Small Biz Focus Groups YOUR VOICE!
- 10. BUILDING THE 2014 AGENDA Preliminary Priorities: • • • • • • Business sales taxes repealed Transportation Minimum wage Environment Workforce Energy and health care costs
- 11. BUILDING THE 2014 AGENDA Repeal business-to-business sales tax • Labor service charges for repair and maintenance of business equipment • Purchases of telecommunications equipment by cable and phone companies • Storage and warehousing services of business related goods
- 12. BUILDING THE 2014 AGENDA Tax wish list • • • • Simplify the system Rollback income tax rates Deduction for pass thru entities Estate tax relief
- 13. BUILDING THE 2014 AGENDA Transportation: History of support 2006 – led “Vote Yes” campaign • MVST amendment: 40 transit/60 road 2008 - $6.6 billion package • • • • 8.5 cent fuel tax .25% metro sales tax for transit Increase in motor vehicle registration tax Efficiency task force
- 14. BUILDING THE 2014 AGENDA Transportation: Build consensus & lead • Deliver on 2008 commitment to efficiency • Greater ROI on current investments • Every region has a project – but limited support for > tax increase • 2014 spending reform initiative
- 15. BUILDING THE 2014 AGENDA Minimum Wage – Defense • • • • • • Federal conformity ($7.25) Youth wage Training wage (90 days) Tiered wage (tipped employees) No escalator Local government preemption KEEP Minnesota COMPETITIVE!
- 16. BUILDING THE 2014 AGENDA Environment – Offense • • • • Protect our natural resources Members see little progress Permit certainty No more fee increases make DECISIONS on SCHEDULE and on BUDGET
- 17. BUILDING THE 2014 AGENDA Education + Workforce Improving K-12 outcomes: • Support principals - let them choose staff • Support teachers – better professional development through performance pay and evaluations • Support parents – provide info so they know their student is on-track • Halt further rollback of reforms REFORM to DRIVE academic results
- 18. BUILDING THE 2014 AGENDA Education + Workforce Build a world-class, skilled workforce: • Strengthen “experiential” learning – apprenticeships, custom training • Expand K-12 early college and tech prep programs • Better align postsecondary courses with industry needs MINNESOTA: the SKILLED workforce
- 19. BUILDING THE 2014 AGENDA Health Care & Energy Control cost increases • Uncertainty in health care: MNSure • Federal health care law changes • New solar mandates for energy • More rate cases NO MORE MANDATES, TAXES and FEES!
- 20. BUILDING THE 2014 AGENDA Have we missed anything that is IMPORTANT to your BUSINESS?
- 21. BUILDING THE 2014 AGENDA Legislature’s 2014 Priorities ++ + Plus… • Bonding • Transportation funding increases • Minimum wage increase
- 22. UNSESSION Governor Mark Dayton is promoting the 2014 Legislature as the Unsession, asking for suggestions on how we can make state government better by doing less. Any ideas?
- 23. GRASSROOTS ADVOCACY We need your help: • • • • • • • JOIN the Minnesota Chamber’s grassroots network SIGN the B2B repeal petition CONTACT your legislators REFER other businesses to the Minnesota Chamber HOST legislators at your business SHARE YOUR STORY! Testimonials, letter to the editor ENGAGE employees – grassroots training
- 24. 2014 ELECTIONS And one more priority based on the fact that ELECTIONS MATTER… Elect a pro-business House of Representatives!
- 25. 2014 ELECTIONS 2014 Elections – start helping now! • TALK with us about candidates • ENCOURAGE employees to participate… • Run for office • Host candidates • MAKE a contribution
- 26. THANK YOU to our sponsor, THANK YOU to our host, THANK YOU all for being here!
Notes de l'éditeur
- The result of the 2013 session is a very large increases for both spending and taxes. New spending of $1.6 billion. If add spending growth plus new spending it is a $2.9 billion increase for FY 14/15. New taxes of $2.3 billion. If add tax revenue growth already projected due to economic growth plus new taxes, tax growth is $3.3 billion 9% increase. Forecasted growth for FY 16/17 is even more astounding.
- Slide 5 – FY 16/17 spending and tax growth Spending growth is now projected to be $4 billion for FY 16/17 10.8% growth Taxes growth is $5.3 billion for FY 16/17 – 15% growth from previous forecasted FY 14/15. It is questionable if the 2013 session will result in greater fiscal stability. Relaying on much more volatile revenue sources with corporate income, upper income taxpayers, cigarette and Legislature greatly expanded permanent spending. General fund budget in FY 16/17 will now top $40 billion.
