State Chamber president talks about issues before session ends

David Olson, Minnesota Chamber president, recently went through a priority-setting process with the local chamber board at a retreat, met with Boise officials, and sat down with The Journal to discuss the issues that the business community is facing.

Olson said the Chamber did not change its position on issues after November’s election saw a party reversal in the legislative majority and the governor’s office.

“For the 20 years I’ve been at the chamber, it’s always been ‘what are the needs of the business community?’ and we bring it there regardless of who’s governor and who’s in charge of either body,” he said. “Did our legislative strategy change a little bit? Absolutely.”

Olson said one of the biggest changes this year has been that with the new Republican majority in the House and Senate, the Chamber has found itself supporting the large majority of the proposals which have been made in those bodies.

“Two or three years ago, we’d put a bill number and an author and say ‘We oppose.’ And if you look at yesterday’s (chamber legislative update newsletter), ‘We support, we support, we support.’”

Olson said he will take back to St. Paul a list of issues presented to him by leaders at Boise Inc. as well as conversations on education and the border crossing he had with local business leaders.

“I think the chamber, particularly this year, has a large impact on what happens (at the Legislature),” Olson said. The Chamber has six full-time lobbyists working from open to close at the Capitol.

Olson had six specific topics to discuss with the Falls business community: the state budget, local government aid, environmental permitting, energy, education and transportation.

Money matters

Olson said he wanted to clarify the state chamber’s position on local government aid, or LGA.

“That has been an interesting one for us because we believe LGA needs to be restructured and probably, my guess is, over time at least, either the formula needs to be redone or the dollars will be reduced or both.”

But, he said, completely demolishing the program has not been the Chamber’s platform. Olson asked for a review of the process to ensure that the figures were based on current information. He noted that Borderland governments have been wise to not count on an increase in LGA in the near future.

Regarding budget discussions, with 13 days left in the session Tuesday, Olson said he did not see how the Legislature could avoid a special session.

One of the reasons for the $5.1 billion state budget shortfall, Olson said, was that programs had been started in the state using federal money and can’t continue without that assistance.

“We’ve said if Minnesotans and Minnesota companies generate $34 billion a year for the next biennium, then that’s probably what we ought to spend,” Olson said. “That’s what you do in business, that’s what you do in your house.

“But that debate will rage for a good chunk of the summer. I hope I’m wrong on that.”

Collaboration among local government entities will be necessary as all levels of government look to cut spending, he said.

“The city, the county, the school district — can they work together and streamline some things?” he said. “The threat of those cuts is forcing different levels of government to talk about, ‘How do we work together, how do we continue to provide services but maybe do it in a more efficient and effective manner?’”

Environmental permitting

Olson said the Chamber pushed to get environmental permitting legislation passed in March to make the process more consistent and quicker.

“We’ve had companies wait for years for what we would consider a pretty standard permit and that just sends the wrong message to companies that want to relocate and grow here.”

Olson said a “round two” on environmental permitting regulations will be forthcoming.

Energy

He also noted that the availability of competitively priced energy resources will be important to local businesses, especially Boise. The local mill, he noted, saw double-digit increases in its electricity costs last year. “That obviously is going to drive up the price of paper and has a real impact,” he said.

And while he said he feels the state is a leader in renewable energy, he feels the need to maintain a stable, competitively priced energy source for businesses to succeed.

Olson was jointed in his visit with Bob Anderson, Boise public affairs manager and local chamber board chair, who agreed with the Chamber president’s views on energy.

Education

The Chamber has promoted alternative teacher certification as a way to increase the results coming from K-12 education. Olson called this one of the Chambers “wins” as new regulations were signed into law by the governor in March.

The next step in education, he said about Chamber lobbying, is to change the last-in, first-out mentality as it relates to hiring and firing teachers. He noted that the tenure debate could become heated at the Capitol, but said he is optimistic that Gov. Mark Dayton will support the measure if it reaches his desk.

Transportation

The Minnesota Department of Transportation is putting together a task force to look at long-term funding of roads and bridges depending on the future of the gas tax.

The Chamber has asked Anderson to represent them on that task force. “We wanted somebody not only from greater Minnesota who understands that sometimes the drives are a little longer from here than they might be in other places, but who has also been actively involved with us, chaired our transportation committee, understands the issues.”

Local issues

Local business leaders brought three concerns to Olson’s attention Monday: the international border crossing, employment and education.

“I think there are some concerns about the border, and what that has done to tourism,” Olson said. He said a “dramatic” drop to border crossings has had an effect on retail, lodging and other tourism-related businesses.

Another topic of conversation was ensuring that the area’s largest employer, Boise Inc., continues to do well into the future. Without the Boise mill and its employees, other area businesses would likely struggle.

“Folks want to make sure Boise continues to do well,” he said. “I think if people are honest, as Boise goes, so goes International Falls. Some people don’t like to think about that, but I think that’s a reality.”

Olson said that to the end of attracting and maintaining a variety of businesses in the area, he said maintaining transportation networks and education systems are important to the future of the area.

Olson also said he will take back to the Capitol the positive collaboration that the Falls School District and Rainy River Community College have together. Concerns about a well-educated, available workforce are of statewide interest, he said.

“We’re nervous that as our population declines not only in International Falls but across the state, declines in ages, are we going to have the workforce we need assuming the economy gets rolling. Are we going to have the workforce we need to keep the economy rolling, actually.”

“I think they were worried about a lot of the right issues,” he said. The issues he feels are most important to this area are economic development, public policy, tourism and retail. “I think that will bode well for the business community and International Falls as well.”