Senate GOP reveals plan to resolve unemployment fund deficit

ST. PAUL, Minn. (AP) — Minnesota Senate Republicans on Monday released a $2.73 billion proposal to repay the state’s debt to the federal government for unemployment benefits during the pandemic and prevent a looming tax hike on businesses.

Minnesota’s unemployment trust fund swung from a $1.7 billion balance in January 2020 to a deficit of $1.2 billion. More than 1.3 million Minnesotans applied for unemployment benefits from the start of the pandemic through September 2021 as businesses closed or laid-off workers.

GOP senators and House Democrats have both signaled support for paying back the debt and replenishing the trust fund early during the session.