Letter to Editor: Governor's Budget March 27, 2013

Highway 14 Partnership Meets with Governor Dayton

Highway 14 Partners met with Governor Dayton and
MnDOT Commissioner Zelle to discuss
Highway 14's future and need for completion. 

On March 26, members of the U.S. Highway 14 Partnership met with Governor Mark Dayton and MnDOT Commissioner Charlie Zelle.

The meeting was organized by Owatonna Mayor Tom Kuntz and also included Mankato Mayor Eric Anderson, Nicollet Mayor Fred Froehlich, New Ulm Mayor/U.S. Highway 14 Partnership Vice-President Bob Beussman, Owatonna City Councilmember/U.S. Highway 14 Partnership President Les Abraham, Owatonna Area Chamber of Commerce and Tourism Marketing Director Katie Nelson, Beth Hodgman of West Concord, and U.S. Highway 14 Partnership lobbyist Amanda Duerr.

The Partnership emphasized the need to continue to make progress on completing Highway 14 in the 2013 Legislative Session. The group highlighted the highway’s significant safety concerns, as well as the need for a four lane corridor from Rochester to New Ulm to serve the region’s economic hubs.

The Partnership recognized the challenge facing transportation in Minnesota, with the level of needs outweighing the available resources. Along with providing safety and economic data on why Highway 14 must be considered a priority, the Partnership offered assistance in developing solutions.

--submitted from U.S. Highway Partnership Lobbyist Amanda Duerr.

City Council Notes: March 19, 2013

A part of the OACCT's Public Policy efforts for 2013 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

• Award given to Police Department for issuing traffic violations. (New light kit for top of squad car, valued at $3,000.00)
• Pubic  Hearings on road and street improvements. Numerous oppositions, but all approved for next round.
• Consent agenda – passed.
• Fire Department request for a Rapid Deployment Rescue Craft $9,300.00 - Approved
• Resolutions to approve  Business Development Infrastructure & Interfund Loan for Viracon, $2.8 million. Approved 
• Public Comments; George Osterhaus from Flooring Frenzy complained that he has had no assistance or  communication with anyone on his buildings damaged during the demo of the old State Theater. City officials will assist him with this.

Members Hit the Hill 3-13-13

Governor Mark Dayton addresses over 700 concerned business leaders from
around the state during MN Business Day at the Capitol.

Owatonna Chamber members joined a group of more than 700 businesses for Business Day at the Capitol on March 13th, which was organized by the Minnesota Chamber of Commerce.

Governor Mark Dayton spoke to the packed room of business representatives about his soon-to-be released revised budget that is still expected to  include a 4th tier income tax.  The new tier is only supposed to affect about 6% of filers, but equates to affecting about 20,000 job-creating businesses. The additional cost on these employers gives them less ability to compete nationally and internationally, less money to invest in their business and employees and increases costs to their customers.

It's the business community's perspective that the Governor's budget is within 2% of balancing and it should be able to find cuts to balance instead of raising taxes to cover the deficit. The overall message business wanted to share with the Governor is that spending should not outpace revenues.

Representative Petersburg visits w/ OACCT members
at his office during MN Business Day at the Capitol.

(R-L) Jim Gunderson, Jen Menzner and Rhonda Guthier visit
with Senator Jensen outside of a conference committee room about
her stance on raising minimum wage and the health insurance exchange. 

OACCT members also heard updates from the MN Chamber on issues like the health insurance exchange (that currently isn't allowing business to serve on the exchange board or grant the board "active purchasing" power), nurse staffing ratios (that strips providers of making business decisions and managing their operations), and a minimum wage bill (that exceeds the federal rate).

City Council Notes-March 5, 2013

A part of the OACCT's Public Policy efforts for 2013 is for volunteers from the Public Policy committee attend both City and County meetings and report back on items that are of interest/concern to business.

The Pool Together committee presented it's last report to Council. The remaining incoming pledge from a large company is expected in March.  The group was also able to raise over $50,000 in contingency funds for the pool's fund.

Due to a couple Council members being absent, hearings on improvement projects were held over for vote until the next Council meeting: 

1. Extend Improvement Hearing for Improvement #13001 – 12th Avenue NW Project.

2. Extended Improvement Hearing for Improvement #13002 – Lemond Road Project.  

3. Extended Improvement Hearing for Improvement #13006 – 2013 Sidewalk Project

Council also approved the bid for the new Law Enforcement Center (LEC).  Multiple bids were made available and bid packets picked up, but only one returned a bid.  $120,000 building bid was accepted.

