House Ways and Means panel backs $100 million to cover summer unemployment for hourly school workers

The Minnesota House Ways and Means Committee on May 15 recommended House File 1143, as amended, for placement on the general register by voice vote. The DE3 amendment to HF 1143 would appropriate $100 million from the general fund to the school unemployment aid account to fund unemployment benefits for hourly school employees, including bus drivers, paraprofessionals and food-service workers, who rely on unemployment insurance during the summer months.

The amendment’s sponsor said the appropriation "is a hundred million dollar appropriation that funds the unemployment insurance aid account" and that it "provides state funding to our school districts to support the bus drivers, the paras, the food service workers who rely on unemployment insurance as a lifeline during the summer months." The sponsor said a portion of the funding comes from the Northern Lights Express (NLLX) account and that the amendment realizes $22 million in savings by shifting certain costs.

Nonpartisan fiscal staff explained how the change interacts with the state’s education forecast. Solveig Beccle, House Fiscal, said the amendment transfers $100 million from the general fund to the special revenue account for hourly-worker unemployment insurance and reduces special education expenditures in the forecast because some costs districts previously billed to the special education formula would instead be covered by the new appropriation. Beccle said that accounting interaction yields net $0 change in fiscal years 2026–27 but produces savings in later years.

Beccle described current account balances and needs: the original transfer of $135 million appropriated in fiscal 2024 left a remaining balance of about $33 million going into fiscal 2026; projected need for fiscal 2027 and the biennium was stated as roughly $133 million total, with an anticipated $70 million needed in fiscal 2027. By adding $100 million to the existing $33 million balance, fiscal staff said the account would be fully funded for the 2026–27 biennium.

Christina Perra of House Research clarified who receives reimbursements. Perra said the school unemployment aid account reimburses districts, charter schools and intermediate districts; it does not provide direct payments to independent contractors, even if those contractors pay into the UI trust fund.

Committee members voiced general support for holding school districts harmless, while some members expressed concern about the source of the offset. Representative Cagle said he was "disappointed to see this come from the Northern Lights Express," but called the expenditure "a worthy cause" if the NLLX account would still retain funding to match any awarded grants. Representative Krisha, speaking as a Ways and Means member, urged more certainty in budgeting and warned against repeatedly moving funds late in the process.

Representative Stevenson, in closing remarks, said the bill provides certainty for districts and a "lifeline" for workers dependent on partial wage replacement over the summer.

Committee action: the committee adopted the DE3 amendment and then, by voice vote, recommended HF 1143 as amended for placement on the general register. The motion was renewed and approved with the instruction that nonpartisan staff make technical changes necessary to reflect the committee’s will. The committee recorded the outcome as the motion prevailing on a voice vote; no roll-call vote was taken.

Votes at a glance

- House File 1143 (DE3 amendment): Recommended for placement on the general register. Motion renewed and approved by voice vote. No roll-call tally recorded.

Background and next steps

HF 1143 as amended would rely on a combination of the newly appropriated $100 million and existing special revenue fund balances to reimburse school districts for certain unemployment costs for hourly school workers for the 2026–27 biennium. The measure was advanced to the general register, where it may be scheduled for floor consideration and further action by the full House. Nonpartisan staff were instructed to make technical adjustments to reflect the committee’s intent.