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Senate discussion of S.37 highlights uncertain costs of summer unemployment benefits for school staff
Summary
Committee testimony on S.37, which would expand unemployment insurance access for school and support staff in summer months, referenced Minnesota’s experience and projected Vermont net costs between $5.6 million and $8 million; witnesses also raised turnover and retention concerns that are not yet quantified.
Senate bill S.37, an act relating to unemployment-insurance eligibility and benefits for school and support staff, prompted testimony about costs and workforce impacts when the Senate Committee on Economic Development, Housing and General Affairs considered the proposal, legislative intern Helen R. Graves reported to the House Commerce & Economic Development Committee on Feb. 28.
Dave Camper of the Economic Policy Institute summarized Minnesota’s experience after a similar law took effect: Minnesota’s program saw higher costs than projected, costing about $38.7 million in 2023 compared with a projected $32.8 million, Graves reported. Camper and committee materials noted Minnesota’s net benefit figures for employees and the higher recipiency rate in Minnesota (about 56%) compared with Vermont’s estimated recipiency rate (about 32%). Using those parameters, Graves said the committee heard Vermont’s net estimated benefits would range from $5.6 million to $8 million — a figure the committee framed as a potential cost to school districts.
School staff who testified described turnover and retention pressures. Monique Beaudry, an administrative assistant at Woodbury Elementary, told the committee that turnover creates instability and retraining costs for schools. Becky Pellegrini, a paraeducator at Berlin Elementary School, said she and colleagues often hold additional jobs and that family health insurance coverage can be unaffordable on paraeducator pay. Mandy Black, a paraeducator at Rutland Public Schools, described current staff shortages — the district is down three paraeducators this year and others have resigned.
Senator Clarkson observed that turnover costs and the potential increase in unemployment-insurance costs are competing fiscal challenges for districts; the record does not include a district-level estimate for turnover-related expenses.
Why it matters: S.37 would directly affect school staffing economics and district budgets; the committee heard contrasting evidence about likely costs and workforce benefits, and several witnesses warned that retention pressures are severe in some districts.
