Minnesota Lawmakers Divided on Education Funding

Strategic Insights -

Tensions arose in the Minnesota State Legislature as lawmakers debated and voted on education funding bills. The disagreement centered around unemployment benefits for hourly school workers, funding for private schools, and special education transportation reimbursement. The Senate and House proposals differed significantly, posing a challenge for Governor Tim Walz to sign a final bill. Amidst the debate, concerns were raised about wasteful spending and the need for more efficient grantmaking.

Key Takeaways:

  • The Senate and House have proposed different education spending bills, with the Senate's $25.7 billion two-year plan and the House's $25.8 billion two-year plan.
  • The Senate wants to allocate $70 million for unemployment benefits for hourly school workers in fiscal year 2027, while the House bill sunsets this funding.
  • Republicans have proposed an amendment to redirect $100 million from jobless benefits to private schools, which failed on a party-line vote.
  • Governor Walz's budget recommendation reduces reimbursement for special education transportation funding from 100% to 95% in 2026 and to 90% in 2027.
  • Lawmakers are considering turning grantmaking power over to state agencies to combat waste and fraud.
  • The House wants $40 million for the READ Act, which provides teacher training to help students score better on standardized reading tests.

Statistics:

  • The state has spent $57.5 million on unemployment benefits for hourly school workers, according to the Minnesota Department of Education.
  • The House bill proposes cutting reimbursement for special education transportation funding by $29 million over two years.
  • The proposed budget would save $54 million over two years by reducing reimbursement for special education transportation funding.
  • The Senate bill immediately ends millions of dollars in specific grants for Junior Achievements North, the Minnesota Alliance Boys and Girls Club, Starbase Minnesota, and Girls Taking Action.

Sources:

  • MinnPost 'Schools funding vexes, divides Minnesota state lawmakers' (2025)
  • Minnesota Department of Education
  • Institute for Nonprofit News' On the Ground news wire