District cautions budget uncertainty as state debates unemployment-insurance funding

Sartell-St. Stephen finance staff told the board the district is awaiting action at the state level that will affect its 2025-26 budget, particularly funding to cover school-related unemployment insurance costs.

"We need another $30,000,000 to get through this coming year," a district finance presenter said, describing an estimated statewide funding shortfall and competing proposals in the Legislature. The presenter said one approach would add approximately $30 million in the education omnibus bill to cover unemployment insurance for the coming fiscal year; another proposal would use a transfer tied to a rail project and other sources and could provide a larger, multi-year allocation.

Board materials and presenters said both approaches carried timing questions: some provisions had passed one chamber but not been signed by the governor. Presenters said a special session was possible but not imminent and that the district's finance and personnel committee planned to meet June 4 to analyze how outcomes would affect local planning.

Finance staff outlined the scale of the issue as discussed in the Legislature: an existing balance of roughly $32 million remained for the program, an additional $100 million transfer had been proposed by some lawmakers and a combined proposal could provide about $132 million to cover two years, depending on final language. Staff cautioned those figures and timing were subject to change as bills moved.

The board discussed timing and potential next steps for the district budget; no formal budget decision was taken at the meeting. District staff said they were preparing budget scenarios and would report back after committee review and any legislative action.