Schools react to funding for summer unemployment insurance

Area school superintendents expressed relief that the Minnesota Legislature provided funds for the summer unemployment insurance program for school districts but said that the legislation will not solve the problem long term.
The Minnesota State Legislature adjourned May 19 without finalizing a state budget but an education bill that would provide an extra $100 million to the summer unemployment insurance program did pass. The program provides unemployment insurance during the summer months to part-time school employes including custodians, paras and lunch workers, but only for a limited time.
Local superintendents say they appreciate the funding to reimburse districts, but a permanent solution is still needed to cover the cost in years to come.
“Adding money for the Unemployment Insurance will definitely be a help for this upcoming year with our financial situation,” said Byron Supt. Dr. Mike Neubeck. “However, we understand that this may be only a short-term fix and not a total solution. This type of unfunded mandate, along with others in the future, will be detrimental to our budget.”
Triton Superintendent Craig Schlichting and Hayfield Superintendent Gregg Slaathaug both agreed with that assessment.
“Ultimately, it is a short-term fix to the funding of UI,” Schlichting said. “Without this money, the cost of the mandate will fall back onto the school district’s budget.”
“The legislature allocated funds for summer unemployment programs for schools, which they are responsible for providing according to their own planning and mandates,” Slaathaug said. “They also established a sunset date for these provisions, indicating that individuals would receive unemployment benefits during the summer, with plans to conclude these benefits a few years later. Their mandates have created challenges for school districts and, more importantly, for affected individuals.
“It is hoped that, in future legislative sessions, greater discretion will be exercised to better address these issues.”
The legislation passed by the state does provide additional money to reimburse school districts for the cost. That state funding, however, is scheduled to expire in 2028. At that point, school districts will be on their own and will need to budget for the insurance costs.
School officials throughout the state have said that unfunded state mandates have contributed to the financial problems that many districts are facing.