[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6621775,"mediaKeyId","2796530-84b049629c4b4e73f88a688c07857449","parentId",2796530,"title","DEED outlines financial stress at Vocational Rehabilitation Services; lawmakers press for answers","audioSeconds",3410,"startMs",1048000,"endMs",4458000,"viewUrl","/Search/View?dp=1&key=2796530-84b049629c4b4e73f88a688c07857449&start=1048&end=4458","thumbnailUrl","https://assets.pipeline.soar.com/2796530-84b049629c4b4e73f88a688c07857449/thumbnail_1048000.jpg","articleUrl","/articles/6621775/Minnesota/DEED-outlines-financial-stress-at-Vocational-Rehabilitation-Services-lawmakers-press-for-answers","mediaUrl","https://secure.pipeline.soar.com/6621775-8cfca63ae47944c5e0f864e88203d66a/orig.mp4?Expires=1773618392&Signature=N7WkHeB7A6ObQGwhuUkQ7gIOpT76ZLlsEnDY0n4hfoB3lTfMiDf3PiiX2WteOgGxIs24GLEeCNpFdWD~50NQlw4L9MN9lEe-e~LPeNgHp2OxnBqcQaHITQ4D8PYOTVYg6tiRpeDSUVymTP64vmVVsaVpW3e-7XysirbwbVjqHxUJj~zP~aauArZ~G77ikxjkbhii59YfySdDgpJD7zIXDam2Kw3C-RdiuoOESdCRrtxs7V9QwLoxR4QfDgLxgNFhObJilMH6TDFD4EN77~O1J95AN97qiItfOhe-NLk7k8isDExdrgQmqGaIHRI6Vczc5GZUbjXZncaKIVrU5p2YFQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota Legislature","date","2025-03-27T18:38:20.713Z","article","Deputy Commissioner Evan Rowe of the Department of Employment and Economic Development told the House Workforce, Labor, Economic Development and Finance Committee on March 27 that Vocational Rehabilitation Services is facing “significant cost pressures” driven by flat federal grants, declining re‑allotment funds, rising service costs and increased demand.

“VRS is a program that assists Minnesotans with disabilities to prepare for, find, and keep a job,” Rowe said in a prepared overview. He described the program as a federal–state partnership, funded about 80% by the U.S. Department of Education with a required state match. Rowe said the program received re‑allotment funding in 2022 and 2024 — one‑time funds made available when other states underspend — but that re‑allotment looks unlikely for federal fiscal years 2025–26 and that represents “about a $5.4 million hit” to expected resources.

Rowe told the committee that applications to VRS have risen roughly 50% annually since 2020, and the average cost per participant and the complexity of client needs have grown. To manage the budget outlook, DEED has imposed a hiring freeze, offered early‑retirement and voluntary incentives, tightened controls on external contracts, and increased staff provision of direct services where possible.

Committee members pressed DEED on timing and decision‑making. Rep. [first name not specified in transcript] Baekeberg asked when the agency became aware of the shortfall; Rowe said DEED saw \"initial signs in the summer of 2024\" and took incremental steps, with more urgent actions taken after updated financial projections in the fall. Rep. Matt Frazier (state representative) framed the situation as one of federal uncertainty and asked how DEED was accounting for federal changes. Rowe said the agency was monitoring federal developments and coordinating with federal partners.

Lawmakers and VRS staff described immediate personnel and service impacts. Several VRS counselors and union representatives said staff are taking early retirement or leaving and some positions will receive permanent layoff letters. Chandra Peterson, a career counselor who serves deaf clients, said that more than 30 staff had already left through retirement, voluntary layoffs or position eliminations and that permanent layoff notices were pending. She said counselors’ caseloads can range from roughly 55 to more than 100 clients depending on the population served.

Representative Hicks introduced a bill intended to “plug the hole” in VRS funding and urged members to seek budget resources to avoid cuts. Several VRS counselors and union members testified in support of additional funding, describing the program’s role in helping Minnesotans with disabilities reach independent employment and citing state fiscal savings when people move off Social Security benefits. Renata Schultz, a vocational rehabilitation counselor, said that from 2021 to 2023 Minnesota earned about $61 million in federal savings when people left Social Security benefits after returning to work.

