Senator Dahms: Senate passes jobs policy bill but does not address labor shortage

On Monday, April 8, the Minnesota Senate passed the Jobs and Economic Development Policy bill. This legislation does not address Minnesota’s labor shortage or increase worker wages. Recent reporting indicates Minnesota still has 10,000 fewer jobs today than it did before the pandemic, lagging behind more than two-thirds of states.

“Our jobs agenda should be focused on fostering employment opportunities and cultivating robust economic growth,” said Senator Gary Dahms (R ‒ Redwood Falls). “We need to be passing policies that help businesses grow and expand Minnesotans’ access to high-paying job opportunities. Unfortunately, the Democrats’ jobs policy bill will not address these issues.”

Notably, the bill weakens several safeguards aimed at ensuring the appropriate use of taxpayer dollars. This includes the elimination of requirements for local government grant applications to provide detailed cost estimates, timelines, and commitments to repay if milestones are not met. The jobs policy omnibus also removes a 10% cap on administrative expenses for the State Dislocated Worker Program, risking further administrative bloat.

Senate Republicans offered several amendments, but the Senate Democrat majority rejected them. Some of those amendments included:

  • Requiring the Department of Employment and Economic Development (DEED) to work with Minnesota Management and Budget (MMB) to determine the effectiveness of new programs or grants of $500,000 or more.
  • Allowing small businesses to receive a tax credit for using Workforce Development Fund money to upskill current entry-level employees or provide training that leads to an increased salary or opportunities for career advancement with the employer.
  • Reinstating a 10% cap on administrative costs for grants to nonprofits.
  • Reinstating a requirement that DEED prioritize projects with the highest public benefit.

“It is my hope that this bill will come back from conference committee better than when it left the Senate,” Senator Dahms concluded.

Senator Dahms is in his fifth term representing Senate District 15 which includes communities in Blue Earth, Brown, Chippewa, Lac qui Parle, Lyon, Redwood, and Yellow Medicine counties. He also serves as the Republican Lead on the Senate Commerce and Consumer Protection Committee and is a member of the Agriculture, Broadband, and Rural Development Committee and Finance Committee.