Join   |   Contact Us   |   Sign In
Community Search
Legislative Updates
Blog Home All Blogs
Search all posts for:   

 

View all (38) posts »
 

Legislative Update: May 11, 2018

Posted By Administration, Monday, May 14, 2018
We are heading into the final week of the Legislative Session. There is a considerable amount of work that needs to be accomplished in a very short period of time. The House and Senate have both approved Omnibus Appropriations bills which include virtually all of the State Agency accounts. We are specifically watching the Department of Employment and Economic Development provisions which represent a very modest portion of the overall Supplemental Budget.  

Our biggest concern with the DEED provisions is the “earmarking” of funds from the Minnesota Investment Fund and Job Creation Fund. Both the House and Senate Bills earmark funds for specific projects, but the House does so more aggressively – leaving very limited resources available to respond to projects which come forward for funding in FY 2019.

We are also watching the Tax Bill. The Senate and House Conferees are working to assemble a bill that they hope will secure the Governor’s signature. At this point, it is hard to say whether they will accomplish this objective. There are very significant differences on the tax maters between Governor Dayton and Republican Legislative Leaders.  

One provision of significant interest to the economic development community is the inclusion of funding for the Angel Tax Credit Program. This is the program that provides 25% credit to investors who put money into start-up companies focused on high technology, new proprietary technology or new proprietary processes or services.  

The Senate Bill includes an additional $5 million to continue the Angel Tax Credit Program. The House included $10 million for the same purpose. The difference in the funding level will be addressed in the final Conference Committee Report.

The House and Senate are also working on their respective Bonding Bills. The House Bonding Bill has cleared Committee and is awaiting action on the House Floor. The Senate Bill has been marked-up by the Capital Investment Committee and awaits action in the Senate Finance Committee. Both bills need to be acted upon next week. The challenge they face is that both the House and the Senate established a general obligation bonds ceiling of $825 million which is considerably below the state’s debt capacity and approximately one-half the level recommended by Governor Dayton.  

Both the House and Senate Bills leave out a number of important projects and may struggle to secure the 60% Super Majority required to pass bonding provisions.

Of particular interest to economic development professionals are the Greater Minnesota Business Infrastructure Program – which the Senate includes in its bill at $8 million. Also of interest is the Transportation Economic Development Infrastructure Program (TEDI) at $4 million. One million dollars is included in the Senate Bill for the Innovative Development Infrastructure Program (IBDPI).  

We will continue working on these issues in this final busy week of the Session. Our next report may be the very conclusion of the Session since it will likely be difficult to know precisely where things land until the Legislature adjourns.  

If you have any questions regarding our reports, please feel free to contact the Fryberger office at (651) 221-1044 or send an email to kwalli@fryberger.com, srichie@fryberger.com or dtomassoni@fryberger.com.  

This post has not been tagged.

Share |
Permalink | Comments (0)
 
Membership Management Software Powered by YourMembership  ::  Legal