Committee members repeatedly requested more detailed, timely figures from DEED. When asked for a projected deficit number, Rowe said figures had been refined and that the department would follow up; earlier internal estimates provided to some members put the shortfall around $10 million per year (roughly $20 million across several years), and the governor’s revised budget proposed about $5 million in additional state match per year as partial relief.

The committee did not take a final vote on VRS funding but heard multiple requests from lawmakers for follow‑up fiscal detail, and for DEED to work with stakeholders on options to preserve services. Chair Baker asked staff to circulate the IPS and other DEED reports to committee members to inform upcoming budget deliberations.","mediaType","Video","parentTitle","House Workforce, Labor, and Economic Development Finance and Policy Committee 3/27/25","oneSentenceSummary","Deputy Commissioner Evan Rowe told the House Workforce, Labor, Economic Development and Finance Committee on March 27 that Minnesota’s Vocational Rehabilitation Services (VRS) faces budgetary pressure caused by a flat federal grant, declining re‑allotment funds and rising service costs.","taxTitle","2025 Legislature MN, Minnesota","taxId",77817,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6621780,"Committee hears bill to maintain funding for DEED small-business assistance program",766,68190,835005,"/Search/View?dp=1&key=2796530-84b049629c4b4e73f88a688c07857449&start=68&end=835","https://assets.pipeline.soar.com/2796530-84b049629c4b4e73f88a688c07857449/thumbnail_68190.jpg","/articles/6621780/Minnesota/Committee-hears-bill-to-maintain-funding-for-DEED-small-business-assistance-program","https://secure.pipeline.soar.com/6621780-76af47f6634958f3d0288b5430828b30/orig.mp4?Expires=1773618392&Signature=IQ0KB2mx3FD3DUqwRbGjdHVLZIcCnjezDhaBkkvloJnsL6RQwRWnMgCm-PoPa217r0btHL1Fj1GJ9fO9dYcO5uWy7wEyw4VDQNj1VRhjuJAr99mxwtOy4GcIyZdv5QvN-CqLFmSc9nJxYC-eUhaS~1w0iRoEf~OfFMnMJXmtR1gJ1JIzk5Wdz1o6dmORk-~2g3egfx6~AUcQPLGPzOf0lGi3U2yRAjp751PeQAQ3P5OOjeYuUuJrA14jC91wa8mxU9GM~IP2Im267ztkjhZ3SUSBWv99Ozph3X~FGeqKPVrXNLm-e4MQsS6E-dscd9rZelkqGzVTV7I2zMSBF9E~4w__&Key-Pair-Id=KUT5TJCACFTXG","Representative Wayne Johnson moved House File 19‑65 forward for later consideration on March 27, 2025, asking the committee to preserve funding for the Department of Employment and Economic Development’s Small Business Assistance Partnerships program.

The bill would maintain the funding level for the program that contracts with nonprofit economic development organizations and community development financial institutions to provide free technical assistance to entrepreneurs across Minnesota.

The program “is a cornerstone of DEED’s small business programs,” Johnson said, and he called attention to local partnerships that deliver services in Greater Minnesota and the Twin Cities metro. He told the committee that the program helped create or preserve more than 20,000 jobs in 2023 and leveraged about $158,000,000 in public and private financing, according to a handout submitted to the committee.

Michelle Morozki, interim executive director and business development manager for Kandiyohi County Economic Development, urged support for House File 19‑65 and asked the panel to preserve the 2023 funding level. “Since 2021 Elevate CBA has helped over 100 Kandiyohi County entrepreneurs graduate from a 12‑week business development course leading to more than 35 new small businesses in Kandiyohi County,” Morozki said. She requested a one‑time investment of $7,400,000 to maintain the program’s work.

Janet Grama, founder of Patient and Bubbles Childcare in Mankato, described the local need for childcare and how technical assistance helped open her business. Lee Hall, founder and CEO of Nextage, and a speaker for the Economic Development Association of Minnesota’s government relations committee, described the importance of steady funding so service providers can remain viable and continue serving entrepreneurs in underserved communities.

Committee members asked no formal questions after testimony. Chair Baker said the committee would hold House File 19‑65 for further consideration at a future meeting.

