2025: A year for balance and progress in the Minnesota Legislature

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

As we enter a new legislative chapter this year, the uncertainty surrounding the balance of power in the House has caused some initial drama. However, we expect these issues to be resolved, enabling progress during this legislative session. Last fall’s state elections spoke volumes about what matters most to Minnesotans: the economy and costs. Minnesotans desire a balanced approach to governance, and the business community shares this expectation for our elected officials. Bipartisan solutions are crucial to improving our economy, lowering costs for families and businesses, and addressing the challenges facing our state.

Our state’s economy is currently underperforming, placing Minnesota at a competitive disadvantage compared to other states. While it is tempting to reduce economic performance to a few indicators, the reality is far more complex and significant. Minnesota boasts a robust, diverse economy with a proud legacy of strength, home to leading Fortune 500 companies, advanced industry clusters, and one of the nation’s most educated and skilled workforces. These attributes make our state a hub of innovation and hard work. However, the Chamber’s 10th annual Business Benchmarks report, released at the Economic Summit in November, highlights troubling trends that demand attention. Our economy is growing more slowly and declining in size compared to peer states. Despite low unemployment, we face labor shortages and a declining population. To secure our economic future, we must work together to pass policies that promote growth rather than hinder it.

This legislative session, the Chamber’s goal is to unite the business community and elected officials around principles of reasonable, responsible governance and economic competitiveness. It is vital to balance the budget with a deadline only a few months away. Legislators must recognize that businesses and taxpayers cannot afford new taxes or an increase in workplace mandates. Responsible governance requires accountability and transparency. Fraud has cost taxpayers hundreds of millions of dollars, and policymakers must heed the Office of Legislative Auditor to ensure accountability for state agencies and programs. Over the past two years, the Legislature has imposed 35 new workplace mandates. Implementing these mandates must be fair and transparent. Employers need flexibility as the state rolls out major changes, such as the Paid Family Medical Leave program, set to take effect next year. The Chamber is committed to working with lawmakers to refine this law, making it more manageable for employers.

Across Minnesota, businesses have repeatedly emphasized one issue above all: costs. Rising costs from mandates, taxes, and new laws are making businesses less competitive and putting pressure on both employers and employees. Policymakers have the power to foster economic growth or risk losing to other states. Pro-growth tax policies, a fair regulatory environment, and initiatives that attract workforce and investment are essential to improving competitiveness and cultivating innovation in Minnesota.

The Chamber’s message to policymakers is clear: Grow the tax base, not tax rates. Minnesota’s economic future hinges on the decisions made by elected officials and their willingness to collaborate with the business community. By working together, we can achieve balanced governance and create a thriving economic environment. This is the year for balance. Together, we can ensure that Minnesota reaches its economic potential, allowing our communities to succeed. Let’s make 2025 a year of progress and opportunity for all Minnesotans