2025 legislative priorities: COSTS MATTER

Minnesotans want a balanced approach to governing
our state. Bipartisan solutions like improving the
economy, and lowering costs for families and
businesses will help solve the state’s challenges.

Fiscal responsibility
Job one for the Legislature is to enact a sustainable, balanced budget by May 19. The budget is projected to spend more than is collected over the next four years. Legislators must recognize that Minnesota businesses and taxpayers cannot afford new tax increases or additional workplace mandates. 

Good governance through accountability and transparency
Government fraud costs taxpayers hundreds of millions of dollars. Policymakers should act upon recommendations from the Office of the Legislative Auditor and enact accountability measures for state agencies and programs. 

More than 35 new workplace mandates were passed in the last two sessions. These state-imposed mandates do not consider market conditions and are not scoped accordingly. Implementation must be fair and provide sufficient guidance for employers to comply. Legislators should provide greater flexibility in how the state-mandated Paid Family Medical Leave program is implemented by employers. 

Other state-imposed mandates, from health insurance to energy production and consumption, increase costs and weigh down the economy. More effort must be placed on identifying, quantifying, and addressing the
growing burden of these hidden state-imposed costs.

Taxes
Elected officials must support a pro-growth tax system, to improve competitiveness, cultivate innovation, attract investment and talent, and foster job growth and retention. 

Enhancing the research and development (R&D) tax credit would encourage investment. Minnesota lawmakers should conform to provisions of the 2017 Tax Cuts and Jobs Act, if it is extended by the federal government. This is especially true for provisions related to R&D expensing.

Workforce
Employers are working toward building and retaining a skilled workforce that is responsive to the state’s economy. Legislators should consider policies that require recipients of related state aid to stay and be a part of the Minnesota workforce for three years post-graduation. This guarantees taxpayers a direct return on investment and is a critical tool for combating demographic, employment, and migration trends.

Bipartisan solutions that reduce costs
Regulatory reforms to the state’s environmental permitting process will make it more predictable, accountable and timely, while protecting natural resources and encouraging economic development and expansion. 

State funding to continue the state’s individual market reinsurance program will avoid large premium hikes and avoid destabilization of the market.