Justin Stofferahn
Name: Justin Stofferahn
Public Office Sought: Minnesota State Senate - District 38
Email: [email protected]
Phone: (612) 594-1252
Campaign website: www.justinstofferahn.com
Twitter handle: @justinfor38
Facebook page: www.facebook.com/justinfor38
Candidate Bio
I live in White Bear Township with my wife Marissa and our two young children, Freddy and Verity. I have spent my career working to create economic opportunity for people. At the BlueGreen Alliance I craft policies that will harness the potential of the green economy to decarbonize public infrastructure while creating good jobs in the U.S. Previously I advocated on behalf of the Coalition of Greater Minnesota Cities, helping rural communities secure investments in economic development, transportation and public safety. I also spent several years at the Department of Revenue leading teams in developing legislative proposals to create a fairer and simpler tax code for Minnesota businesses.
I serve as a board member of the Minnesota Main Street Alliance where I have advocated alongside small business owners to reform economic development programs. Locally I serve on the board of the nonprofit Giving Gardens, which works to address issues of food insecurity, and I am a member of the White Bear Township Economic Development Advisory Board.
These experiences have taught me how to bring folks together across political lines to pursue common-sense public policy that creates opportunity for Minnesotans.
What would be your top three priorities if elected?
How would you characterize the business climate in the East Metro and what role do businesses play in supporting quality of life issues in East Metro communities?
Setting aside the unique challenges caused by the COVID-19 pandemic, the business climate in our communities is strong, but faces headwinds. As I have visited the many manufacturing companies that call Senate District 38 home, they all highlighted the importance of education by stressing the challenges of what had been the state’s tight labor market and the desperate need for workers with skills in the trades. While that tight labor market has disappeared an educated workforce will remain essential to Minnesota in the years to come.
What role do you think the State should have in attracting and retaining jobs, and what steps would you take to solicit new businesses to and retain existing businesses in the East Metro?
State government has an important role in fostering business development, but one that must be rethought. We spent $600 million a biennium on business subsidies and lose another $2 billion in corporate tax expenditures, all of which primarily benefits the largest companies in our state that can afford the accountants, attorneys and consultants necessary to navigate those programs.
Meanwhile, we spend just $1 million a biennium on small business technical assistance, and only another $1.3 million on the Emerging Entrepreneurs Program. This despite the data being clear that job creation is driven by startup companies, our communities being stronger when small businesses can thrive, and clear barriers holding back minority-owned businesses. In the legislature I will fight to create and expand programs that help increase access to capital and fund innovation while working to ensure we reduce barriers to entry and ensure competition.
Do you support any specific employment-related proposals (such as minimum wage, sick time, or mandatory scheduling notice)? If so, what steps would you take to understand the impact of an ordinance on the many types of businesses in the east metro and how would you define any exceptions to those policies?
I believe that building a strong economy in Minnesota means one where workers and businesses can thrive. As a board member of the Minnesota Main Street Alliance I have worked alongside small business owners working to level the playing field so they can provide their employees the same benefits their larger competitors offer. I support efforts to make paid leave and sick time available to more Minnesotans and support the state’s current minimum wage which creates a necessary floor for workers while providing predictability to employers. I will work to engage with businesses in my district the way I already have, by visiting with them and learning about the challenges they face.
What is your strategy to address public safety, transportation, and housing issues?
Having spent part of my career advocating on behalf of local governments, I believe these issues require strong partnerships with cities and counties. While working on behalf of the Coalition of Greater Minnesota Cities I helped communities advocate for critical programs like Local Government Aid and Small Cities Streets funding, but unfortunately the Small Cities Streets program did not receive any funding during the 2019 session and Local Government Aid has been a frequent target of cuts and could benefit from reforms that broaden the number of cities that qualify.
Minnesota’s economic competitiveness, particularly in the Twin Cities Metro, is built in part on having housing available that is more affordable than in many other thriving metropolitan areas. But in recent years that competitiveness has been put at risk. It is imperative that we explore all avenues to create a diverse set of affordable housing options, from reviewing state and local regulations, exploring property tax changes and investing in programs that spur housing development at all ends of the affordability spectrum. We must also ensure programs target housing segregation, which has exploded in recent decades leaving the overwhelming majority of new affordable housing units concentrated in poor communities in Minneapolis and St. Paul instead of throughout the metro so that all families have a chance to access vibrant communities and great schools.
What are your priorities for the State’s budget? Are there any services currently provided by the State that you believe should be expanded, cut back or eliminated? Are there new opportunities to share services with other entities?
