2012-02-10    HOUSE BILL PREVENTS STATE FUNDS FROM PAYING UNION DUES

Should state government get involved in the way your daycare provider helps raise your kids?

Since Governor Dayton signed an Executive Order calling for an election to determine whether private in-home child care providers should unionize, the question isn’t all that far-fetched.

What’s wrong with letting all the daycare providers have their say, you ask?  Nothing, except that the Governor’s order purposely prohibits more than 60 percent of providers statewide from casting a ballot.  

Of the 11,000 providers across the state, Governor Dayton limited this election to the 4,287 licensed in-home child care providers who currently receive state subsidies.  In other words, 7,000 of them would be banned from having a say on a choice that will affect their business and livelihood.

It’s worth noting that a temporary restraining order was issued against Governor Dayton’s daycare unionization executive order in January, so the final outcome of this potential election remains up in the air.  Because this issue remains undecided, the Legislature feels it’s important to protect in-home day care providers who oppose unionization from potentially being forced into it.

On Thursday, the Minnesota House approved a bill preventing state deductions from child care assistance payments.  Without it, it daycare providers who receive state subsidies could be forced into unionization without their consent as union dues could be deducted automatically if any future election is successful.

I’ve heard from many daycare providers on this topic, and they’re not happy.  They want the freedom to run their business like they always have.  They don’t want Governor Dayton or some union boss deciding how the provider should maintain their facility, and they don’t want government adding even more paperwork and red tape to their day to day operation.  Parents are equally concerned, wondering if unionization will force them into higher daycare rates.

This bill won’t stop a daycare unionization election from taking place, but it does ensure that any provider who opposes it – or doesn’t even get to vote on an issue that directly affects their livelihood – will not have union dues automatically deducted at the state level before their paycheck arrives.

Undoubtedly, job providers across Minnesota breathed a huge sigh of relief when they learned that lawmakers would not raise taxes to solve the budget deficit last session, and would instead focus on reforming government and improving the business climate in Minnesota.

By showing job creators that the new Republican-led legislature was going to lead by using common sense, unemployment rates are dropping, and more Minnesotans are headed back to work.

Let’s connect the dots.  According to statistics provided by Minnesota’s Department of Employment and Economic Development (DEED), Minnesota had an unemployment rate of 7.5% in January, 2011.  It also had a $5 billion budget deficit to eliminate. 

One year later, after enacting countless reforms that are saving billions of dollars and refusing to raise taxes, these numbers are improving significantly.

On January 19, DEED announced that Minnesota’s unemployment rate is now 5.7%, which is especially impressive when compared to the national unemployment average of 8.5%.  Economic officials also projected that Minnesota also has a nearly $1 billion surplus.

The last time the unemployment rate was this low was December, 2008.

70,000 more people are working now when compared to one year ago.

I don’t think this is a coincidence.

Our economy is driven by tax collections, paid for by job providers, everyday workers, and consumers.  As you know, Minnesota is not known as a bastion of tax freedom.  Our state ranks 43rd in business tax climate, and our corporate tax index comes in at 44^th.   Minnesota’s workers face the 8^th highest tax burden in the nation.

Job providers aren’t scrambling to relocate in Minnesota because of our tax friendliness.  In fact, they often do the opposite. 

Business owners want clarity from their state government, and can’t afford to sit around wondering what taxes may be raised and what cumbersome new regulations may be passed into law.  And make no mistake, when business owners get a tax increase, we all end up paying the price.  As the Minnesota Tax Incidence Study explains, business taxes are "partially shifted onto consumers through higher prices or in some cases to labor in lower wages."

Last year, we gave Minnesota’s job providers that clarity, and we’ll do it again this year through our continued reform efforts.

Most business owners tell me they’re overtaxed and overregulated.  They are tired of dealing with unnecessary regulations that hinder their ability to conduct business.  That’s why the Legislature aims to pass legislation this year creating a Small Business Regulatory Review Board, in order to identify and eliminate duplicative mandates.

In addition, the Legislature will seek to direct property tax relief to job creators in this state, rather than raising their taxes.  We would also like to continue our investment in business programs that spur research and development.

In short, our goal is to change the business climate in this state.  And we realize increasing taxes will only destroy this effort.

Governor Dayton is to be commended for his willingness to join legislative leadership in reforming government last year.  These decisions led to our current budget surplus and improved unemployment rates. If he maintains this commitment to reform in 2012, I’m confident Minnesota’s economy will continue to improve, and the number of job opportunities in this state will continue to increase.