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RESOLUTION NO. 95-114
SUPPORTING WORKER'S COMPENSATION REFORM
WHEREAS, the average cost of worker's compensation in Minnesola is 40% higher than
in Wisconsin, and
WHEREAS, nearly $100 million is spent by counties ($15.3 million), cities ($35
million), school districts (23.9 million) and the state of Minnesota ($24.7 million) for direct
worker's compensation. If these counties, cities, school districts were located in Wisconsin, their
premiums for worker's compensation could be up to 40 percent less, and
WHEREAS, local governments pay these high worker's compensation costs when
employing private Minnesota contractors to perform services for their governments and these
costs are not included in the $100 million direct worker's compensation costs, and
WHEREAS, if Minnesota had worker's compensation reform which would be close to
any of the bordering states, there would be less money spent on worker's compensation
premiums and more money spent for property tax relief, or services, and
WHEREAS, local city and county development agencies find it increasingly difficult to
bring good jobs to their community and expand their tax base because of high business costs,
including worker's compensation, and
WHEREAS, local governments need expanding tax base if they are going to hold down
property tax increases, and
WHEREAS, between 1991 and 1992, 30 Minnesola manufacturing companies
employing 1,500 workers moved from Minnesota and all gave the reason for their move,
Minnesota's high worker's compensation costs
NOW THEREFORE BE IT RESOLVED, that the Stillwater City Council is calling
upon our legislators and the Governor to pass major worker's compensation reform which will
make Minnesota worker's compensation rates comparable to those of surrounding states.
BE IT RESOLVED by the City Council of Stillwater, Minnesota that the City of
Stillwater hereby supports the Worker's Compensation Reform, and the appropriate city staff is
authorized to sign said Resolution.
Adopted by Council this 2nd day of May, 1995.
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Attest:
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Morli eldon, City Clerk