Small Business Voice E-newsletter

May 2007

We want your direction
Small businesses represent more than 80 percent of the Minnesota Chamber of Commerce membership. The Small Business Policy Committee reviews and comments on every policy of the Minnesota Chamber.

The Small Business Policy Committee is identifying its priorities for the 2007-2008 program year. Select the top three concerns facing your business. If you have a priority that is not listed, or if you have specific comments on any issue, please write these in the “comment” section. You also may contact Stacia Smith, our manager of small business policy, directly at (651) 292-4692 or ssmith@mnchamber.com.

2007 Legislature: Protecting your bottom line
The dramatic change in the legislative landscape demanded that the Minnesota Chamber play more defense than offense on issues important to the statewide business community. We blocked several measures of particular significance to small business owners. Among them:

Health care: Minnesota already leads the nation in terms of services that insurance companies or health plans are required to cover, and lawmakers proposed even more this session. As a result of our efforts, nearly all were blocked – thus saving your company from even higher increases in premium costs. These mandates apply solely to the fully insured market which represents only 27 percent of the market and is getting smaller. This group is made up of mainly small and medium size business.

Taxes: The Minnesota Chamber largely prevailed in its message that state government live within its means. We blocked attempts to increase the statewide property tax which falls predominantly on commercial/industrial businesses. And we blocked an effort to create a fourth bracket in personal income taxes which would have been a significant hit on owners who run their business income through their personal income tax returns.

Transportation: We remain frustrated in our efforts to bring incremental – yet substantive and balanced progress – to long-term transportation funding. We had hoped to take another important step this session, but our efforts were derailed by those who sought an “all or nothing” approach. Among our concerns with the final bill – which was vetoed by the governor - was a local half-cent sales tax. Metro counties were authorized to enact the sales tax without voter approval; Greater Minnesota counties could enact the tax only via a voter referendum. The sales tax, at its core, is a business tax. Businesses pay 45 percent of the sales tax.

Minimum wage: The Minnesota Chamber was successful in lobbying against a proposed increase in the minimum wage. For small employers – defined as those with less than $625,000 in annual sales – the wage would have increased from $5.25 per hour to $5.75 upon passage and then to $6.75 effective August 1, 2008. The rate would be indexed to inflation annually. We maintain that the minimum wage should be consistent with the federal level. Raising the state’s level could place businesses at a competitive disadvantage with businesses located in other states.

In that regard, legislation was just signed into law that will raise the federal minimum wage; effective date will likely be in late July. The current rate is $5.15 per hour. It will be raised in three steps: summer 2007 - $5.85; summer 2008 - $6.55; summer 2009 - $7.25.

Increase employee wellness; manage health care costs
All employers, and especially owners of small businesses, are increasingly burdened by the rising cost of health care. Engaging employees in managing their health is an important piece to managing cost. Learn how businesses can be a partner in promoting employee wellness by attending “Growing a Healthy Organization through Employee Wellness.” The Minnesota Chamber seminar is scheduled for 8:00 a.m. to 3:00 p.m. June 19 at the Schwan Center, National Sports Center, 1700 105th Avenue N.E., Blaine.

Attend this full-day seminar to learn about current trends in employer wellness programs, the legality of setting up a program, and what is available to employers through their health care providers. For information, visit www.mnchamber.com or contact Mary Bethke at (651) 292-4672 or (800) 821-2230 or mbethke@mnchamber.com.

Enhance trade with Canada
Minnesota and Canada enjoy robust trade. In fact, Minnesota exports more goods to its northern neighbor than to its next three export destinations. Here’s an opportunity to explore trade issues firsthand with The Honourable Michael Wilson, Canadian Ambassador to the United States.

Wilson will speak at a luncheon June 13 at the Minneapolis Club. Registration is at 11:30 a.m., followed by the program from noon to 1:30 p.m. The Minnesota Chamber is co-sponsoring the event along with the Minnesota International Center and the Consulate General of Canada.

Cost is $30. To register, call the Minnesota International Center at (612) 625-4421 or go online at www.micglobe.org

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