REGIONAL- Minnesota’s summer unemployment benefit for hourly school workers, once hailed as a national first, looks headed for the chopping block.
The program, passed in 2023 to help paraprofessionals, bus drivers, cafeteria workers and other hourly school employees make ends meet during the summer, is now scheduled to sunset after the 2028-29 school year under a deal that cleared a key committee on Tuesday.
DFL and Republican leaders struck a budget deal with a tight spending cap and just enough room to throw in a $30 million patch to help keep the benefit going one more year with state funds. After that, school districts will be expected to cover the cost themselves, something many say they can’t afford. ISD 2142 St. Louis County Schools Finance Director Kim Johnson estimated when the original bill was passed that it could cost the district about $1 million if it had pay for the program.
But that would be a time-limited hit with the benefit getting axed in 2029.
The summer unemployment program was designed as a lifeline for school staff who often get laid off when the school year ends and don’t have access to summer work. Most earn about $17 an hour, and many say it’s tough to scrape by when June rolls around.
Kristen Scott, a special ed paraprofessional in Elk River, said the benefit made it possible to stay in her job.
“It also allows us to continue to come back each year to do the important job of helping all of our children thrive,” she told lawmakers. “Cutting unemployment benefits will force many in my field to seek other full-time jobs, leaving our kids wondering who will be there to care for them year after year.”
In 2023, lawmakers initially set aside $135 million to fund the benefit through 2027, but most of that money is already spoken for. The Minnesota Department of Education says the program cost $102 million over the past two years. That leaves just $33 million for summer 2026, when it’s expected to cost nearly twice that
Gov. Tim Walz wants to plug the gap with an additional $30 million, and the DFL-led Senate is eyeing another $70 million for 2027. But starting in 2027-28, districts would be on their own, and by 2029, the benefit disappears.
Some lawmakers have floated the idea that schools could use other funding to keep summer paychecks going and reduce the number of workers needing unemployment in the first place.
“My vision is not that we fight against UI,” said Rep. Ron Kresha said, “but that we give the opportunity for employees not to file for it in the beginning.”
Not surprisingly, many DFLers reacted negatively to the compromise.
“This is a line-in-the-sand moment,” said Rep. Emma Greenman, DFL-Minneapolis, who authored the original bill. “These are the same benefits seasonal workers in construction and other industries have had for years.”
Rep. Aisha Gomez, DFL-Minneapolis, called the workers “the fabric of our schools,” adding, “they’re the ones who fill in the gaps and make education possible.”
All three versions of the education finance bill ran through committees this week. Each one included an amendment from Democrats to keep the benefit in place long-term. Each one failed on a party-line vote.
The final version, HF2433, made it through the House Ways and Means Committee Tuesday and now heads to the full House for a vote. The legislative session wraps May 19. Lawmakers need a full budget passed by June 30 to keep the state running.
Democrats say the delayed repeal gives them a chance to reverse course if they win back more seats in 2026. But that’s a big “if,” and for now, the clock is ticking.