Minnesota establishes $135M fund for unemployment insurance for school workers

Minnesota's education support professionals are set to gain enhanced economic security following a significant legislative decision made during the Committee on Education Finance meeting on March 18, 2025. The committee discussed the ongoing implementation of a special revenue fund established in 2023, which allocated $135 million to provide unemployment insurance for hourly school workers, including bus drivers, custodians, and food service staff.

This fund was created to address a historical inequity, ensuring that hourly school workers, often laid off during summer months, receive the same unemployment benefits as other workers in the state. Initially, estimates suggested that the cost of providing these benefits could reach $340 million annually. However, the actual costs have been significantly lower, averaging around $58 million per year after the first year of implementation.

During the meeting, it was revealed that the fund currently holds $30 million, with proposals to add an additional $30 million for fiscal year 2026 and $70 million for fiscal year 2027. This funding aims to cushion the districts against potential costs associated with unemployment claims. If unused by 2028, the funds will revert to the general fund.

The committee also discussed amendments to the bill that would allow school districts to levy for additional costs incurred from providing unemployment benefits. This change is expected to streamline the funding process and ensure that districts can manage their financial responsibilities effectively.

Testimonies from education support professionals highlighted the positive impact of the unemployment insurance on their lives. Kat Briggs, a bus driver from Independent School District 196, shared her experience of how the benefits provided her with essential economic security, allowing her to support her family without the stress of financial instability during the summer months.

The committee's discussions and decisions reflect a commitment to improving the working conditions and financial stability of Minnesota's education support staff, ensuring they are treated with the dignity and respect they deserve. As the implementation of these changes progresses, stakeholders are optimistic about the long-term benefits for both workers and the educational system as a whole.