- Total cost to repeal is $315 million if make taxes retroactive to 7/1/2013. Two of the b2b taxes have already started on July 1st, 2013 which is labor and telecommunications. Storage and warehouse is effective April 1, 2014. If do not make retroactive and make effective April 1st then cost is closer to $220 million to repeal. Repeal would cost less than 6/10ths of one percent of total general fund spending. So a very solvable budget problem.
- BACKGROUND In 2006, the Minnesota Chamber led a $4 million “Vote YES” campaign with support from over 75 coalition members to support the passage of a constitutional amendment altering the distribution of the Motor Vehicle Sales Tax (MVST). The amendment dedicated at least 40 percent of MVST revenue to transit and not more than 60 percent to highway purposes. Prior to passage of the amendment, the state had no dedicated transit revenue and a significant portion of MVST revenue had been allocated to the general fund. In 2008, the Minnesota Chamber led the state’s business community in supporting a historic ten year, $6.6 billion dollar package of transportation funding increases to improve and expand our state’s transportation infrastructure. The phase in of the fuel tax increase was just completed this July. The funding package included: an 8.5₵ increase in the fuel tax, a metro sales tax increase of .25%, and, an increase in the Motor Vehicle Registration Tax. We supported this legislation, over Governor Pawlenty’s veto, because it was the consensus position of the state’s business community that new investment in our transportation system was needed. With this significant infusion of dollars we asked MnDOT to undertake steps to reduce costs and increase efficiencies to maximize Minnesotans’ investment. The Transportation Strategic Management and Operations Advisory Task Force was charged with making recommendations about how MnDOT could improve its operations and efficiency. The goal was to free up more of the current revenue for investment in projects. The Task Force delivered a report to the legislature, governor, and relevant leaders in January 2009 with several recommendations. To date, it is difficult to determine how much progress MnDOT has made in implementing these recommendations. In 2013, several additional transportation funding related measures were passed: An increase in the wheelage tax from $5 to $10 and an expansion of it from the seven county metro area to all counties. Allowance for local option sales taxes in the 80 non-metro counties without the requirement of a referendum. $300 million in bonding for the Corridors of Commerce program for construction, reconstruction and improvement of trunk highways. We also got hit with a $2.3 billion tax increase. The Minnesota Chamber is still in the process of gathering input and feedback from our members about what our official policies will be for the 2014 session, including our transportation policy. What we have heard clearly so far is that the first priority of the business community should be to make sure MnDOT make good on the commitments made back in 2008 to maximize efficiencies in the way our transportation dollars are spent. Our members have also said that another tax increase after last session would be hard to take. Rest assured, transportation remains at top priority for the Minnesota Chamber and the Minnesota business community. As stated earlier, we will spend the month of November traveling the State and soliciting our members input as to how to address both road and transit needs. I hope you will be part of that conversation. We will also be working with our Transportation Policy Committee to develop a policy that best represents the interests of our members for the 2014 session. As always, you will be one of the first to see those policy drafts and we are very interested in your thoughts and ideas. Major debate – all kinds of taxes (roads, bikes, bridges) – do you agree?
- Last year leg Major debate – all kinds of taxes (roads, bikes, bridges) – do you agree – should MN Chamber have this as one of our priorities?
- Youth Wage: The Chamber recognizes the importance of a youth wage that allows employers to pay those under the age of 18 a wage below that of the current minimum. Training Wage: Allows an employer to pay an employee under the age of 20 a wage below the current minimum wage during the first 90 consecutive days of employment. Local Unit of Government Preemption: Prohibit local government units to enact their own local minimum wage ordinances. Tiered Wage: The Chamber supports the proposal by the Minnesota Hospitality Association to create a new tiered wage structure for employees that receive tips as long as it does not come at the expense of a higher minimum wage for all employers. Opposition to Automatic Esclator: The Chamber opposes any attempt to include an automatic increase of the state minimum wage through the use of any automatic escalation mechanism, including but not limited to tying the increase to the consumer price index.
- Permitting & review concurrently
- Principals need staffing flexibility so they can “pick their team”! We support stronger professional development for teachers and think that a big first-step will be merging the Q Comp performance pay and professional development system with the new teacher evaluation system Parents need better data from schools and from assessments so they can know whether their child is “on track” and learning what they need to know at each grade level. Reforms to protect: high school graduation requirements, strong standards, teacher basic skills tests, student proficiency testing
- The Chamber is working on legislative and non-legislative solutions to making sure more students are able to learn through hands-on experiences, like traditional internships, apprenticeships, customized training programs, etc. Students need dual credit options, and we need to remove the barriers school districts are experiencing expanding these programs Training needs to align with work – we are engaged in several efforts aimed at better aligning postsecondary training with industry