Fewer workers mean a drop in income tax, which is the state’s main revenue source.
“It’s very serious. They’re all very important things,” said Tyler Schipper, an economics professor at the University of St. Thomas emphasized about the impacts of fewer workers on the tax base.
“How do you get people to come here, how do you get corporations to open up here and hire people,” he added about the challenges to reverse this trend.
Schipper also said states typically have a couple of options to address this issue — adjust the budget, which could lead to job and program cuts, and increase taxes.
Republican Sen. Eric Pratt from Prior Lake expressed concern about the burden on taxpayers.
“They absolutely should [be worried]. Because not only might we see a drop in income tax, but we could potentially see a drop in business tax collections too,” Sen. Pratt said.