You do not need to be a CEO or have an “Inc.” behind your name to help our economy grow. We need a broad middle class economic agenda.
Star Tribune April 10, 2012
In a Star Tribune commentary (“GOP offers its best ideas for jobs,” April 2), Minnesota House Speaker Kurt Zellers called for a focus on jobs and urged everyone to come forward with their “best ideas.” Unfortunately, just days later, Republicans spent hours pushing through another divisive constitutional amendment that will not create a single job for Minnesotans.
While such politics of distraction has come to define the GOP-led Legislature, it is not even the greatest indictment against the party’s leadership. The speaker’s list of “best ideas” to create jobs made clear that Republicans’ biggest shortcoming has been misplaced priorities that put rich corporate interests ahead of the vast majority of Minnesotans.
The GOP’s central jobs idea has been to “get out of the way” of big corporations and to count on their profits to eventually “trickle down” to jobs for the rest of us. The memories of the Great Recession — and the culture of deregulated banks, hedge funds and multinationals that caused it — should be too fresh for us to travel down this same failed path again.
You do not need to be a CEO or have an “Inc.” behind your name to help our economy grow. We need a broad economic agenda — one that recognizes that the strength of our economy hinges on both a vibrant business community and a strong middle class.
One key to future prosperity is matching Minnesotans’ job skills with a changing economy. The people of Minnesota who actually do the work are as worthy of legislative attention as are the corporate entities that employ them. DFLers have introduced a number of targeted proposals designed to bolster proven programs focused on retraining workers in high-demand fields.
For example, instead of forcing unemployed Minnesotans to stay at home while collecting unemployment benefits, our “Bridge to Work” program would allow them to earn transition benefits and get on-the-job training in a new career. Since this program would use existing unemployment benefits, it wouldn’t cost the state anything, but it would help create jobs today. Republicans said “no.”
A quality education and strong economy are intrinsically linked. But our investment in public education at all levels has slipped. Minnesota now ranks 47th in the nation in class size. The Republican shutdown-ending budget borrowed a record $2.7 billion from our schools.
Democrats have introduced a responsible plan to fully pay back this IOU to Minnesota students by closing corporate tax breaks for companies that hide earnings overseas. If we truly mean to put “kids first,” we should certainly be able to put them ahead of corporations. Republicans said “no.”
Our commitment to middle-class prosperity is also why legislative Democrats strongly opposed Republicans’ elimination of the homestead credit in the budget passed last year after the shutdown. The elimination of the credit caused skyrocketing residential property taxes across the state. We’ve advocated all session for restoring the credit for homeowners, seniors, farmers and small businesses — the folks who really drive our economy forward.
In contrast, the GOP has proposed a series of tax giveaways for corporations and has called them “jobs bills.” Business tax reform is something we should do, but not if it creates huge future deficits and imposes more burdens on middle-class Minnesotans. The Republican proposals fail on both counts. Their corporate tax giveaways eventually create a $1.6 billion hole in the state budget.
Further, 99 percent of the Republicans’ recent tax bill is directed at tax cuts for corporations, with next to nothing for Minnesota homeowners. Worse, Republicans pay for their “99 percent for business” tax bill by raising taxes on 300,000 Minnesota renters, seniors and people with disabilities who earn less than $55,000 per year. That is simply wrong.
Let’s put the private sector to work by investing in roads and bridges as well as in public buildings on college campuses and in communities across this state. We should pass a balanced and robust bonding package that will put people back to work right now and set the foundation for future economic growth. But again, Republicans keep dragging their feet.
The clock is running out on this session. With few accomplishments to speak of so far, legislators are in the middle of a 10-day break. During the break, I hope we all seek out our constituents’ “best ideas.”
I suspect we will hear very little about constitutional amendments and the need to give Wal-Mart and BP another tax break. If we truly listen to Minnesotans’ priorities, we can avoid another do-nothing session by putting the interests of middle-class Minnesotans ahead of rich corporate interests.
