St. Cloud Restaurant Owner Represents Small Business at State of the State

(KNSI) – Jules’ Bistro owner Donella Westphal was invited to the Minnesota State of the State address as a representative of small business owners. Governor Tim Walz mentioned the St. Cloud restaurant owner’s name when he talked about how tax increases caused by the Legislature’s failure to agree on repaying the state’s unemployment insurance deficit are hurting small businesses. She says it seems like the pandemic is over, but restaurants are still gritting it out.

Jake Judd (KNSI)

“Many of us took on additional debt just to get through the pandemic, not even to make improvements to our businesses but just to take care of our staff and to continue to take care of our community. And right now, with inflation and a really tight job market, we don’t need another tax hike.”

Donella says she’s worked hard to take care of her staff and every penny her company loses is less she can invest in her restaurant.

“Every additional expense that’s hitting me right now becomes a decision about whether I pay for my staff to park, whether I pay for my staff to receive professional development or not, whether I pay for my staff to have days off with their family.”

She said the reserves businesses had before the pandemic has vanished, making every expense a challenge. Legislative leaders are deadlocked on the unemployment insurance issue leading to an automatic tax increase on employers statewide after lawmakers missed a March 15 deadline to repay the money.

Lawmakers have four weeks left in the session to figure out how to use the state’s historic $9.25 billion budget surplus and a billion in unspent COVID funds. Senate Republicans have said they want to use the money for permanent tax cuts. Democrats say they want to use the money for education and frontline worker bonuses.

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