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Committee hears bill to extend funding for summer unemployment insurance for hourly school workers
Summary
House File 2,210 would appropriate one‑time state funds and authorize a local levy option to cover summer unemployment insurance (UI) costs for hourly school employees. Testimony from education support professionals and school finance officials described the benefit as necessary to retain staff and avoid service disruptions.
The House Education Finance Committee on March 18 heard House File 2,210, a bill to provide one‑time appropriations and a long‑term local levy option to cover summer unemployment insurance costs for hourly school employees, including bus drivers, paraprofessionals, food service workers and other education support professionals.
Representative Rehm (bill presenter) told the committee the 2023 legislature established summer‑term unemployment insurance for hourly school workers and created a special revenue fund; House File 2,210 would appropriate additional funds to cover remaining expected costs and permit districts to levy for UI costs in future years if state funding is not provided.
What the bill would do: The bill includes a one‑time appropriation of $30,000,000 in fiscal year 2026 to cover projected remaining costs for the summer of 2025, and $70,000,000 in fiscal year 2027 to cover estimated costs for summer 2026, according to the bill summary presented in committee. The bill also authorizes school districts to include summer‑term UI costs in a local unemployment insurance levy beginning in fiscal year 2028.
Testimony: Multiple hourly school employees and administrators urged passage or state funding to avoid staff turnover. Ann Krampitz, a behavioral interventionist in Owatonna, said the UI benefit "made it easier" for long‑time staff to return each fall, describing the benefit as essential for staff retention and mental‑health breaks. Kristen Scott, a special education paraprofessional in Elk River, said summer UI "help[s] me bridge the gap and assist me… in providing for my family" and that losing the benefit could force many hourly workers to leave school employment. Kat Briggs, a school bus driver in ISD 196, described partial unemployment in summer weeks as providing critical, modest income that allows her to care for family and continue in her job.
State view and fiscal math: Sami Grama of the Minnesota Department of Education said MDE generally supports additional UI aid for hourly workers and noted that the governor’s budget also includes a $30,000,000 one‑time FY26 appropriation toward the same purpose. Grama presented projected usage figures: roughly $44,000,000 in UIA use in FY24 and a projected $58,000,000 in FY25 based on district feedback.
Local boards and levy option: Denise Dietrich of the Minnesota School Boards Association urged state funding rather than shifting costs to local property taxpayers, warning that a levy‑based approach would have unequal impacts on property‑poor districts. Other superintendents and treasurers described administrative burdens and the difficulty of absorbing UI payments in general funds.
Outcome and process: The committee received testimony and the bill was put over for possible inclusion in the education finance omnibus. Earlier in the hearing members adopted a DE1 amendment to the bill (voice vote) before the bill presentation; Representative Rehm indicated the DE1 was intended to shape the bill for fuller committee discussion.
Sources: House Education Finance Committee hearing, March 18, 2025; testifiers included Representative Rehm (presenter), Ann Krampitz (Owatonna behavioral interventionist), Kristen Scott (Elk River paraprofessional), Sami Grama (Minnesota Department of Education), Denise Dietrich (Minnesota School Boards Association), Noel Schmidt (Rock Ridge superintendent), Kat Briggs (ISD 196 bus driver).
