Minnesota's unemployment rate stands at an impressive 3.7% percent. Unfortunately, far too many Minnesota families aren't feeling the effects of the improving economy we've seen on paper over the last several months. The unemployment rate is down, the state's budget situation is improving but wage growth has remained stagnant and the underemployment rate remains stubbornly high.
I'm proud to be a member of the new House Republican Majority that is geared toward problem solving. Too often legislators come to the Capitol with ideas that are solutions in search of problems.
We want to take a different approach. House Republicans want to first identify problems facing Minnesota families, businesses, and state government, then formulate real solutions that will help solve those problems.
We identified a lack of good-paying jobs, and fledgling workforce development in parts of the state as long-term problems that aren't being addressed as the unemployment rate falls. Wage growth is stagnant, and in many parts of the state it's becoming increasingly difficult to find skilled workers whose qualifications match the job openings that exist.
So what can we do as legislators to help address these problems? That's where my bill, House File 1 comes in. House File 1 (HF1) is the start of a conversation about how we can help grow better-paying jobs, and address the workforce development challenges in Greater Minnesota and across the state.
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HF1 boosts workforce development by offering refundable income tax credits to students who receive a degree in STEM (Science, Technology, Engineering, Math) or long-term care fields in parts of the state where qualified workers are badly needed. It also makes permanent a pilot grant program that encourages cities to construct workforce rental housing where there is a demonstrated need.
Our neighbors to the north in Thief River Falls have been a prime example where the number of available jobs at companies like DigiKey outpaces the amount of available workforce housing.
Creating tax credits for students who pursue careers in long-term care will be part of helping the severe shortage of skilled workers in long-term care professions who help care for our aging adults and the disabled. We want to protect the quality of life for our aging adults as the baby boomer generation begins to enter retirement, and attracting and keeping long-term care professionals, especially in greater Minnesota, will help immensely.
One of the other main components in HF1 is the creation of a New Market Tax Credit, a brand new initiative that will help create better-paying jobs in manufacturing, high-tech, mining, and timber. We should welcome investments in these sectors with open arms here in Minnesota. Unfortunately, our high tax climate oftentimes can discourage investors, who instead look to surrounding states.
These are industries that create good-paying jobs in parts of the state that need it most. This will help the pockets of greater Minnesota where the unemployment rate surpasses the state and even federal rate, and boost worker pay in the process.
Minnesotans want jobs that put food on the table and can support families for years to come. That's something I hear over and over again as I talk to Minnesotans across the state. This jobs bill is a starting point, and I believe will be a boost to Minnesota. I welcome your input, and look forward to improving on this bill as session continues with input from my colleagues, the governor, agencies and the public.
Rep. Ron Kresha, R-Little Falls, represents Minnesota House District 9B
