Small Business Voice E-newsletter

June 2008

This e-newsletter is distributed periodically to address issues that have the greatest impact on businesses with 100 and fewer employees. If you have any questions, please contact Jennifer Byers at (651) 292-4673, (800) 821-2230 or jbyers@mnchamber.com.

WE DELIVERED ON YOUR PRIORITIES
The Minnesota Chamber scored many victories at the 2008 Legislature, many of which are especially important to protecting the bottom lines of small businesses. Following are the results we delivered on the Small Business Policy Committee's 2008 priorities:

Your health care priority: Improve the individual health care market and oppose efforts to place the burden of providing health care coverage on businesses.

Results: Effective July 1, 2009, all employers with 11 or more full-time employees must establish Section 125 plans under the major health care reform bill. These plans will allow employees to purchase individual health insurance using pretax dollars, creating significant savings for individuals.

Though these plans can be an attractive tool for employers, the Minnesota Chamber also believes the plans should be voluntary. In that regard, we were successful in creating an opt-out for employers from this mandate so long as employers receive information and education on the value of Section 125 plans. The opt-out will be a simple check box form submitted to the Commissioner of Commerce. For employers who choose to establish these plans, the state will make available grant money to help cover the set-up cost.

Individuals also will have access to more affordable health care insurance in the private market through a provision in the final tax bill. A tax credit will be available to those who have access to Section 125 plans, provided the individuals have not had health insurance for the previous 12 months. This tax credit, in combination with the savings generated by purchasing health insurance using pretax dollars, will create significant savings and help individuals achieve coverage in the private market versus enrolling on a state publicly subsidized program.

These changes will help improve the individual health care market with minimal burden on employers.

The Minnesota Chamber will be providing educational opportunities on the potential benefits of a Section 125 plan so you can make an informed decision on whether these plans are right for your company.

Your tax priority: Reduce the gap in tax burdens between commercial/industrial and residential property.

Results: Business property taxes were not reduced, but the Minnesota Chamber defeated several measures that would have increased business property tax burdens. Two proposed changes in the statewide property tax would have raised taxes for commercial/industrial properties. No. 1, we defeated an increase in the base amount of the tax annually adjusted for inflation. No. 2, we opposed eliminating cabins from the tax, thereby shifting more property tax burden onto commercial/industrial property. The respective measures would have increased business taxes by $93 million and $35 million in FY 2008-2009. In addition, we blocked an extension of Limited Market Value beyond its scheduled phase-out of 2009, which would have shifted $31 million in property taxes for this year from protected properties (i.e. residential) to unprotected properties (i.e. commercial/industrial).

Your education priority: Increase accountability and improve the return on taxpayers' investment in education.

Results: The Minnesota Chamber played primarily defense on education and workforce development issues, protecting reforms intended to help Minnesotans better evaluate the outcomes they receive for their education dollars. We defeated the creation of an appeals process that would have allowed local school districts to grant diplomas to students who fail the new high school graduation tests - Minnesota Graduation-Required Assessments for Diploma-which would have undermined our efforts to close the achievement gap. We defeated the creation of a student academic "growth to the norm" model which would have measured and reported school performance relative to statewide averages as opposed to the current practice of measuring performance against statewide standards. We restored half of the money, $20 million, originally cut from Q Comp which ensures that additional districts may participate in the alternative compensation system that bases a portion of teachers' salary increases on performance.

Other legislation:
Minimum wage: The Minnesota Legislature passed a bill that would have raised the state's minimum wage above the federal rate. We opposed the bill, and Governor Pawlenty vetoed the measure. Businesses still face an increase in the minimum wage as provided in the 2007 federal law. Effective July 24, 2008, the federal minimum wage will increase from $5.85 to $6.55 per hour. The final increase - up to $7.25 - will take effect July 24, 2009.

Sales tax collection: Accelerated collection of the June sales and excise tax was increased from 80 percent to 90 percent. We opposed this measure for what it is - an accounting gimmick to help balance the budget. We continue to advocate that this shift be eliminated altogether.

WORKPLACE SAFETY: THE LATEST ISSUES AND TRENDS
June 25, 2008
8:00 a.m. - Noon
SFM training room, 6th floor
3500 American Boulevard West
Bloomington

Learn the latest trends in workplace safety from experts as well as your peers at this workshop presented by the Minnesota Chamber and SFM. A representative from the Occupational Safety and Health Administration will talk about the most common problems found in the workplace. Representatives from small, medium and large companies will share their experiences and best practices in workplace safety during a panel discussion. Joe Morin, loss prevention team leader from SFM , also will discuss the practicality of a having a safety program. To register, contact Lisa Engdahl at (651) 292-4699, (800) 821-2230 or lengdahl@mnchamber.com, or online at www.mnchamber.com. Cost: $79 for Minnesota Chamber Business Services insurance customers, $89 for Minnesota Chamber members and $129 for nonmembers.

ENERGY SMART
Reduce electricity use and save money
Businesses have another partner to identify ways to increase efficiency and improve their bottom lines through Energy Smart, a pilot project to be spearheaded by Minnesota Waste Wise. Energy Smart is an outgrowth of 2007 legislation which mandated changes in the Conservation Improvement Programs (CIP) operated by electric utility companies. The new law directs that utilities reduce customer energy use by 1.5 percent per year. Energy Smart is anticipated to launch in July, and the pilot project will mainly focus on electricity usage. The program will assist businesses in achieving energy efficiency savings by marketing and promoting existing Minnesota utility CIPs as well as other products and services. The program will drive customers to the appropriate utility CIP and energy audit services. Waste Wise staff also will help participants follow through with energy audit suggestions and, if necessary, assist businesses in finding available funding for energy efficiency upgrades and in applying for CIP rebates. For information, contact Mark Blaiser, Waste Wise executive director, at (651) 292-4663, (800) 821-2230 or mblaiser@mnchamber.com.

PROMOTE STUDENT INTERNSHIPS

Employers have a new way to connect with students and graduates from the 17 liberal arts colleges within the Minnesota Private College Council. By filling out a single form, employers can post their jobs or internships at any or all of the colleges. To do so, click on www.mnprivatecolleges.org/forms/job_posting/index.php.

The service was developed in partnership with Minnesota's Private Colleges Career Consortium. For more employer information, click on www.mnprivatecolleges.org/employer.

The Small Business Policy Committee meets from 11:30 a.m. to 1:30 p.m. the third Monday of each month at the Minnesota Chamber offices. If you'd like to become involved, contact Stacia Smith, manager of small business policy, at (651) 292-4692, (800) 821-2230 or ssmith@mnchamber.com.

This web site is developed and owned by the Minnesota Chamber of Commerce. Any use or reprinting is strictly prohibited without prior consent of the Minnesota Chamber of Commerce.

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