Votes at the hearing were procedural: Representative Wayne Johnson moved the bill forward; the motion was accepted and the bill was laid over for further consideration by the committee.","Representative Wayne Johnson asked the House Workforce, Labor, Economic Development and Finance Committee on March 27 to preserve 2023 funding levels for the Department of Employment and Economic Development’s Small Business Assistance Partnerships program.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6621770,"Committee hears broad support for teacher apprenticeship proposal; DE3 amendment adopted and bill held over",5257,5263840,6425,"/Search/View?dp=1&key=2796530-84b049629c4b4e73f88a688c07857449&start=5263&end=6","https://assets.pipeline.soar.com/2796530-84b049629c4b4e73f88a688c07857449/thumbnail_5263840.jpg","/articles/6621770/Minnesota/Committee-hears-broad-support-for-teacher-apprenticeship-proposal-DE3-amendment-adopted-and-bill-held-over","https://secure.pipeline.soar.com/6621770-ea4aa8ee1f2eb039a8505860dbdd6fcf/orig.mp4?Expires=1773618392&Signature=ScIAxB4S-1ilTZ99YRJZONpXyldHW4fc-JRNKvOdWuKGNbuC0uo7F5entYAjy9xdDu57HmDZMxMLC6m4IDxTdUXCKMTUvW3ABx6w6q7~5dZp21tgeEU4QcSPQlN80mJ9mEgd6ikcL3HV6b7B7RBIuhaW6326kcz3QJsif3vKjy3b8YsTnluNQJO-xjYmhMFe7AFUwF3kwsQp9deTZTu-fdhig6ixeSWG1WFtnEGx0i8Kit5-dE1Yc2E4i51h1ZBjSQfzafKohdv8TEHP9TVzNGAPjeURxc35LV32sBLMqsZ8~k38wcxkFzHMn~LvmGs4p-WqREh2UmYxTlfM8y02-A__&Key-Pair-Id=KUT5TJCACFTXG","Representative Raymond Mueller (Representative Mueller) presented House File 15‑38, an author’s amendment (DE3), and asked the committee to adopt the amendment and advance a registered teacher apprenticeship proposal intended to expand pathways into teaching, including for paraprofessionals and other school staff.

The committee adopted the DE3 amendment by voice vote before testimony. After the amendment was adopted, witnesses described multiple registered apprenticeship efforts underway in Minnesota, including models run by Brightworks Educational Cooperative, Minnesota State Mankato, the University of St. Thomas, and University of Minnesota campuses; district sponsors described pilots that combine job‑embedded instruction with university coursework leading to licensure.

Caitlin Snyder of Education Minnesota said she had planned to support the original idea of a competitive statewide JATC structure but raised concern that the amendment as written would make a single cooperative the statewide fiscal sponsor. “Unfortunately today, the amendment instead says that one cooperative will be able to perform this work across the state,” Snyder said, and she urged protections for collective bargaining and local contract enforcement.

Brightworks teacher‑apprenticeship liaison Gina Boots described building a Joint Apprenticeship Training Committee (JATC) with equal representation of labor and management and said Brightworks planned multiple partner districts and university partners for fall cohorts. Erin Larson, director of apprenticeship at the Department of Labor and Industry, advised that many program elements included in the bill already exist in Minnesota apprenticeship law (Minn. Stat. ch. 178) and recommended streamlining language so grants fund programs run “in accordance with chapter 178,” and suggested broadening eligible uses so districts can participate more easily.

District leaders and university partners described pilots with cohorts of paraprofessionals and district employees pursuing dual licensure and bachelor’s completion while working a teacher calendar. Northeastern Metro Superintendent Veil Raybo (transcript speaker) said a 21‑apprentice cohort is on track and that the two‑year, job‑embedded model meets state licensure requirements for specialized special‑education licensure areas.

Representative Mueller asked that the bill be held over for further consideration; the committee laid House File 15‑38 over after testimony and the DE3 adoption.

No final appropriation was adopted at the March 27 hearing. Committee members asked for continued technical work with DLI and stakeholders to coordinate statewide governance, fiscal sponsorship and collective‑bargaining concerns.","The committee adopted an author’s amendment and heard testimony March 27 on House File 15‑38, which would fund and coordinate registered teacher apprenticeship programs intended to expand the pipeline into teaching and specialized licensure areas.","actionData","errors"]

Article not found

DEED outlines financial stress at Vocational Rehabilitation Services; lawmakers press for answers

Committee hears bill to maintain funding for DEED small-business assistance program

Committee hears broad support for teacher apprenticeship proposal; DE3 amendment adopted and bill held over