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At a recent campaign rally in Milwaukee, Wisconsin, U.S. Vice President and Democratic presidential contender Kamala Harris, along with her running mate Minnesota Governor Tim Walz, signaled their economic vision for the nation. Minnesotans suggest that a closer look at state policies reveals the groundwork for their approach.
According to Minnesota AFL-CIO President Bernie Burnham, the proposals from the Harris-Walz ticket mirror the progressive changes taking root in Minnesota. Under Governor Walz’s leadership, the state has seen significant advancements, including expanded union protections, over $1 billion allocated for housing initiatives, a universal paid family and medical leave program, and funding for free school lunches, along with increased corporate taxes.
Collectively, these achievements position Minnesota as a testing ground for progressive policies that have encountered obstacles at the federal level. With Walz as Harris’s running mate, the duo is drawing nationwide attention to the Minnesota agenda.
Strategist Amy Koch, a former Minnesota state senator, noted, “It’s a roadmap for sure,” as several economic priorities proposed by Harris closely align with initiatives that Walz advocated during his governorship.
Among Harris’s proposals are codifying stronger worker protections, constructing three million new homes, offering a $25,000 subsidy for eligible first-time homebuyers, and fortifying tax credits such as the Child Tax Credit and Earned Income Tax Credit. Additionally, she supports raising corporate taxes.
Interestingly, Harris’s messaging has shifted, stepping back from the more aggressive rhetoric concerning corporate greed that characterized President Biden’s addresses, leading some business leaders to speculate she might provide them with a more favorable environment should she ascend to the presidency.
However, if her policies mirror those of Walz’s Minnesota administration, such expectations may not align with reality.
Swift Legislative Moves
This swift progress was facilitated by unique circumstances that favored the Democratic party. Following his reelection in November 2022, Walz’s party, the Democratic-Farmer-Labor party (DFL), secured a governing trifecta with tenuous margins—just one seat in the Senate and a six-seat majority in the House.
DFL former state senator Jeff Hayden expressed surprise at this outcome, reflecting on the initial uncertainties the party faced. Shortly thereafter, the Minnesota management and budget office unveiled a $17.6 billion budget surplus, marking the largest in the state’s history— a result of robust tax revenues and restrained spending.
The DFL understood the importance of acting quickly to implement their agenda, cognizant of their precarious standing. Although Minnesota traditionally leans Democratic in national elections, the state exhibits a more divided political landscape at the local level. The last time Democrats held both legislative chambers along with the governorship was in 2012, and they lost that trifecta just a year later.
Mindful of this unstable balance, DFL members approached their legislative goals with urgency. “People just kind of threw caution to the wind,” remarked Hayden.
During his tenure, Walz has successfully signed numerous major bills into law. These measures encompass a $2.3 billion education budget, protection for abortion rights and transgender individuals, marijuana legalization, housing subsidies, enhanced child care tax credits, and new protections for worker bargaining rights, among others.
Corporate Reactions
The push for Minnesota’s universal paid family and medical leave, enacted last year, was largely spearheaded by unions and advocacy organizations. Elianne Farhat of TakeAction Minnesota described the policy as an example of effective collaboration between community organizations and elected officials.
However, Walz faced substantial opposition from Minnesota’s influential business sector, housing numerous Fortune 500 companies like Target, General Mills, and UnitedHealth.
Despite concerted efforts by corporate trade organizations to challenge the paid leave initiative—which relies on significant payroll tax increases—Walz remained committed to advancing the agenda.
Doug Loon, president of the Minnesota Chamber of Commerce, criticized the policy as impractical, warning of the financial burden it could impose on businesses. “It’s not very smart policy making,” he argued, emphasizing the additional costs mandated on businesses.
While Loon’s concerns were offered in discussions with Walz and DFL leaders, he felt that few adjustments were made to accommodate business interests. In contrast, union advocates like Burnham noted that their feedback was often implemented.
When asked if the Harris-Walz campaign would mirror Minnesota’s methods, the Harris campaign refrained from providing specific insights, with spokesperson Charles Lutvak emphasizing the need for further exploration before making assumptions.
He referenced CNBC’s annual rankings where Minnesota holds a commendable sixth position among U.S. states regarding business appeal.
Empathy and Engagement
Governor Walz, a former educator and union member with no financial ties to private enterprise, emphasizes a personal connection to the welfare of constituents. His commitment to understanding the challenges faced by vulnerable residents has marked his tenure.
In a notable instance, following his initial election, Walz embarked on a five-hour tour of Minneapolis homeless encampments to listen to the grievances of those without housing. “They spent that evening with no press, getting educated about what some of the challenges are,” remarked Anne Mavity, executive director of Minnesota Housing Partnership.
This approach has translated into significant financial commitments, including a billion-dollar investment in affordable housing and initiatives designed to safeguard existing public housing. Additionally, Walz enacted a tenants’ rights bill aimed at making eviction processes more stringent for landlords.
Source
www.cnbc.com