Harris, Walz use Minnesota’s progressive reforms as economic ‘road map’

U.S. Vice President and Democratic presidential candidate Kamala Harris and her running mate Minnesota Governor Tim Walz make gestures at a campaign rally in Milwaukee, Wisconsin, the United States, on August 20, 2024.

Kevin Lamarque | Reuters

Minnesotans say to understand the economic vision of presidential candidate Harris-Walz, look no further than the North Star State.

"I heard some of the things that were talked about on the ticket," Minnesota AFL-CIO President Bernie Burnham said in an interview with CNBC. “They reflect what’s going on here.”

Under Democratic Gov. Tim Walz, Minnesota expanded union protectionapproved more than $1 billion housing resources, promulgated general Paid family and medical leavefunding free school lunchHiking corporate tax etc.

Taken together, they make Minnesota a proving ground for progressive policies that face opposition at the federal level.

Now, with Walz becoming Vice President Kamala Harris’ running mate, Minnesota’s playbook is gaining national attention.

“It’s definitely a road map,” Amy Koch, a Republican strategist who served as a Minnesota senator, told CNBC.

Several of Harris’s campaign’s economic priorities already mirror policies championed by Minnesota’s Walz.

Vice President proposes stronger laws worker protectioninvest in building 3 million new homes, provide a $25,000 subsidy to all eligible first-time homebuyers, and expand the child tax credit, earned income tax credit and other tax programs. She also supports raising corporate taxes.

But at the same time, Harris toned down some of the rhetoric about corporate greed and big business monopoly that has made waves in many of President Joe Biden’s speeches.

That has led some leaders in corporate America to hold out hope that if Harris is elected president, they might get a bigger seat than her predecessor.

But if Harris is documenting what Walz did in Minnesota, that hope may be little more than a pipe dream.

“Be careful”

Walz’s progressive policy agenda swept through the Minnesota Legislature at lightning speed — much of it passing in the first months of 2023, when he begins his second term.

This is possible because of a rare combination of factors that favor Democrats.

When Walz was re-elected as Minnesota governor in November 2022, the state’s Democratic Party (the Democratic Farmer-Labor Party, DFL) won the election. governance trio By slim majorities: just one seat in the Senate and six in the House.

Democratic candidate for Governor Tim Walz attends a gun violence prevention roundtable with former Rep. Gabby Giffords in Minneapolis, Minnesota, U.S., October 26, 2018. January 26th.

Brian Snyder | Reuters

“Honestly, it’s a little surprising,” said Jeff Hayden, DFL, a former Minnesota senator. “We’re all a little breathless,” he told CNBC.

A month later, the new DFL majority got more good news.

The Minnesota Office of Management and Budget reports the state will introduce it in the 2023 legislative session $17.6 billion budget surplus. This is the largest single-year budget surplus in Minnesota history, the product of high tax rates and lower-than-expected spending levels.

The DFB now has both the majority of the voting rights and the funds needed to pass the agenda.

Minnesota Democrats also understand how fragile their three-game winning streak is.

The Land of Lakes is unquestionably blue in the presidential election. But in state Levels are much less partisan. Minnesota Democrats last won the House, Senate and governorship in 2012, but they quickly lost all three in the following election cycle.

With the defeat of 2014 still fresh in their minds, Minnesota Democrats know they may only have months to turn their priorities into law.

“People are just throwing caution to the wind,” Hayden said.

During his second term, Walz signed multiple deals main bill Enter lawincluding a $2.3 billion education budget, and commemoration abortion access and transgender protections, legalizing marijuana, expanding housing subsidy and child care tax credits, strengthening worker bargaining protections, paying free school lunch and ban so-called corporate “junk fees.”

Industrial resistance

The political push for universal paid family and medical leave in Minnesota, which Walz signed into law last year, was driven largely by unions and progressive advocacy groups.

“We have a very important seat at the table,” said Elianne Farhat, executive director of TakeAction, a progressive nonprofit in Minnesota. “It’s really a great model and approach to what we call shared governance: the community and elected officials.”

But Walz must weigh those interests against pressure from Minnesota’s important business community, of which Minnesota is very proud. More than a dozen Fortune 500 companies are headquartered here, including Target, general mills and UnitedHealth.

The Target flagship store at Target headquarters in Minneapolis, Minnesota on January 7, 2021.

Aaron P/Ball Griffin | GC Images | Getty Images

Business trade groups have fought tooth and nail to block the push for paid leave, which would be funded in part by a steep payroll tax hike.

“This is not a very smart policy decision,” said Doug Loon, president of the Minnesota Chamber of Commerce. “It’s creating a new business mandate and new entitlements that are very costly for Minnesotans.” “

In meetings with Walz and DFL lawmakers, Loon said his concerns were heard but rarely acted upon: “We’ve seen almost no final action on the things we’re asking for,” he told CNBC.

Meanwhile, unions have had the opposite experience: Burnham, the Minnesota AFL-CIO president, said lawmakers made the changes they requested when union leaders expressed opposition to part of the bill.

When asked whether the Harris-Walz vote would replicate some of Minnesota’s practices, the Harris campaign sidestepped the question. “I don’t think there’s a need to speculate on what she supports,” campaign spokesman Charles Lutvak told CNBC.

He also noted that Minnesota ranked sixth in CNBC’s annual ranking of America’s best states for business.

personal approach

Former high school teacher and union member With zero stock holdings, Walz has few apparent financial or professional ties to the private sector. He also has a personal interest in the welfare of his people, which was reflected on the campaign trail and is an important part of his political brand.

Minnesota Gov. Tim Walz listened to homeless voters after being elected to a first term in 2018.

Monica Nilsson, Minnesota Housing Partners Advocate

For example, when Walz was first elected governor in 2018, he made a five-hour tour of homeless encampments in Minnesota, where he listened to the concerns of homeless Minnesotans.

“They spent that night without the media and learned about some of the challenges,” Anne Mavity, executive director of the nonprofit Minnesota Housing Partnership, told CNBC. It’s a different level of care, investment and attention.”