Video & Transcript Research : 'PERA'
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MN
Minnesota 2025-2026 Regular Session
House Workforce, Labor, and Economic Development Finance and Policy Committee 1/23/25
Workforce, Labor, and Economic Development Finance and Policy
Transcript Highlights:
- , so when we cost a contract during negotiations, we account for all the taxes, whether it's FICA, PERA
Summary:
The committee opened by approving the January 16 and January 21 minutes. Members then heard testimony focused on the impact of Earned Sick and Safe Time (ESST) and the proposed paid family and medical leave program on Minnesota school districts, with the chair framing the hearing as an opportunity to hear from major employers and school leaders about costs and operational effects.
Kimberly Lewis, speaking for the Minnesota School Boards Association and related school administrator groups, said districts generally already provide generous, locally negotiated sick leave and had initially adapted to ESST by separating vacation, sick time, and ESST into different buckets. She argued that a 2024 law effectively converted previously bargained sick leave into ESST, which she said undermines contracts, creates large unfunded costs, and may raise constitutional contract-clause concerns. Lewis cited large accumulated leave banks in some districts, increased sick leave use, and estimated significant costs from paid leave, including a reported $2.5 million impact for one large district. She urged flexibility such as prorating ESST for midyear hires and part-time staff and exempting coaches, short-term substitutes, and similar employees from ESST.
Superintendent Anarie Fuco of St. Michael-Albertville said her district expects about $400,000 in added fiscal 2026 costs from ESST and paid leave, plus indirect costs from substitute coverage and increased absenteeism. She said schools already have generous bargaining agreements, but the new laws reduce verification and require districts to track leave for temporary staff, creating what she described as a need for “substitutes for our substitutes.” Fuco said the district would face more than $211,000 in direct payroll costs from paid leave alone and asked for flexibility or exceptions for districts already offering comparable benefits. Members asked follow-up questions about how substitute teachers accrue leave and how many districts may be cutting budgets; Lewis and Fuco said many districts are making cuts and that substitute and staffing burdens are growing. A third testifier began by Zoom, but the transcript cuts off before her full testimony.
MN
Minnesota 2025-2026 Regular Session
Legislative Commission on Pensions and Retirement - 04/01/25
Minnesota Senate Floor Meeting
NH