Governor's Budget Proposal

This afternoon, Governor Walz released documents outlining his budget proposals (we've highlighted key provisions), which includes $2.7B for the UI Trust Fund. As we have requested, the governor proposes using $2.7B in state funds to pay off the UI Trust Fund debt and replenish the fund, rather than drastically increasing payroll taxes. The proposal also includes direct payments to Minnesotans, and additional payments to frontline workers, which appears to include those in foodservice. (We will follow up with the administration on whether this can include other hospitality workers). 

There are tax cuts for workers with child care costs, which has become a workforce issue in recent years. There is also a proposal to expand the Dual Pipeline training program, which we would like to see expanded to hospitality. Finally, there is a proposed $170M investment in broadband, a long-term goal of our association. 

We are seeking more information from the administration on the details of the announcement, including the governor’s position on the tax status of RRF emergency funds, additional small business relief, and other workforce development solutions we’ve proposed. More to come.