PRESS RELEASE: Unemployment Mandate Must End

FOR IMMEDIATE RELEASE

Laura Knudsen, Alexandria School Board Director

Unfunded mandates unfairly complicate school budgets and force political control over local school board leadership.

Unemployment Mandate Must End

Alexandria, MN – May 4, 2025 

There is a significant financial burden posed by Minnesota’s mandate requiring public schools to fund summer unemployment benefits for part-time, seasonal employees hired for the nine-month school year. With the Minnesota state legislature set to revisit this issue tomorrow, May 5, 2025, I urge lawmakers to eliminate this unsustainable policy before temporary funding expires.

Minnesota schools cannot afford to pay unemployment benefits to employees knowingly hired for the time frame of the academic year. The 2023 law, which extends unemployment insurance to hourly school workers like bus drivers, paraprofessionals, and cafeteria staff, was initially supported by $135 million in state aid through 2027 or when the funds ran out. Current estimates project $102 million of that aid will be distributed by the end of 2025, only $33 million will remain for 2026. 

The cost of the program has been rising each year as more hourly employees learn they are eligible for the benefit. Against an estimated cost of $63 million projected for 2026, the state currently does not have enough funding to cover the mandate. Unless something is done these costs will quickly shift to school districts already facing budget shortfalls.

As a former paraprofessional in the Alexandria school district, I understand the value of these roles. I also understand the attractiveness of the nine-month schedule. Having summers off was the perfect situation for a mom with school-aged children. As my children grew older, I remained a para, finding other employment for the summer months. This flexibility has long been a benefit for employees. While providing unemployment would be desirable if school funding was unlimited, the mandated benefit undermines the financial stability of our schools.

The mandate has also led to unintended consequences. Since its enactment two years ago, school districts across Minnesota have reported an increase in employee resignations in the first weeks of the new school year. Rather than resigning at the end of the academic year, some employees are collecting summer unemployment benefits before submitting resignations, leaving schools unexpectedly short-staffed as classes begin. This disrupts the learning environment and strains district resources.

The legislature’s recent inability to move the education funding bill forward highlights the contentious nature of this issue. The House education funding bill, which included a provision to sunset the unemployment benefits program, was stalled after Democratic lawmakers rejected the compromise, preventing the bill from reaching the House floor. With the legislative session nearing its May 19 adjournment deadline, resolving this disagreement is critical to finalizing the state budget.

The Alexandria school district is the third largest employer in our area. We have many valuable hourly employees working to support the education of our students. I wish it wasn’t the case, but providing summer unemployment benefits is too large a financial burden that, long term, will likely shift funds away from the classroom.

Minnesota legislators need to eliminate this mandate to protect our schools’ ability to prioritize student education. We must find balanced solutions that support our valued employees without compromising the financial health of our districts.