Governor’s 2025 education budget proposes cuts to QComp, special-education transportation and nonpublic aid; MDE and educators push back

The Minnesota Department of Education on Feb. 11 presented Gov. Tim Walz’s 2025 education budget to the House Education Finance Committee, proposing a mix of one‑time investments and ongoing reductions intended to help the state balance large projected deficits in later biennia.

The governor’s package includes one‑time boosts — a $30 million deposit to the special revenue fund to cover projected summer unemployment insurance (UI) costs for hourly school workers in fiscal 2026 and a compensatory‑revenue hold harmless estimated at about $39.7 million in fiscal 2026 — paired with reductions the department says are needed to close mid‑ and long‑term shortfalls. The proposal would cut special‑education transportation reimbursement to 95% in fiscal 2026 and 90% in later years, eliminate nonpublic pupil aid and nonpublic pupil transportation aid beginning in fiscal 2026, and end the QComp alternative teacher compensation program on June 30, 2026.

Why it matters: Minnesota faces a sizable projected budget gap later in the decade; committee members and witnesses said the package forces difficult choices with direct consequences for classroom staffing, student services and school budgets.

The Department framed the proposals as a starting point for negotiation. “This is a starting place for a conversation around this incredibly important and difficult task,” Commissioner Willie Jett told the committee. He said the budget…