Business relief package approved, Governor extends business shutdown

Posted 12/22/20

This is the first opportunity I’ve had to share an update with you since Election Day, and I’d like to thank you once again for your continued support. It is an honor to represent your interests …

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Business relief package approved, Governor extends business shutdown

Posted

This is the first opportunity I’ve had to share an update with you since Election Day, and I’d like to thank you once again for your continued support. It is an honor to represent your interests in the Minnesota House and I truly look forward to serving as your state representative for the next two years.

I’d also like to thank those of you who have reached out with well-wishes. As some of you may know, I underwent quintuple bypass surgery in mid-October and I’m pleased to report everything is healing as expected. The good news is I’ve been able to stay engaged through online meetings, which due to COVID-19, has basically become the new normal. I’ve been attending cardiac rehab locally at Regina Hospital and everything I’ve heard from the doctors suggests I’ll be ready for the start of the legislative session. Believe me, even with the challenges we’re facing, I’m looking forward to it.

Our top priority this session will be setting a budget for the next two year budget cycle, and on December 1 we received some positive news.

For the budget cycle that ends in June, Minnesota now projects a $641 million surplus. For the 2022-23 budget period that begins in July, state economists project our state to face a $1.273 billion deficit. Earlier projections showed our current budget cycle would see a $2.4 billion deficit, and the upcoming budget cycle would see a revenue shortfall of $4.7 billion.

This tells me tax increases should not be part of the budget setting solution this spring. Our economy was in outstanding shape prior to the pandemic, and it’s now improved significantly since the start of the pandemic. I’m confident it will thrive again once a vaccine is distributed and life begins its return to normal.

On December 13, the Minnesota Legislature approved a $216 million relief package to help businesses impacted by Governor Walz’s latest shutdown. The goal is to assist our struggling businesses, give counties the opportunity to target relief towards those businesses who are desperately in need of assistance, and provide an extension of unemployment to our neighbors who are out of work. The plan will ultimately be paid for by federal funds when a bill is passed in Washington.

You’ll recall Governor Walz forced the closure of restaurants, bars, gyms and others on November 18. Since this shutdown, I have continued to work with local businesses to gather input and feedback on how state government can best assist them and to reach out to the administration on their behalf for guidance and clarification.

While I’m pleased the bill was approved, I’m disappointed on a number of fronts.

First, I’m frustrated with the method of calculation used to determine benefit eligibility. The proposal uses 2nd and 3rd quarter comparisons when local businesses and others were largely open, instead of the current quarter when their doors are locked. For this reason, the bill does not directly help many – such as several local restaurant owners – that are in need of assistance. Now Dakota and Washington counties can allocate state resources to these businesses, but they will have to wait for it, and there are no guarantees they will receive it.

Second, its disappointing businesses have had to wait nearly a month for help. These decisions should have been made prior to the forced closures.

Two days after the passage of this bill, Governor Walz announced many of the current business shutdowns and restrictions would continue into the new year. While the governor is now allowing gyms to operate at 25 percent capacity and other restrictions, a full shutdown of indoor dining at bars and restaurants continues. Youth sports also remain down, and theaters must remain closed.

It’s important to note that shuttered businesses aren’t looking for government help, they simply want to safely re-open. Business owners have spent months putting together safety plans for workers and customer protection and want to get back to work. No one is disputing that COVID-19 is real. But our goal moving forward should be to allow business owners to reopen with safety measures in place and get back to serving the public as quickly as we can.

As always, I value your input. You can contact me anytime with your legislative questions or concerns. I can be reached by email at [email protected] mn, or by phone at 651-296-3135.

Wishing you a very Merry Christmas and a Happy New Year.