The last couple of weeks the news cycle has seemed redundant and confusing. We have seen progression to open the state back up with an increase in testing and an abundance of ICU bed availability, yet the things that matter most to Minnesotans have remained unchanged. Today, my newsletter will cover information regarding Governor Walz’s extension of the Stay at Home order and the inconsistencies in the data he is presenting to justify these actions. First, I will start with some legislative updates from this week at the Capitol.

Legislative Action

On Thursday the Senate passed the COVID-19 Economic Recovery Tax Bill.

Some of the highlights are as follows:

• Extends the 2019 tax year filing and payment deadline to July 15, 2020, for S Corps, Partnerships and C Corps.
• Suspends the first two installments of tax year 2020 estimated tax payments by 3 months for each one.
• Temporarily suspends June accelerated sales tax payment to July 20,
• Extends May 15^th State General Property Tax payment to July 15, 2020.
• Provides for Full Section 179 Conformity retroactive to tax year 2018.
• Removes the sunset and continues funding for the Angel Investment Credit at $10 million per year.
• Provides for Charitable Gaming Tax Relief.
• Enhances property tax School Referendum Equalization beginning FY 2022.
• The Federal Paycheck Protection Program benefits to small businesses are exempt from state taxes.
• Plus, some property tax adjustments.

Additionally this week, Members of the GOP Senate and House sent a letter to Governor Walz asking him to allow elective surgeries to resume and healthcare workers to return to their jobs.

Now for bad news. 

Governor Walz extended the closure of our bars, restaurants and places of public accommodation though May 18^th.  Although this new Order does allow some retailers (businesses that sell, rent, maintain and repair goods) to open their stores for curbside sales, they still cannot allow walk-ins like the big box stores.  Look around you – the big box stores are open and their parking lots are full.  Our hardware stores, grocery stores, pharmacies, gas stations, bait shops, liquor stores, and more are also open, and their parking is full.  But our small retailers, barber shops, hair salons, pet groomers, etc. are forced to be closed.  This is completely wrong and unfair.  Minnesota rural economies are being decimated the most by these continual Executive Orders  (48 if you are Counting!).

Rural healthcare providers are also suffering with the Executive Order to stop all elective surgeries and procedures.  Some locations are seeing revenues down 80-90%. Not only are staff being laid off, but those with planned medical care are having their surgeries postponed. We are in jeopardy of losing some of these providers. Again, that would be devastating to our region.

There are numerous sources used by the Governor’s office and many others to predict what may happen.  This is commonly referred to as modeling.  Our healthcare providers and other sectors do their own modeling.  I have talked with some whose modeling shows that we are already past peak and others that push it out to June or July.  The modeling that the Governor relies on has shown for awhile that whether the stay-at-home and business closure Executive Orders were used or not the loss of life was the same as if just the long-term care facilities were protected.  The bottom line is that over 99% of the loss of life is happening to those with underlying health care issues and around 70% are in our long-term care facilities.  Every life is important, and we want to do everything we can to protect them, but the closure of our small businesses does not affect the end result.

Currently we must do everything possible to allow our small businesses to reopen.  In one week is the Minnesota Fishing Opener.  That is the first weekend of tourism business for our businesses.  And right after that will be Memorial Day weekend.  Our businesses must be open and ready for the start of the tourism season.

Churches, like our small businesses, can open back up to serve their members.  Someone may have to sit in the front row but most churches have plenty of room so everyone can feel comfortable.

Our local counties and cities have passed resolutions asking the governor to reopen the state.  The governor has not listened to them and continues to ignore the wishes of rural Minnesota.  A lawsuit was filed Wednesday by a group of businesses to get the state reopened and get our economy restarted.  They have filed claiming a violation of the 14^th Amendment to the U.S. Constitution.

From the mines in Northeast Minnesota to the Pork Processing Plants in Southern Minnesota, we must get everybody opened back up and get people working again.