Democrats claw back education funding bill over end to unemployment benefits for school workers

The fate of a bill funding public schools is up in the air after Democrats pumped the brakes on it on Wednesday.

All DFL members of the House Rules Committee objected to advancing the bill to a floor vote, raising concerns about a provision that would end unemployment insurance benefits for hourly school workers like bus drivers, custodians and classroom paraprofessionals.

The coverage for those workers was a key achievement for Democrats under full DFL control at the Capitol in 2023. Under a current House tie, committee co-chairs — one Democrat and one Republican — proposed to sunset it in 2029.

But Democrats derailed the broader education funding bill, saying the move to strike the policy should be reconsidered.

“We made sure that our paraprofessionals, our school bus drivers, the people that care for our kids, are able to get insurance,” Rep Mike Howard, DFL-Richfield said before addressing his Republican colleagues directly. “You all want to stick it to working people, and that's what we are standing up for. We can pass the education budget tomorrow. All you have to do is look forward instead of look backwards.”

Republicans want to end the coverage. They say they’re responding to school districts facing budget shortfalls and confronting more layoffs in some districts. The unemployment benefits come out of a dedicated fund, but employers pay premiums based in part on the number of their staff who use benefits.

Republicans are also trying to revisit new curriculum and service requirements for schools passed under DFL control.

“If you're going to stick that one back in, what other mandates are you going to work back so our school districts don't continue to be in a deficit position where they're going to have to pass that down to the property taxpayers?” Rep. Peggy Scott, R-Andover, asked the panel. “What is your solution?”

The dust-up comes after lawmakers had moved several pieces of the budget dealing with veterans affairs, agriculture, commerce, housing, transportation and more. They’ve yet to approve the biggest pieces of the state’s next two-year spending plan, which focus on health and human services, education and state government. The education proposal, which funds programs from preschool to high school and beyond — is expected to approach $26 billion in size over the next two years.

House DFL Floor Leader Jamie Long, DFL-Minneapolis, said Democrats are still working on the bill but several members couldn’t stomach removing the unemployment insurance provision. 

Long and others defended the program, saying it provided stability for workers and lower staff turnover for schools. He expressed optimism that they’ll keep at it, and hopefully adjourn on time. But he said he worried about Republicans holding budget bills “hostage” over policy demands.

GOP leaders said the slow down on the education spending plan could eat into the roughly 19 days left in the legislative session.

“That's a big setback in terms of being able to get our work done by May 19,” said House GOP Floor Leader Harry Niska, R-Ramsey.

Lawmakers have an adjournment date of May 19 and could face a state government shutdown if they can’t pass a budget before July 1.

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