Coffee with U.S. Chamber: Issue Updates

U.S. Chamber's Doug Loon shares a brief issue update
with OACCT members on immigration reform, healthcare
and the fiscal crisis. 

The OACCT hosted the U.S. Chamber this morning for federal issue updates.

Doug Loon, Vice President of Regional Affairs & Advocacy shared updates several key federal issues and an outlook for the nation’s economy, which is showing  growth for 2013 as well as energy prices are holding steady (from energy scarcity to abundance – creating the potential for long-term growth). However, economic uncertainty continues to be a drag on the economy - tax increases, regulator pressures and continued unemployment.

Loon also shared that the U.S. Chamber supports immigration reform in a four key areas: boarder control, work visa programs, employer verification and legalization.  Through these four areas the U.S. Chamber is building consensus for broad changes to the structure of the nation’s immigration laws.

On the healthcare front, the Chamber is asking legislators to repeal employer mandate and are concerned for individuals and small businesses that will be taking the brunt of the health insurance tax (HIT), which is a tax on insurance premiums to help pay for Obamacare.

Doug also touched on the fiscal cliff and outlined our current federal debt ($16 trillion--$11 trillion is held by the public and $5 trillion held by intergovernmental holdings) and illustrated in a chart how social security, Medicaid and Medicare comprises approximately 60% of the budget and growing each year.  The other 40% of the federal budget is facing broad cuts of $85 billion this year mostly from defense and other non-mandatory federal programs.  The concern over the debt is that it could lead to higher interest rates, weak dollar, inflation, less private investment, lower economic and job growth, and decline in our global competitiveness. 

Loon then went on to describe the Chamber's 'three bucket' approach to addressing our nation’s annual deficits and debt, which includes: entitlement reform, comprehensive tax reform and American energy (encourage smart development of resources both on and off shore and use federal and state lands for energy development).

Upcoming important fiscal cliff dates:

March 27th-appropriations bills: not a lot of reforms included; this will manage the 40% of budget (defense, non-defense, etc.)

May 19-projected date for next debt limit extension (next big fiscal cliff if not resolved before).

On a positive note, Loon outlined several positive economic indicators for the U.S. economy - the  U.S. is outperforming competitors, has a new energy boom, has growth in global markets, has a revival of U.S. manufacturing, the U.S. has a demographic edge and that many states are leading the way in building economies through good tax and regulatory policies and incubating business and job growth.

The second speaker, Ted Phlegar, U.S. Chamber's Senior Counselor with the Workforce Freedom Initiative, discussed labor laws, union challenges and equal representation for both sides of labor issues.

Phlegar spent time discussing the Department of Labor (DOL) and the National Mediation Board, but elaborated on the National Labor Relations Board (NLRB)'s approach to pursue an aggressive union organizing agenda rather than impartially enforce the current laws.  Ted outlined that the NRLB is a five member agency that is charged with conducting union elections, rulings and disputes. The board is technically operating without a quorum, so nominations to this board will be important.

Also, shared was current use of "work centers".  Work Centers don't have members, operate similar to a union in trying to change working conditions, but don't have to follow union laws. The U.S. Chamber believes these groups should be bound by the same set of union laws.

For more information on these topics, feel free to go to www.uschamber.com or contact Doug Loon at dloon@uschamber.com or tphelgar@uschamber.com

Rep. Hornstein Discusses his "Corridors of Commerce" Bill

House Committee Chair of Transportation Finance
Representative Hornstein visited with the
Highway 14 Partnership at a luncheon in Mankato. He is drafting
a "Corridors of Commerce" bill (scheduled for early April) that includes
a 5 cent gas tax to fund transportation projects, including Highway 14.

The Highway 14 Partnership met in Mankato today to hear Rep. Hornstein's "Corridors of Commerce" bill that he is planning for early April.

"I think it's high time we get this project completed," was Rep. Hornstein's opening comment to the group.

He believes the public will be open to a gas tax since they know where the funds will be used on specific projects (similar to the 2008 gas tax increase).