Minnesota lawmakers near deal on $250 million in pandemic bonuses for essential workers

Minnesota lawmakers are close to a deal that will deliver $250 million in COVID-19 pandemic bonus pay to essential workers, a key puzzle piece as the divided Legislature races to avoid a July 1 government shutdown.

House Speaker Melissa Hortman said a nine-member panel will be appointed to make recommendations by Labor Day on which essential workers should qualify for a bonus. Gov. Tim Walz, the House and the Senate will each appoint three members, she said.

"There’s no shortage of heroes," Hortman, DFL-Brooklyn Park, told reporters Tuesday. "The question is who will fit into the category and how will we determine how much to give each individual. That is a difficult thing."

Senate Majority Leader Paul Gazelka said the money will come from the American Rescue Plan stimulus that Congress passed earlier this year.

"We’re acknowledging that there are a lot of people on the frontlines of this -- long-term care facilities and others -- that we want to say yes, we acknowledge that you were there and we want to give a bonus," said Gazelka, R-East Gull Lake.

Hortman said the House DFL would prioritize essential workers who are lower paid, who didn't receive paid time off if they got sick or had to quarantine, and who were at the most personal risk by showing up to work.

K-12 budget deal reached

Also Tuesday, lawmakers announced a breakthrough in K-12 funding, agreeing to give a 2.5 percent increase for the 2021-22 school year and a 2 percent bump the year after that. They did not immediately say how that translated to per-pupil spending.

Senate DFL Leader Susan Kent said she expected the deal would save jobs in the classroom after teachers across the state received layoff notices in recent weeks.

"It’s a matter of degree because some districts are in worse shape than others in terms of the cuts they were having to make, but yes, I think this means that some teachers will be able to keep their jobs," said Kent, DFL-Woodbury.

The agreement does not include Senate Republicans' top priority, private school vouchers, because Democrats blocked them. Under the GOP proposal, if parents moved a student out of public school, the state's per-pupil funding would have followed the student.

"You can ask the governor and the House why that had to come out," Senate Education chairman Roger Chamber, R-Lino Lakes, told reporters. "We had to remove it to get something done. They would not move forward and have any negotiations about parent choice."

Lawmakers have now sent three of the 14 budget bills -- higher education, agriculture, and legacy funding -- to Walz's desk. They've reached deals on several others. Three bills aren't finished, including the public safety budget that's been held up by negotiations over police oversight changes.

Lawmakers must pass a budget by July 1 or any government agencies that aren't funded shut down.