April 15, 2021

Senator , Chair Senator Zach Duckworth Senate Finance Committee 2103 Senate Building 2113 Building St. Paul, MN 55155 St. Paul, MN 55155

Dear Senators Rosen & Duckworth,

On behalf of the Minnesota Recruiting & Staffing Association (MNRSA) and our hundreds of members across the state, I am writing to express our support for the “Unemployment Insurance Trust Fund" appropriation contained in the delete all amendment to SF2387. Using funding made available as part of the federal dollars the state will be receiving from Section 9901 of the American Rescue Plan Act to reduce the enormous deficit the UI Trust fund is facing makes sound economic sense.

Our members not only employ the workers in our agencies, but we also provide staffing to thousands of Minnesota businesses throughout the state. Many of our members and their customers are still feeling the impacts of COVID. Some are facing enormous tax bills dues to the state’s failure to comply with the federal tax code regarding PPP loans. Many of the businesses we supply staffing for are dealing with supply chain challenges and staffing issues related to the unemployment benefits provided by the state and federal government.

While Minnesota employers are trying to dig out of the fiscal crisis they did not create, the state should be doing everything possible to lessen their economic burdens. We already know existing state law will put in place additional surcharges and raise fees on our UI taxes, to rebuild UI reserves and reduce the UI deficit. By eliminating a portion of the trust fund deficit, we can reduce the length of time and increased fees Minnesota employers will be facing.

Thank you both for your leadership on these issues. Our association looks forward to continuing to work with members of the in finding ways to help Minnesota businesses quickly rebound from COVID.

Sincerely,

Steve Yakesh, Chair Minnesota Recruiting & Staffing Association Versique Search Minnesota Recruiting & Staffing Association 400 Robert St. No., Suite 1500 St. Paul, MN 55101 Contact: Deb McMillan [email protected] 954-412-7035