Chamber has minimum wage, transportation on agenda

The Minnesota Chamber of Commerce will push for a rollback of automatic inflationary increases in the state's minimum wage.

Also among the statewide group's top priorities in the 2015 legislative session, are transportation, tax cuts and health care.

"We see a real problem with setting things on auto pilot," said Ben Gerber, who manages labor policy for the Chamber. "We elect legislators and hold elections to put people in office to make these tough decisions. And we think that, especially on an issue like the minimum wages, legislators should be making that decision."

Earlier this year, Gov. Mark Dayton signed a law that increased the $6.15 minimum wage to $8.00 this year, $9.00 in 2015 and $9.50 by 2016. Starting in 2018, the minimum wage will increase automatically based on inflation, unless a future administration determines it would damage the economy to allow the increase.

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Gerber said chamber members in rural communities have been particularly concerned with the wage changes. They say it will be a bigger financial burden for them than for businesses in the Twin Cities, Gerber said.

The inflation trigger was a sticking point between House and Senate DFLers as they hashed out their minimum wage bill earlier this year.

Meanwhile, the Chamber will also push for tax cuts, including a trim to the individual income tax, which the group argues hurts small businesses that pay taxes through individual income taxes.

The group agrees that transportation projects need new funding, too.

But where they diverge from Gov. Mark Dayton and DFL lawmakers in the Senate is on how they find the money. Dayton has proposed a wholesale gasoline tax increase, which some argue would offer a more stable funding source than regular appropriations.

But the Chamber says that approach isn't among its priorities. Instead, it would like to see funding come from savings at the state's Department of Transportation, general fund money and new user fees that would effectively require the people and businesses that benefit the most from road and transit projects to pay for them.

Some of these funding mechanisms may be a hard sell to DFL lawmakers in the Minnesota Senate. Already, Senate Majority Leader Tom Bakk of Cook says he doesn't see much room in the state's general fund surplus to pay for new transportation projects.