Minnesota legislature expands unemployment benefits for hourly school workers

The Minnesota Senate Committee on Finance convened on May 17, 2025, to discuss key legislative proposals aimed at enhancing support for school districts and addressing unemployment insurance for hourly school workers.

The meeting began with a presentation on a bill that seeks to provide additional funding for school districts to support unemployment insurance for hourly workers, including bus drivers, nutrition staff, clerical workers, and educational support aides. Prior to 2023, these workers were excluded from unemployment benefits due to misconceptions about their employment needs. This workforce, predominantly composed of women and women of color, has historically been undervalued and underpaid compared to their male counterparts in similar seasonal jobs who have had access to unemployment insurance since the program's inception.

In 2023, the Minnesota legislature rectified this exclusion by including hourly school workers in the unemployment insurance program, marking a significant step towards equity and support for public education. The current bill aims to ensure that school districts are not burdened with the costs associated with this program as it continues to evolve.

Following this discussion, the committee shifted focus to House File 1143, which involves the NLX train proposal. A fiscal overview was provided, indicating that of the original $194.7 million appropriated for the project, $373 million had been encumbered. The proposal presented to the committee included a recommendation to cancel $77.232 million of that appropriation, leaving a remaining balance of $117.1 million. Jenna Hofer, a nonpartisan fiscal analyst, was invited to elaborate on how these resources would be utilized, particularly in relation to special education funding.

The meeting concluded with a commitment to further explore the implications of these legislative proposals and their potential impact on Minnesota's education system and workforce. The committee's discussions reflect ongoing efforts to address historical inequities and enhance the support structures for essential school personnel.