There's very little good to say about the 2024 session, except for that it is over. It'd be nice if I could say I was happy to see important bonding projects like the Xcel Energy Center renovation design, Rice Creek Commons, or the Park at RiversEdge get funded, but no. None of that happened (in what was supposed to be a "bonding session").
What did happen over the past few weeks, and especially the final 24 hours of Session, was hyper-partisanship and a complete breakdown of legislative rules and process. Protracted floor debate with endless points of order. Moving bills from one conference committee to another and introducing all new provisions. A ten-hour recess on the final Saturday. Which cumulated Sunday night with piling nine bills into a conference committee report in the 11th hour and not having the 2,860-page bill available to members to read to know what was in it. And then using procedural motions to force votes on this gigantic piece of legislation. Obviously, members of the minority party were not happy and chaos erupted on the floor (of both House and Senate). Beyond the process, there were a lot of concerning items that ended up being passed in the waning minutes (and likely more to be found as we continue to sift through the gargantuan omnibus!) From the Extended Producer Responsibility (EPR) for product containers to extremely punitive measures for worker misclassification to "fixes" for the Paid Leave program passed in 2023. The Uber/Lyft issue also was resolved in a manner that should keep the rideshare companies in the state (which is good news for the state's economy), but the time and energy it took to make it happen definitely caused other items to fall by the wayside. While these next priorities were "stretch goals" in a non-budget year, I also was disappointed that this Session didn't yield the passage of a tax credit to convert vacant commercial buildings to support our downtown revitalization or a sustainable approach to funding emergency shelter operations. There is one thing I would specifically like to call out as a "positive outcome" in the 2024 Session. The Education Conference Committee Report included $3.4 million for Emergency Services Program grants (with support homeless shelter operations) for shelter providers either serving increased populations or facing program closure. These are the realties facing emergency shelter operations in Ramsey County, so these funds are very much needed, and also very appreciated by the providers, local governments, and business community who advocated for these resources. Rep. Dave Pinto of Saint Paul serves as Chair of the House Children and Families Committee. He carried this funding in his budget and deserves a lot of thanks for supporting his community and getting this across the finish line. We're also happy to see that Ramsey-Washington Recycling and Energy received funding for their anaerobic digester to support the counties' innovative food scraps recycling program. This process will both produce clean fuel and reduce waste in our landfills. We'll have to let these glimmers of positivity help us move past the "ick" of the Legislative Session. But, at least we can all be proud of the Timberwolves! See you in the trenches, B
0 Comments
I had intended to take this time to highlight Fed Chair Neel Kashkari’s new essay explaining his current views on our economy and interest rates. This is a follow-up to a February 2024 essay and the latest in a series he’s shared since 2022. Bottom line: Our economy continues to send mixed signals, making it difficult to assess whether our policy stance is tight enough to bring down inflation. Kashkari thinks it’s possible that the “new normal” neutral interest rate—that which neither stimulates nor slows the economy—may be higher than it was pre-pandemic. The housing market continues to show surprising strength as well, despite the significant tightening over the past two years. But I can’t ignore a few issues in the policy space that have me flummoxed. First is the need for the legislature to act to ensure Uber and Lyft don’t leave Minneapolis – and Minnesota. I’ll simply refer you to a good Star Tribune op ed written by Jonathan Weinhagen. “The Minnesota Legislature is set to adjourn in about a week. If it does so without repairing the damage inflicted on our region's businesses and reputation by the Minneapolis City Council pushing out Uber and Lyft, the negative impact will be dramatic.” Absolutely. Stunning to me that it seems to be going in the wrong direction. Second is the Extended Producer Responsibility (EPR) legislation, HF 3577 / SF 3561, which continues to move forward and is close to passing. This bill would:
Finally, the Labor Policy omnibus bill (SF 3852) would hurt small businesses by removing the small business minimum wage designation from state law and doubling the annual automatic minimum wage inflator from 2.5% to 5%. In this tight labor market, most employers are paying well above minimum wage. And that's how it should be - market forces or deliberate policy discussions should determine minimum wage levels, not arbitrary annual inflators. This bill will stress small business budgets by requiring significant annual increases and removing the small business designation. This will make it harder for businesses to grow, negatively affect employee benefits, and increase prices for consumers. CLICK HERE to ask your legislators to support small businesses by voting NO this bill! See you in the trenches, B Great news for Saint Paul, Union Depot, and the region overall – a second Amtrak train route is on its way! We’ve been talking about this for over 10 years - I remember first learning of this when I was at the Port Authority…. I am very excited about this project.
Amtrak will begin running the second train on May 21. The new train will depart Saint Paul midday, providing traveler flexibility on top of the current 8am eastbound train. These "Borealis" trains are sponsored by the States of Minnesota, Illinois, and Wisconsin. You can visit Amtrak.com to learn more about pricing, route, and passenger amenities. This announcement is welcome, at a time otherwise fraught with uncertainty as it relates to real estate, particularly downtown. We’ve got large tenants relocating, and the entire Madisen Equities portfolio is now on the market. I am ever the optimist: we have a real opportunity to be strategic in our response to the current environment. Saint Paul is an undervalued real estate market. I like the proposed idea of converting Class C commercial real estate into housing, and seeking an incentive from the legislature to facilitate the transition. I also like the idea of new property owners, interested in investing in their buildings, caring for their tenants, participating in the Downtown Improvement District to invest in improved safety and cleanliness. We have a transformational season before us. As I’ve said before, the downtown plays an outsized role in the region’s economy; both a second train and the opportunity to repurpose downtown real estate can only add value to a more stable regional economy moving forward. See you in the trenches, B This past Friday was the inaugural Small Business Summit and Expo, Presented by Wells Fargo, a collaborative effort between the MN Black, MN Hmong, and St. Paul Area Chambers.
What a powerful event it turned out to be! The event sold out with close to 300 people and 50 tabled vendors. We also invited a group of emerging entrepreneurs, thanks to Ramsey County’s sponsorship of this priority. I wandered through the vendor area, saw an amazing array of businesses (both large and small!), the volume high as the hall was full of people networking. Our lunch panelists were entrepreneurs who shared their own business stories, and the animated conversation was moderated by Tracey Williams-Dillard from the Minnesota Spokesman-Recorder - an entrepreneur in her own right. People didn’t want the panel to end! My message to everyone in the room, mixed up all together as we were: what we are doing together is extraordinary. Historic, even. Together we are building a stronger tomorrow. Today’s large businesses all started humbly, with an idea shared between just a few people. We are charged to do what we can to promote the innovation and entrepreneurial energy in that room and in this region. Thank you to everyone who suggested this event, took a chance on participating, and were moved enough to tell me how much the day meant. See you in the trenches, B This past week we co-hosted a compelling event with the Minnesota Chamber of Commerce on Environmental Permitting recommendations. The Minnesota Chamber Foundation has published research on this, and we invited Jennifer Byers, Executive Director of the Foundation, to speak. Compelling and convicting at the same time.
The study compares Minnesota’s permitting processes to those of peer states, outlines differences in outcomes, and provides recommendations for improvement (without lowering our state’s environmental standards!) I strongly recommend you read it yourself, particularly as there is legislation being considered this session that will impact this. If you remember, a favorite expression of former Governor Dayton’s: “permitting at the speed of commerce.” Once you read the report, you’ll find that is not happening in Minnesota. You can find “Streamlining Minnesota’s Environmental Permitting Process,” here. |
Archives
May 2024
|