This Politicking is Unbelievable

Last week the Minnesota legislature blew a billion-dollar unemployment fund deadline. I sat down to write a letter to the editor in response, and still continue to struggle with my sense of disbelief. Here is what I said – and would say again today.  
 
"This politicking is unbelievable.
 
This week, since the Minnesota Legislature failed to make a deal to bring Minnesota’s Unemployment Trust Fund to solvency before the March 15 deadline, a $2.7 billion payroll tax increase went into effect for Minnesota employers.
 
The state has a $9.25 billion surplus, people. Resources are available.
 
The March 15 deadline (yes, this WAS the deadline) wasn’t a surprise.
 
Couldn’t get it done.
 
The governor committed to refunding the UI Fund by March 15. He included this as the first item in his supplemental budget proposal before the session started, and has maintained that “this needs to get done.” Almost a month ago the Senate approved a bill by an overwhelmingly bipartisan vote (55-11) to achieve just that. The House leadership – who, at the Minnesota Chamber’s Annual Session Priorities Dinner back in January, committed to a productive session absent the “politicking” – wants to make the refunding contingent on another completely separate priority.
 
The merits of supporting frontline workers are not being debated here. There is nonpartisan support for this priority as well. Workers are the only beneficiaries of unemployment benefits – businesses pay in, but they don’t get any money out of the fund. Thousands of laid off workers were able to pay rent and put food on the table during the pandemic because of unemployment benefits.
 
I’m talking about getting one good thing done at a time, as promised, and according to set deadlines.
 
It’s that simple.
 
This politicking is maddening. It’s this approach that deadlocks state government, angers constituents, and makes politicians look bad. Because this kind of gamesmanship continues.
 
Unbelievable.
The House politicked – on what should be a nonpartisan issue.
And the business owners and workers are paying the price."
 
See you in the trenches.
B

• ‘Stealth omicron’ cases on the rise in Minnesota. And public health officials are warning that the United States may see an increase in COVID-19 cases, similar to the latest wave that is taking place in Europe, and that vulnerable people may need another vaccine booster shot, as Moderna has proposed.
• Top Biden health adviser Anthony Fauci said the United States could see an increase in COVID-19 cases similar to what's taking place in the United Kingdom and that vulnerable people may need another vaccine booster shot as he and other officials pressed Congress for new funding. (Bloomberg) House Speaker Nancy Pelosi (D-Calif.) said the White House should request more than $40 billion in emergency COVID-19 money to pay for emerging needs, roughly twice the size of the Biden administration's initial ask. (The Hill).

• St. Paul launches $4.5M tourism recovery grant program: The city will give federal COVID-19 aid to tourism organizations that suffered financial hits during the pandemic. Businesses and nonprofits can apply for a grant. But there are stipulations and a March 28 deadline.
• On March 15, Greater MSP on behalf of our region submitted its proposal for the U.S. Economic Development Administration's Build Back Better Regional Challenge. Our bid was put together by a coalition of more than 60 partner organizations, organized by Greater MSP, and driven by a team of seven component-project leaders. This coalition initially came together in 2021 to compete against more than 500 other regions. After making the short list of 60 regions competing for EDA funding in December, the coalition then set out to assemble what we believe is one of the nation’s most competitive proposals. We will hear back from the EDA in April, and know by September if we are one of the 20-30 awarded regions. As part of this application, Greater MSP wrote a narrative document that makes the case for the Bold North BioInnovation Cluster.
• Mortgage rates rose above 4% for the first time in nearly three years, with the 30-year fixed-rate mortgage averaging 4.16 percent this week compared to 3.85 percent in the prior week. Sam Khater, chief economist for Freddie Mac, said that mortgage rates are likely to keep rising throughout the year after the Federal Reserve signaled additional interest rate increases. (CNN).
• Update from the Minneapolis Fed on inflation and monetary policy. I appreciate Neel Kashkari’s article here, which starts with acknowledgement: “When inflation accelerated last year, I argued that it was likely due to transitory factors which would soon pass. That hasn’t happened. This essay lays out the basic arguments I made then, the data that has come since, what I got wrong, and the potential implications for monetary policy going forward.” Included are updated predictions for inflation in 2022 (4.5%), and recognition of actual inflation for 2021 that was significantly higher than projected.

Federal:

• The Senate Judiciary Committee multiday confirmation hearing for Judge Ketanji Brown Jackson's nomination to the Supreme Court, began Monday at 11 a.m.

 
State:

• New plan for surplus includes bigger tax rebate checks: Gov. Tim Walz last Thursday called for spending more of the state's record-breaking projected budget surplus on public health, a financial boost for some retirees and bigger tax rebate checks for millions of Minnesotans.

 
Regional

• St. Paul to hire new police officers with federal grant: St. Paul Mayor Melvin Carter last Thursday announced that he will hire 80 new police officers in 2022, months after Chief Todd Axtell urged city leaders to bolster staffing in a department that he’s described as increasingly stretched thin.
• St. Paul budgets $635K for rent-control staff: St. Paul city officials on Wednesday unveiled a proposal that would provide five full-time employees and funding to administer the rent-control ordinance passed by voters in November. But as the policy's May 1 effective date looms, many uncertainties remain for St. Paul tenants and landlords.

 
Read more updates in our weekly Chamber Advocacy Update.

• DEED names Marc Majors as Deputy Commissioner for Workforce Development.
• Last week, International Women’s Day, celebrate #WomenInTech who #BreakTheBias! Here are stories of innovative women in the City of Saint Paul.  
• Events ahead for the St. Paul Area Chamber: Join us!
  • ​Transportation and Transit Update, Roseville Business Council, March 23
  • Cybersecurity in the Modern Age, Business Education Series, April 7
  • 2022 Equity Leadership Series, Session 2, April 20

• From the Fed: Amid labor shortages, child care shapes parents’ employment choices in the Ninth District. This as the child care industry faces increased pressures through the pandemic. And Itasca Project calls for solutions in new report.

• How occupational licensing limits access to jobs among workers of color. Nearly 1 in every 4 workers across the labor force has obtained a license, requiring substantial investments of time and money. And workers of color are much less likely to be licensed.
• Congratulations to Minnesota companies selected for the Most Ethical Companies list: 3M, Allianz Life, Best Buy, Ecolab, Thrivent, U.S. Bank, and Xcel Energy.  

• Minnesota sees an increase in construction projects during the pandemic.
• Hillcrest Golf Course is now 'the Heights': The new name for the 112-acre site was selected by a team of East Side residents who reviewed dozens of suggestions submitted online, the St. Paul Port Authority announced last Tuesday. Apart from the name, here's the latest on what the neighborhood could expect in the new space. Here’s a fun video.
• Two months into the year, sellers remain in control of Twin Cities housing market: In Feb, sellers listed 4,427 properties, 7.3% fewer than the same time last year, according to a monthly report from the Minneapolis Area Realtors and St. Paul Area Association of Realtors.