Spring is upon us and we are a short month and a half from the scheduled adjournment of the 2012 legislative session. I am disappointed to report the legislature has not made much progress on its most important work this year – getting people working again and building a strong, middle class economy. With six DFL jobs bills receiving committee hearings, I am hopeful that the second half of the legislative session will be more productive.
CONSTITUTIONAL AMENDMENTS CONTINUE TO BE REPUBLICANS’ FOCUS
There has been considerable attention to adding more constitutional amendments to the ballot in November. In the House, the voter ID constitutional amendment continues to move through the committee process. Last week, Governor Dayton and Secretary of State Mark Ritchie proposed an alternative to the amendment that would allow voters to arrive at their polling place and have their identify verified by retrieving their information electronically from state records. I hope the Republicans seize this bipartisan and commonsense alternative rather than proceeding with a constitutional amendment that will impinge on the voting rights of Minnesota citizens. The fact is that 215,000 registered Minnesota voters lack valid or current identification.
HELP FOR MINNESOTA HOMEOWNERS
I am also pleased to let you know that today, House Democrats will introduce the Supporting Responsible Homeowners and Stabilizing Neighborhoods Act, HF 2823, to address the continuing (and likely to grow in 2012) foreclosure problem in Minnesota. The Act includes the following provisions:
Supporting Responsible Homeowners
• Expand refinancing options for responsible homeowners who are current on their mortgages, but face barriers, such as being “underwater,” which prevents them from taking advantage of historically low interest rates.
• Prevent needless foreclosures by providing a 12-month stay of foreclosure proceedings for unemployed homeowners who have lived in their home for ten years.
• Increase transparency for homeowners applying for loan modifications by requiring banks to provide clear and straightforward eligibility criteria, and protect homeowners against unnecessary foreclosure, including right of appeal.
• Make “dual tracking” illegal so that banks are not allowed to foreclose on a house while a loan modification is pending.
Holding Banks Accountable
• Require banks to notify homeowners of each and every loan modification option available to them so that no one is needlessly foreclosed upon when another solution available.
• Prohibits lenders and brokers from charging fees for services not performed.
In February, the Minnesota Attorney General announced that the state will share in the national mortgage settlement that involves the five largest national mortgage lenders: Bank of America, JP Morgan Chase, Wells Fargo, Citibank, and GMAC/Ally Financial. Minnesota borrowers will be eligible for up to $280 million under the settlement, including monetary relief, refinancing benefits, and principal reductions. To learn more, call the Minnesota Attorney General’s Office at 651-296-3353 or 1-800-657-3787 or the Minnesota Department of Commerce at 651-296-2488 or 1-800-657-3602, or visit www.nationalmortgagesettlement.com.
BUDGET FORECAST AND PAYING OFF THE SCHOOL SHIFT
In other news, we learned that Minnesota’s budget has improved in the short term. The recent forecast shows an additional $323 million for the remainder of the biennium. The temporary surplus results largely from lower than expected spending on state health care programs as well as increased revenues from a slightly improved economy. The money is statutorily dedicated to our budget reserves and will allow us to make a minimum down payment on our debt to schools.
The fact remains, however, that we still owe our schools $2.4 billion. Our long term-deficit exceeds $4 billion due to excessive borrowing from Minnesota schools and the raiding of tobacco bonds; the short-term fixes the legislative majority relied upon to solve our budget deficit last year and end the government shutdown.
Despite this tenuous future economic outlook, Republicans this week proposed to continue this pattern of imprudent fiscal management. The K-12 Education Finance committee heard a bill that would drain our budget reserves and direct $430 million towards paying back the school shift. The Commissioner of Management and Budget indicated this would put Minnesota at risk for future borrowing and leave our state on unstable financial footing.
Democrats, in contrast, have proposed a permanent solution to paying back our schools by closing corporate tax loopholes for companies that park their money overseas to avoid taxes in Minnesota. When the choice comes down to protecting big corporations or fairly and responsibly paying back Minnesota schools, the answer seems obvious.
