Divided Minnesota House spars over jobless benefits for hourly school workers as end of session looms

CBS News

01-05-2025

Budget negotiations in the divided Minnesota Legislature are already growing more tense and face roadblocks during the crucial final few weeks of session, as Republicans and Democrats sparred Wednesday over jobless benefits DFL lawmakers recently approved for school workers.
Employees like bus drivers and teacher aides weren't eligible for unemployment insurance during summer break until a 2023 law expanded eligibility. The newly empowered GOP in a tied House, which could do little in the last two years when Democrats called the shots, wants to repeal that law. Workers say the change has provided a lifeline.
The education spending proposal — agreed to by the GOP and DFL co-chairs of that committee — would undo it after the summer of 2028 and provide some additional state funding to cover those benefits in the meantime. But in a heated rules committee meeting Wednesday, Democrats voted against bringing that bill to the floor this week to instead renegotiate its terms before it goes to the House floor, drawing a sharp rebuke from Republicans.
"You don't like that this caucus stood up for working families last session," said Rep. Michael Howard, DFL-Richfield, during the discussion. "You want to go back and relitigate what happened in 2023, but our job is to balance this budget, and it's a matter of fact that the provision that you all don't like is not a line item to balance our state education budget."
Republicans criticized Democrats for backing out of that agreement and accused them of "obstructing" the end of session, which must conclude May 19. If they don't complete the work of passing a budget, they'll have to go into a special session to approve one by June 30 or the government will shut down.
"That was a signed agreement between the co-chairs. It was part of a bill that passed out of the Ways and Means Committee yesterday, and then Democrats have apparently reneged on that agreement," said Rep. Harry Niska, the GOP leader from Ramsey, told reporters. "And so that's a big setback in terms of being able to get our work done by May 19."
Both the House and Senate have begun passing budget bills focused on particular spending areas — like transportation, commerce, and housing — which will send the proposals to conference committees for the chambers to hammer out the details to find an agreement, so negotiations are far from over as lawmakers sprint towards adjournment.
Separately, House Republicans are also pushing for changes to the state's paid family and medical leave program that's not even off the ground yet — either by delaying implementation or changing the scope of the law. Minnesotans will start to get benefits on Jan. 1 and that's when the payroll tax kicks in to fund it, which can be split evenly between employers and employees.
"What was passed is not affordable. The cost has already been raised on businesses, the taxes already increased, and we know that taking 20 weeks off is not going to be sustainable," said House Speaker Lisa Demuth, R-Cold Spring.
DFL Gov. Tim Walz said his administration is focused on getting the program up and running but is open to discussion about tweaks to paid family and medical leave so long as it improves the law.
"I'm not interested in weakening it. I'm not interested in giving less benefits to the Minnesotans who wanted this. Overwhelmingly, this is one of the most popular proposals we put forward. But if it makes it better, certainly," Walz told reporters.
Republicans so far this session have unsuccessfully tried to delay the program by one year. Bills need bipartisan support in order to advance off the floor and Democrats are staunchly opposed to changes to the law, which was a top priority item for them two years ago and supported by a majority of Minnesotans in public opinion polls.