SAINT PAUL, Minn. – Today, the Minnesota House passed the Workforce, Labor, and Economic Development supplemental budget bill on a vote of 98-35. The bill, authored by Rep. Dave Pinto (DFL – Saint Paul), co-chair of the House Jobs Committee, contains a variety of provisions relating to the Department of Labor and Industry and the Department of Employment and Economic Development. Most notably, the legislation would strengthen the state’s competitive grant programs within DEED.
The bill is also notable for what’s not in it, including Republican plans to weaken key labor protections, nor economic relief for businesses following the recent ICE surge.
“This budget bill makes modest but important investments to strengthen our state’s workforce by improving transparency and accountability around grants. I’m also proud that yet again, we’ve successfully blocked Republican attempts to target Paid Leave, Earned Sick & Safe Time, and other key wins DFLers have delivered for workers,” Rep. Pinto said. “I am disappointed however that Republicans refuse to acknowledge the real harm this winter’s ICE surge had on our communities, including on our economy. When there is a natural disaster, we step up to help communities recover. In this case, businesses and workers impacted through no fault of their own shouldn’t be forced to navigate the difficult journey on their own.”
One proposal would create an Office of Community Investment – modeled off of the Department of Public Safety’s Office of Justice Programs – to encourage more strategic grantmaking at DEED. Another proposal establishes a subcommittee within the Governor’s Workforce Development Board to review direct appropriations and provide recommendations to the Legislature on which organizations should receive funding, incorporating input from the communities those investments are intended to serve. These initiatives carry the lion’s share of new investments within the bill, including $400,000 from the general fund and $401,000 from the Workforce Development Fund.
The budget bill incorporates Rep. Pinto’s proposal to help tackle Minnesota’s health care workforce crisis by creating a new competitive grant program. Minnesota has a severe shortage of CNAs, physical therapists, dental hygienists, mental health counselors, and more. The bill specifically directs applications to be evaluated based on their potential for addressing workforce shortages in the health care sector that are unlikely to be solved through market forces.
As part of the budget bill, Republicans refused to accept any economic relief package to help businesses navigate the harm of Operation Metro Surge. Businesses, workers, and families faced economic challenges from the onset of the surge. The surge created widespread fear and trauma in Minnesota communities, leaving many residents worried about their safety, reluctant to leave their homes to go to work, school, or shopping, and many of them are concerned about how federal authorities might collect, use, and share their personal information. Northstar Policy Action found, based on conservative estimates, that the surge led to an $80 million weekly reduction in economic activity in Minnesota.
In a substantial victory for workers, the bill doesn’t contain any Republican proposals to roll back wins from the 2023-2024 biennium, including changes to paid family leave, earned sick & safe time, the nursing home workforce standards board, and a ban on noncompete agreements.
A nonpartisan research brief is available here and a spreadsheet of the bill’s appropriations is available here. Video of the House Floor session will be available from House Public Information Services.
Companion legislation in the Minnesota Senate currently awaits action from the Senate Finance Committee.