The Minnesota House passed a jobs and economic development budget bill Tuesday evening on a vote of 70 - 60.
DFL Rep. Tim Mahoney of St. Paul says the bill includes cuts to the Minnesota Trade Office and a local business subsidy fund that helps small and medium firms expand their employment.
"Government does not create jobs, but it does lay the foundation for businesses to create jobs," Mahoney said.
Mahoney said the items in the bill such as the job skill partnerships, the trade office and the Minnesota investment fund cuts, that it will hurt small and midsize businesses.
"We need to capitalize on out state, our public private partnership with small and midsize businesses, and we're not doing it," he said.
Republicans said they were forced to make $26 million in cuts to jobs and economic development programs to help close the state's 5 billion dollar budget gap. House jobs committee chair Bob Gunther said he also tried to limit cuts to housing aid to about 10 percent.