Downey Proposes Plan to Restructure State Government Workforce
Offers Early Retirement Program as One of Several Tools
ST. PAUL– State Rep. Keith Downey (R – Edina) introduced a plan to restructure the state government workforce, reducing the size and cost 15% by 2015. “This proposal is about more than balancing the budget. It is about balancing government,” said Downey.
The announcement follows last month’s introduction of GOP government reform initiatives and the news of Minnesota’s continuing budget deficits. The bill, a companion to the Sunset and Innovation commissions, authorizes furloughs, layoffs, wage freezes, pension benefit restructuring and an early retirement option to achieve the 15% goal.
“This bill brings short-term savings, long-term cost reduction and lasting structural change to Minnesota government. It offers several tools to achieve the difficult but necessary task of reducing the state government workforce,” said Downey.
Prior to implementing the early retirement program, the bill requires an actuarial analysis to determine the number of retirees and the amount of savings to be returned to the pension to cover the cost of the program. The legislation also requires a hard hiring freeze to solidify the workforce reduction and maximize the savings impact.
“The early retirement option offers a fair alternative to cuts and layoffs, doing so in a way that seeks to balance the cost to the pension fund while continuing the discussion of pension reform,” said Downey.
With continued deficit projections, Downey emphasized the need to reform the structure of Minnesota government for reduced costs and improved efficiency. “The state government nickel-and-dimed itself into these budget problems, and now we have to nickel-and-dime our way out,” said Downey. “There is no single cut. Instead, we need to undertake a wide range of reforms to make Minnesota government leaner, more efficient and more cost-effective,” said Downey.
-##-
March 3, 2010
Downey Announces Pro-Growth Jobs Proposals
ST. PAUL– State Rep. Keith Downey (R – Edina) announced several efforts to improve Minnesota’s business climate and economy.
Downey will be the chief author for Governor Pawlenty’s Tax bill in the House, which provides powerful tools to the free market and to job providers working to expand and grow.
“This session, as we look for Minnesota's economy to get back on track, it will be critical to undertake the reforms that will empower our job providers in the 21st century economy,” said Downey. The Tax Bill includes:
* 20% reduction in the corporate income tax rate
* 20% tax reduction for small businesses
* 80% tax credit for companies investing in small business
* $10 million in angel investor incentives
* Capital gains exclusion for investments in Minnesota small businesses
* 5% tax credit for research and development
Downey also joined Small Business co-chairs Rep. Denise Dittrich (DFL – Champlin) and Rep. Maria Ruud (DFL – Minnetonka) in announcing the Caucus’ slate of bipartisan legislation to address the specific needs and concerns of small businesses in Minnesota. The Small Business Caucus is proposing a package of bills to:
* Streamline Minnesota Pollution Control Agency (PCA) regulations
* Support the Angel Investor Tax Credit bill
* Expand the Research and Development Credit
* Evaluate the effectiveness of the various state grant and loan resources to Minnesota’s small businesses
* Encourage the deposit of state funds into local and community banks
* Create a Fast-track small business registration process
* Create a study comparing the challenges of business start-up in Minnesota to neighboring states
"Our Small Business Caucus has worked hard to bridge the gap between economic reality and the perceptions of many lawmakers. I'm very pleased we have agreement to pursue these bills this session," said Downey. "Passing the Governor’s Job Creation Bill and the proposals of the Small Business Caucus will be a step in the right direction, and a positive signal to the business community."
Representative Downey continues to encourage constituents to contact him with feedback and ideas for leading Minnesota along the road of economic recovery.
-##-
Keith Downey represents district 41A which includes the city of Edina
To receive email updates...
Enter your e-mail address below and click "Process Request".
“Keith Downey is exactly what we need in St. Paul to advance our state.”