Over 80% of general fund spending is education (E-12 and higher education) and health and human services, most of which is the Medicaid program. It is paramount that we protect those investments. Education has been Minnesota’s silver bullet for generations and helped set us apart economically, but per student state funding to our E-12 school districts has declined by over 12% when adjusted for inflation, while higher education funding has long been declining as a share of our state budget. Efforts to lower the cost of healthcare can also help drive down the cost of the state’s Medicaid program, but this requires a methodical and long-term approach as nonspecific cuts to Medicaid will jeopardize critical coverage and long-term care to seniors and folks with disabilities. Some examples of this would be utilizing the state’s purchasing power to reduce the cost of prescrition drugs or ensuring in-home health workers earn a living wage so that long-term care can be administered in someone’s home whenever possible, instead of the more expensive nursing home setting.
In addition to these critical spending areas, I would be interested in expanding programs that support innovation and small businesses. For example, Minnesota spends just $500,000 supporting our Small Business Development Centers which because of recent changes in federal regulations have prioritized spending more time on each individual business that seeks assistance, but without additional funding this means fewer businesses can access services. The MnDRIVE program at the University of Minnesota is a unique partnership between the state and University of Minnesota that funds investments in basic research and has spurred the development of new companies and products, but state funding for this program has steadily declined since its inception. We should also expand funding for the Emerging Entrepreneurs Program that makes equity investments in women and minority-owned businesses so that we can provide disadvantaged communities the tools necessary to build their own wealth and begin to reduce the racial wealth gaps at the heart of our state’s stark racial disparities.
One way to pay for these priorities would be to review the $600 million that DEED Commissioner Steve Grove says we spend on industry specific business subsidies. Research from groups like Good Jobs First have demonstrated that most business subsidy programs benefit the very largest companies at the expense of small businesses and startup companies. When it comes to lowering healthcare costs we should reconsider the $300 million blank check we send to insurance companies for reinsurance. Long-term, driving down the costs for healthcare can also benefit taxpayers and it will reduce what we must spend on Medicaid and other public healthcare programs.
What will you do to expand your district’s tax base?
We must protect what makes the communities in Senate District 38 such a desirable place to live. This means continuing to invest in our schools, protecting the incredible environmental assets we have, expanding public transportation options and prioritizing the needs of the main street businesses that move our communities forward.
One specific example to highlight is the Minnesota Technology Corridor, which is partly within Senate District 38. Investments in education and innovation will ensure that the project can flourish and create a vibrant tech ecosystem in the northeast metro.
How will you work with K-12 and post-secondary educational institutions and businesses to ensure our region develops and retains an educated workforce?
A top priority will be protecting and expanding our investments in education as a state. For example, per student state funding for E-12 schools has not kept pace with rising costs and thus has dropped by 12.7% since 2003. We must reverse that trend. We must also make sure that we expand and strengthen career and technical education programs that provide alternatives to students and help build a 21st Century workforce.
COVID-19 has also highlighted the important and at times beneficial role that distance learning can play. At the same time distance learning has also served to further exacerbate inequities that already plagued our education system. Making sure that all students have access to the internet and technology will enable teachers to ensure they reach all of their students.
What is the role of the State in fostering increased minority- and women-owned businesses?
Women and people of color face a range of barriers to starting and operating businesses. Research has shown that business owners of color face much larger barriers to accessing capital despite being as profitable, if not more, than white-owned businesses. One way for the state to do more is to reprioritize the economic development investments we make. The Emerging Entrepreneur Program makes investments in businesses owned by minority or low-income persons, women, veterans, and people with disabilities, but only receives around $1.3 million a biennium while programs or tax expenditures tilted to larger companies receive tens of millions of dollars.
The state must also look holistically at the challenges facing minority and women business owners. The lack of affordable childcare or debt from the cost of higher education can create economic barriers that prevent women and minorities from ever attempting to start their own business.
What further policies can the State of Minnesota adopt to help the business community recover from the COVID-19 pandemic?
From the early outset of the pandemic I had been calling for grant funding to be made available to small businesses in Minnesota instead of loading them up with additional debt. I am grateful the Legislature finally got around to using funding from the federal CARES Act to make such grants available. Unfortunately the legislature should have done this much earlier and could have further increased the amount appropriate by exploring unexpended dollars from programs like the Job Creation Fund, Angel Investment Tax Credit or Launch Minnesota. As we look toward the future we must adopt a stronger focus on the long-term decline of new business development which has totally collapsed during this pandemic. Startup companies are the drivers of job growth. National blueprints from organizations such as the StartUs Up Coalition could serve as the basis of a Minnesota-style agenda to spur entrepreneurship.
Is there anything else you would like to share with voters not covered above?
