ST. PAUL – Today Republican Senators Julia Coleman and Senator Karin Housley stood with local businesses and the Stillwater School Superintendent to raise concerns about the Democrat proposal for Paid Leave, which was to be voted on later in the day.
“Paid time off to heal from childbirth and care of an ill loved one is absolutely critical, which is why Republicans have brought forth proposals to expand access to paid family leave benefits. The Democrats unpaid mandate, however, is the wrong approach,” Sen. Coleman said. “The costs of this program are not limited to the $3 billion tax hike on every worker and employer in the state, it’s through unfunded mandates to our local governments and school districts which will lead to higher property taxes, and through taxpayer-funded government growth make it more of an unpaid leave program. Worst of all, there is no promise that if you like your paid leave plan, you can keep it. Many Minnesotans with good benefits now will see them washed away and dumped into a state-run bureaucracy. Democrats are selling this as utopia and it’s going to be more of a nightmare.”
Business owners joined Sen. Coleman to share their concerns. Among them was Jodi Theis, owner of Paws Inn Essentials, a pet store Waconia. “Right now, we’re struggling to get employees, and then knowing the cost of training and getting people up to speed, could be up to $20,000 a year just by filling positions to be with us full and part-time. I’m here to ask things to slow down and put protections into place for small businesses,” Theis said
“We’re worried that government continues to get larger and larger, it’s harder to get things done in this state,” said Scott O’Brien, owner of both O’Brien’s Public House in Shakopee and a real estate development company that builds market-rate apartments and assisted living facilities across the state. O’Brien shared he is also member of the foundation board at St. Francis Regional medical centers in Shakopee and said the bill will hurt hospitals across the state. O’Brien said the legislature needs to find a “workable solution to provide this benefit for our employees, but not be forced to through a new government agency.”
Stillwater Schools Superintendent Dr. Mike Funk shared the impact SF 2 would have on the district’s budget. “I am supportive of paid family and medical leave” he said. “I’m also a veteran superintendent and quite aware of the second and third order effects of bills such as this one.” He said the known cost to the district was about $480,000 annually, with payment being split between the district’s funds and individual employees. He said the unknown cost was the cost to hire replacement staff, especially as districts are already struggling to fill positions. The district has about 1,000 employees and Funk said, “the financial impact of this bill could be very significant and leave us with less resources to compensate our employees fairly in other areas. Furthermore, with districts throughout the state already facing staffing shortages, we will be challenged to fill these potential long-term positions with quality replacements. The opportunity costs to our students with this mandate could be significant. I encourage the legislature to come together and come up with a better solution for paid leave,” Funk concluded.
“The Democrat proposal for paid family leave is a one-size-fits-all mandate that will shift the burden of cost down to every employee and taxpayer in Minnesota. The cost for this plan is currently estimated to be $3 billion, but it will cost Minnesotans much more,” Senator Eric Pratt said. “Senate Republicans agree that paid family leave will benefit families across the state. We’ve put forward a plan that focuses on providing businesses with the needed flexibility to implement a paid family leave program that suits their business and the needs of their employees. We should be working together to ensure small businesses and their employees are successful.”
“We have been trying to work with our colleagues to find a solution that won’t raise taxes, gives workers the security and flexibility they need, and doesn’t grow a new government bureaucracy,” Coleman said. “Unfortunately, there hasn’t been any compromise away from a mandated government program. It’s disappointing because we have a chance to make a positive difference for everyone, but this bill just won’t cut it.”
Coleman is the author of private paid leave plan bill that would give small businesses tax credits for offering paid family leave benefits. The plan received support from elected Democrats, Independents, and Republicans last year, but was not given another hearing this session.