The Minnesota Senate on Monday approved a Jobs and Economic Development Policy bill that fails to take the steps necessary to address Minnesota’s labor shortage or increase worker wages. Recent reporting indicates Minnesota still has 10,000 fewer jobs today than it did before the pandemic, lagging behind more than two-thirds of states. Due to inflation, Minnesotans are also paying $13,000 more per year compared to what they did in 2021.
“Minnesota is currently 10,000 jobs short compared to where employment numbers were before the pandemic, and instead of prioritizing legislation that expands the workforce and helps businesses grow the economy, we are actively halting job growth,” said Senator Eric Pratt (R-Prior Lake). “This Jobs bill should have been hyper focused on expanding opportunities for Minnesotans and training workers for careers that have the potential for growth and financial opportunity, yet it falls far short of that goal.”
The bill weakens several guardrails aimed at ensuring taxpayer dollars are used appropriately. The legislation eliminates requirements for local government grant applications to provide detailed cost estimates, timelines, and commitments to repay if milestones are not met. Included language also removes the limit that no more than 10% of funds allocated to grantees under the State Dislocated Worker Program can be used for administration, risking further administrative bloat.
Senate Republicans offered several amendments to improve the bill:
- Requiring DEED to work with MMB to determine the effectiveness of new programs or of grants of $500,000 or more
- Reinstating a 10% cap on administrative costs for grants to nonprofits
- Reinstating a requirement that DEED prioritize projects with highest public benefit
Another amendment author by Sen. Pratt would have allowed small businesses to receive a tax credit for using Workforce Development Fund money to either upskill current entry-level employees or provide training that leads to an increased salary or opportunities for career advancement with the employer.
“I’ve talked to business owners across the state who are concerned with the current workforce shortage, and are also deeply concerned about the lack of training to ensure candidates and applicants are qualified for specific jobs,” continued Pratt. “This is forcing local business to take on additional training expenses, which is incredibly taxing on smaller employers. I offered an amendment that would have addressed this issue by allowing small employers with less than 100 employees to receive a credit if they are using that money to provide training to entry-level employees. I was disappointed that the amendment was not accepted, because it would help our employers, would incentivize training, and would help address workforce needs. If we are serious about addressing workforce shortages, we must prioritize legislation that fosters job growth throughout our state.”
Senate Democrats rejected all amendments offered by Senate Republicans.