Public Office Sought: Minnesota State Senate - District 38
Email: [email protected]
Phone: (612) 594-1252
Campaign website: www.justinstofferahn.com
Twitter handle: @justinfor38
Facebook page: www.facebook.com/justinfor38
Candidate Bio
I live in White Bear Township with my wife Marissa and our two young children, Freddy and Verity. I have spent my career working to create economic opportunity for people. At the BlueGreen Alliance I craft policies that will harness the potential of the green economy to decarbonize public infrastructure while creating good jobs in the U.S. Previously I advocated on behalf of the Coalition of Greater Minnesota Cities, helping rural communities secure investments in economic development, transportation and public safety. I also spent several years at the Department of Revenue leading teams in developing legislative proposals to create a fairer and simpler tax code for Minnesota businesses.
I serve as a board member of the Minnesota Main Street Alliance where I have advocated alongside small business owners to reform economic development programs. Locally I serve on the board of the nonprofit Giving Gardens, which works to address issues of food insecurity, and I am a member of the White Bear Township Economic Development Advisory Board.
These experiences have taught me how to bring folks together across political lines to pursue common-sense public policy that creates opportunity for Minnesotans.
What would be your top three priorities if elected?
- Ensuring that as we address what are likely to be significant fiscal challenges related to COVID19 that we protect critical investments in our schools, healthcare for seniors, the disabled and children, and tools to protect our environment and public health. And reimagining these investments so we can tackle our state’s significant racial disparities.
- Building an economic development agenda that prioritizes the needs of small business owners and entrepreneurs, particularly minority-owned businesses, so that we can rebuild our economy by ensuring resources for the key drivers of job creation in our state.
- Tackling the rising costs of healthcare including skyrocketing costs of prescription drugs, increasing costs for hospital care and ever-climbing insurance premiums, co-pays and deductibles.
How would you characterize the business climate in the East Metro and what role do businesses play in supporting quality of life issues in East Metro communities?
Setting aside the unique challenges caused by the COVID-19 pandemic, the business climate in our communities is strong, but faces headwinds. As I have visited the many manufacturing companies that call Senate District 38 home, they all highlighted the importance of education by stressing the challenges of what had been the state’s tight labor market and the desperate need for workers with skills in the trades. While that tight labor market has disappeared an educated workforce will remain essential to Minnesota in the years to come.
What role do you think the State should have in attracting and retaining jobs, and what steps would you take to solicit new businesses to and retain existing businesses in the East Metro?
State government has an important role in fostering business development, but one that must be rethought. We spent $600 million a biennium on business subsidies and lose another $2 billion in corporate tax expenditures, all of which primarily benefits the largest companies in our state that can afford the accountants, attorneys and consultants necessary to navigate those programs.
Meanwhile, we spend just $1 million a biennium on small business technical assistance, and only another $1.3 million on the Emerging Entrepreneurs Program. This despite the data being clear that job creation is driven by startup companies, our communities being stronger when small businesses can thrive, and clear barriers holding back minority-owned businesses. In the legislature I will fight to create and expand programs that help increase access to capital and fund innovation while working to ensure we reduce barriers to entry and ensure competition.
Do you support any specific employment-related proposals (such as minimum wage, sick time, or mandatory scheduling notice)? If so, what steps would you take to understand the impact of an ordinance on the many types of businesses in the east metro and how would you define any exceptions to those policies?
I believe that building a strong economy in Minnesota means one where workers and businesses can thrive. As a board member of the Minnesota Main Street Alliance I have worked alongside small business owners working to level the playing field so they can provide their employees the same benefits their larger competitors offer. I support efforts to make paid leave and sick time available to more Minnesotans and support the state’s current minimum wage which creates a necessary floor for workers while providing predictability to employers. I will work to engage with businesses in my district the way I already have, by visiting with them and learning about the challenges they face.
What is your strategy to address public safety, transportation, and housing issues?
Having spent part of my career advocating on behalf of local governments, I believe these issues require strong partnerships with cities and counties. While working on behalf of the Coalition of Greater Minnesota Cities I helped communities advocate for critical programs like Local Government Aid and Small Cities Streets funding, but unfortunately the Small Cities Streets program did not receive any funding during the 2019 session and Local Government Aid has been a frequent target of cuts and could benefit from reforms that broaden the number of cities that qualify.
Minnesota’s economic competitiveness, particularly in the Twin Cities Metro, is built in part on having housing available that is more affordable than in many other thriving metropolitan areas. But in recent years that competitiveness has been put at risk. It is imperative that we explore all avenues to create a diverse set of affordable housing options, from reviewing state and local regulations, exploring property tax changes and investing in programs that spur housing development at all ends of the affordability spectrum. We must also ensure programs target housing segregation, which has exploded in recent decades leaving the overwhelming majority of new affordable housing units concentrated in poor communities in Minneapolis and St. Paul instead of throughout the metro so that all families have a chance to access vibrant communities and great schools.
What are your priorities for the State’s budget? Are there any services currently provided by the State that you believe should be expanded, cut back or eliminated? Are there new opportunities to share services with other entities?
