Minnesota Chamber pushing for action in anticipated special session

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

Let me acknowledge an important reality: Minnesota is falling behind economically. Two recent reports from the Minnesota Chamber Foundation provide data showing that we are not reaching our full economic potential. The first is our Business Retention and Expansion report, produced in partnership with our Grow Minnesota! ® program, and the second is our new report on productivity and innovation.

How does Minnesota measure up to other states on productivity goals? These reports outline serious economic challenges. Today, Minnesota ranks 41st in total economic output. We are lagging the nation in GDP growth – the national average is 2.4%, while Minnesota sits at 1.7%. This gap has widened over the past decade. Yes, slow population growth contributes to sluggish workforce growth, but we also face state policy headwinds that constrain growth and limit our economic potential.

Minnesota’s uncompetitive tax and regulatory systems create added costs and compound uncertainty for businesses. That has resulted in slower investment in our state and declining productivity.

Don’t just take my word for it. Star Tribune business columnist Evan Ramstad recently called on elected officials to recognize that our economic decline could cause long-term challenges for our state’s performance and outlook. Now is the time for the Legislature and Governor to finalize the budget and set Minnesota on the right path. We need action to improve our economic position – and time is of the essence.

That means passing bills this year that create meaningful change. We are calling on elected officials to ensure tax strategies that attract new investment, treat existing businesses fairly and enable economic development projects to be built in Minnesota rather than elsewhere.

We also need bipartisan permitting reform to pass in the special session and be sent to the governor’s desk. These reforms are based on recommendations from last year’s Chamber Foundation permitting study – and many are included in the bipartisan package advancing through the Legislature.

We also urge lawmakers to revisit the paid leave mandates passed in 2023, to better allow businesses – large and small – to design benefits that fit their workforce and employees’ needs.

These are critical changes. There’s still time to get them done, but it will take all of us. Now is the moment to contact your legislators, even if they already support us or you’re not sure where they stand. Remind them of how important a growing economy is to meeting both public and private sector goals.

Now’s the time to act. Thank you for your support and for standing up for business, your communities and your employees. We appreciate your help and thank you for being a member of the Minnesota Chamber of Commerce.  

I look forward to catching up with you on next week’s episode of the Minnesota Business Podcast.