Expect More Economic Progress in 2014

This article was originally published in the Northfield News on Wednesday, December 4, 2013.

Minnesota recently received more positive news about our economy from the Department of Employment and Economic Development (DEED).

We learned that our unemployment rate fell to 4.8 percent during the month of October, the lowest it’s been in six years and currently one of the lowest rates in the country.

That kind of economic progress was made possible by passing a new balanced state budget without borrowing or using gimmicks. We can expect to see even more economic progress over the next year thanks to wise investments in education, job creation, and tools to reduce Minnesotans’ property taxes.

For example, unemployment insurance taxes paid by Minnesota employers will go down starting on January 1, 2014. It’s a significant tax cut that saves businesses $346.5 million over the next two years. Savings like that gives private sector job creators more resources to improve their bottom line and hire more workers.

The new state budget increased funding for the Homestead Credit Refund and the Renter’s Property Tax Refund, two tools that directly reduce Minnesotans’ property taxes. In Rice County, 3,000 homeowners who received a refund in 2013 will see an average increase of $203 in 2014, and 500 renters will see an average increase of $149. Statewide, these investments mean that over 137,000 more homeowners and over 30,000 more renters will now be eligible to apply for refunds.

Our investments in education and Local Government Aid (LGA) are also helping to reverse the trend of perpetual property tax hikes, especially in Northfield. After two consecutive years of increases, local elected officials will not raise property tax rates here and our school district levy will decrease in 2014.

After a decade of under-investment in our people forced middle class Minnesotans to shoulder a greater financial burden for the cost of our needed services like firefighters, police officers, and schools, our new state budget is reversing that trend by asking those who are extremely well off financially to chip in a little more each year to help pay for those needs – an approach that is much more fair, and a promise made to Minnesotans that we kept.

There is more we can do over the next year to put people back to work and make sure all Minnesotans can provide for themselves and their families.

First, we need to increase the minimum wage. There are far too many Minnesotans working multiple low-wage jobs who still do not have basic economic security. Establishing a living wage will help more Minnesotans keep a roof over their head and put food on the table. Plus, consumers will have more money to spend, helping to increase demand for goods and services from local businesses.

Second, we need to invest in Minnesota’s road, bridges, and other infrastructure through bonding and transportation funding. A top-notch transportation system will help our state stay competitive and speed the flow of commerce between regional centers in Greater Minnesota.

Other priorities for 2014 include helping our schools make progress on implementing reforms like all-day Kindergarten, addressing issues that impact our farmers like the pollinator decline and water safety, and making sure our workforce can find affordable housing and options for transportation so they can get to work, shop at small businesses, and enjoy local entertainment and recreation.

Please feel free to contact me with any questions or feedback about the new state budget or Minnesota’s economy. You can reach me by phone at (651) 296-0171, by email at rep.david.bly@house.mn, or by postal mail at 559 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.