Over 80% of general fund spending is education (E-12 and higher education) and health and human services, most of which is the Medicaid program. It is paramount that we protect those investments. Education has been Minnesota’s silver bullet for generations and helped set us apart economically, but per student state funding to our E-12 school districts has declined by over 12% when adjusted for inflation, while higher education funding has long been declining as a share of our state budget. Efforts to lower the cost of healthcare can also help drive down the cost of the state’s Medicaid program, but this requires a methodical and long-term approach as nonspecific cuts to Medicaid will jeopardize critical coverage and long-term care to seniors and folks with disabilities. Some examples of this would be utilizing the state’s purchasing power to reduce the cost of prescrition drugs or ensuring in-home health workers earn a living wage so that long-term care can be administered in someone’s home whenever possible, instead of the more expensive nursing home setting.
In addition to these critical spending areas, I would be interested in expanding programs that support innovation and small businesses. For example, Minnesota spends just $500,000 supporting our Small Business Development Centers which because of recent changes in federal regulations have prioritized spending more time on each individual business that seeks assistance, but without additional funding this means fewer businesses can access services. The MnDRIVE program at the University of Minnesota is a unique partnership between the state and University of Minnesota that funds investments in basic research and has spurred the development of new companies and products, but state funding for this program has steadily declined since its inception. We should also expand funding for the Emerging Entrepreneurs Program that makes equity investments in women and minority-owned businesses so that we can provide disadvantaged communities the tools necessary to build their own wealth and begin to reduce the racial wealth gaps at the heart of our state’s stark racial disparities.
One way to pay for these priorities would be to review the $600 million that DEED Commissioner Steve Grove says we spend on industry specific business subsidies. Research from groups like Good Jobs First have demonstrated that most business subsidy programs benefit the very largest companies at the expense of small businesses and startup companies. When it comes to lowering healthcare costs we should reconsider the $300 million blank check we send to insurance companies for reinsurance. Long-term, driving down the costs for healthcare can also benefit taxpayers and it will reduce what we must spend on Medicaid and other public healthcare programs.
What will you do to expand your district’s tax base?
We must protect what makes the communities in Senate District 38 such a desirable place to live. This means continuing to invest in our schools, protecting the incredible environmental assets we have, expanding public transportation options and prioritizing the needs of the main street businesses that move our communities forward.
One specific example to highlight is the Minnesota Technology Corridor, which is partly within Senate District 38. Investments in education and innovation will ensure that the project can flourish and create a vibrant tech ecosystem in the northeast metro.
How will you work with K-12 and post-secondary educational institutions and businesses to ensure our region develops and retains an educated workforce?
A top priority will be protecting and expanding our investments in education as a state. For example, per student state funding for E-12 schools has not kept pace with rising costs and thus has dropped by 12.7% since 2003. We must reverse that trend. We must also make sure that we expand and strengthen career and technical education programs that provide alternatives to students and help build a 21st Century workforce.
COVID-19 has also highlighted the important and at times beneficial role that distance learning can play. At the same time distance learning has also served to further exacerbate inequities that already plagued our education system. Making sure that all students have access to the internet and technology will enable teachers to ensure they reach all of their students.
What is the role of the State in fostering increased minority- and women-owned businesses?
Women and people of color face a range of barriers to starting and operating businesses. Research has shown that business owners of color face much larger barriers to accessing capital despite being as profitable, if not more, than white-owned businesses. One way for the state to do more is to reprioritize the economic development investments we make. The Emerging Entrepreneur Program makes investments in businesses owned by minority or low-income persons, women, veterans, and people with disabilities, but only receives around $1.3 million a biennium while programs or tax expenditures tilted to larger companies receive tens of millions of dollars.
The state must also look holistically at the challenges facing minority and women business owners. The lack of affordable childcare or debt from the cost of higher education can create economic barriers that prevent women and minorities from ever attempting to start their own business.
What further policies can the State of Minnesota adopt to help the business community recover from the COVID-19 pandemic?
From the early outset of the pandemic I had been calling for grant funding to be made available to small businesses in Minnesota instead of loading them up with additional debt. I am grateful the Legislature finally got around to using funding from the federal CARES Act to make such grants available. Unfortunately the legislature should have done this much earlier and could have further increased the amount appropriate by exploring unexpended dollars from programs like the Job Creation Fund, Angel Investment Tax Credit or Launch Minnesota. As we look toward the future we must adopt a stronger focus on the long-term decline of new business development which has totally collapsed during this pandemic. Startup companies are the drivers of job growth. National blueprints from organizations such as the StartUs Up Coalition could serve as the basis of a Minnesota-style agenda to spur entrepreneurship.
Is there anything else you would like to share with voters not covered above?