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Unemployment dispute slows education bill in Minnesota House

  • Minnesota's Education Finance committee deadlocked on April 28, 2025, over a budget bill addressing unemployment insurance for hourly school workers.
  • The dispute arose after a 2023 law required schools to provide unemployment benefits to hourly staff like bus drivers, with disagreement on repealing this mandate starting in 2028.
  • Republicans, led by Rep. Ron Kresha, seek to repeal the mandate and give schools funding flexibility, while DFL members, including Rep. Samantha Sencer-Mura, oppose repeal to protect low-wage workers.
  • The House bill HF1388 proposes $30 million to cover 2026 unemployment costs but $0 for 2027 and includes repeal after summer 2028, while Gov. Walz and the Senate propose higher funding for 2027.
  • Lawmakers must resolve the differences by May 19 to pass a budget, with Rep. Sencer-Mura affirming her caucus will not support the bill without amendments stopping the repeal.
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Minnesota lawmakers dispute unemployment insurance mandate for hourly school workers

ST. PAUL — Minnesota lawmakers are arguing over whether to mandate unemployment insurance for hourly school workers. In 2023, the Minnesota Legislature passed a bill requiring schools to provide unemployment insurance for hourly school workers like bus drivers, nutrition staff and paraprofessionals who are unable to find temporary work in the summer. Legislators at the time appropriated $135 million in state funds to help schools pay for these b…

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Grand Rapids Herald-Review broke the news in on Monday, April 28, 2025.
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