REDISTRICTING
Finally, the redistricting process concluded in mid-February with the courts releasing new maps of Congressional and Legislative districts. While I will continue to proudly represent district 63A, Richfield and south Minneapolis, through the end of the year, the new district I live in, 61B, includes south Minneapolis from Highway 62 north to Lake Street and the communities around Lake Harriet and Diamond Lake. I am deeply saddened that I will no longer have the opportunity to represent the residents of Richfield as I have for the past nine years. It has been a privilege and an honor to be your state representative. Go here to learn more about the redistricting process and use the interactive map to find the new district where you live: http://www.gis.leg.mn/html/redistricting.html
As always, please continue to be in contact about the issues that are important to you. I appreciate your visits, phone calls, letters, and e-mails. I can be reached by phone at 651-296-5375, by email at rep.paul.thissen@house.mn, or you can visit or send mail to my office, 267 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, Minnesota 55155.
Paul Thissen
State Representative
Minority Leader
District 63A
The 2012 legislative session begins this week. After last session, in which we had a government shutdown and focused on divisive constitutional amendments, it’s more important than ever we focus on the issues that matter most to Minnesotans. That’s why our top priority should be creating jobs and strengthening Minnesota’s middle class.
Last week, DFL legislators joined Gov. Mark Dayton in introducing a jobs plan to get Minnesota back to work. Our plan includes common-sense policies and proven initiatives designed to create jobs, support Minnesota’s small businesses, and keep Minnesota economically competitive into the future.
To help businesses grow and create jobs, we propose creating a New Jobs Tax Credit that would provide businesses $3,000 tax credits for every unemployed Minnesotan, veteran or recent graduate they hire in 2012 and $1,500 credits for each new hire through June 2013.
We also focus on ways to enhance Minnesota’s world-class, highly trained workforce. Our jobs plan would provide $2,000 opportunity grants to thousands of Minnesotans, providing a foundation for new, long-term careers in high-demand fields. In other states that offer similar grants, those who complete retraining have a significantly higher chance of getting rehired and also earning a higher wage.
The DFL jobs plan enhances proven initiatives that have helped attract new businesses to our state while helping existing Minnesota companies grow and expand. We propose putting an additional $10 million into the Minnesota Investment Fund, which has a long and successful track record. Last year, the fund helped SAGE Electrochromics, a high-tech glass manufacturer in Faribault, embark on a $100 million expansion that will create 160 jobs for a state investment of $500,000.
In addition to a relentless focus on jobs, DFL legislators will continue our fight to reverse the middle-class property tax increases that resulted from the Republican budget of last summer. The Republican’s elimination of the market-value homestead credit translated directly into residential and small business property tax increases across Minnesota, including substantial hikes of 7 percent or more in Duluth.
Our DFL focus on the middle class is not just election-year rhetoric. We fundamentally believe the single most-important way to revive our economy and set the stage for long-term prosperity is with a strong and vibrant middle class and with a state where middle-class families have basic economic security, realistic chances to get ahead, and enough money in their pockets to enjoy the great quality of life Minnesota has to offer.
That is why we are so disappointed the Republican majority has continued to pursue policies that squeeze the middle class in order to protect the very richest Minnesotans and special interests.
Leaders in both parties say jobs and the economy are the top priority. But actions speak louder than words. If the Republican majority is serious about jobs, I hope it will work with us on our common-sense jobs plan and on our effort to relieve the
middle-class squeeze it worsened through its policy decisions last year. I would hope Republicans set aside divisive constitutional amendments that have nothing to do with creating jobs. We have enough on our plate this session. Getting distracted by constitutional amendments is not a good use of our time while we are on the public dime.
Let’s put what is most important first this session — and work quickly to pass a jobs plan that will get Minnesota working again.
Rep. Paul Thissen, DFL-Minneapolis, represents Minnesota House District 63A and is the House Minority Leader. He wrote this exclusively for the News Tribune.
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