MINNEAPOLIS (WCCO) – Future layoffs are expected at the Minnesota Zoo thanks to slumping attendance and rising operating costs.

Zoo officials confirm the layoffs are coming, but the exact time and how many people will be affected is not known.

Expense reductions like trimming the marketing budget and leaving vacant positions open hasn’t been enough to prevent layoffs.

Increased costs to employee salaries, animal feed and energy prices are also playing a factor.

Attendance at the zoo was down nearly five percent in all this summer.

NEW YORK (AP) — General Mills plans to cut 700 to 800 jobs, the second time it’s trimmed its work force in a month, as the food company wrestles with a shift by U.S. consumers away from boxed or frozen meals.

The Minneapolis company expects about $135 million to $160 million in restructuring charges. It foresees annual cost savings of approximately $125 million to $150 million, starting in fiscal 2016.

General Mills Inc. anticipates the current restructuring to be completed by fiscal 2015’s end.

The company has said it’s begun a formal review of its North American manufacturing and distribution network, along with a pair of announcements in recent months about cost-cutting initiatives.

(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) — After a year filled with scrutiny and scandal, the Archdiocese of St. Paul and Minneapolis says cuts are coming.

The archdiocese will cut more than $5 million, or about 20 percent from its budget.

That will include job layoffs, starting this month.

Church officials say their current operational budget wasn’t sustainable on top of the legal fees surrounding dozens of allegations of child abuse by clergy members.

The archdiocese says individual parishes and schools will not be affected.

ST. PAUL, Minn. (AP) — A Democratic state senator will buck her party’s historical alliance with the Minnesota teachers union and push to drop seniority as the main determinant in teacher layoffs.

Sen. Terri Bonoff will formally introduce a bill aimed at the “last in, first out” layoff system common across Minnesota on Thursday. The Minnetonka lawmaker’s bill would have schools consider subject area and effectiveness in deciding layoffs, in addition to any other locally agreed criteria.

Bonoff’s bill is similar to one House Republicans introduced last week. Two Republicans were listed as co-sponsors of Bonoff’s bill, and its success in the Democrat-controlled Senate will rest largely on how many in her party she can win over.

This is not the first time a fight over teacher layoff policies has reached the Capitol. Democratic Gov. Mark Dayton vetoed a Republican push to ax the seniority-based system in 2012 and recently lashed out at a conservative group calling for its removal.

In a letter explaining his 2012 veto, Dayton called that bill — which also would have made subject area and effectiveness main layoff criteria — untested and vague.

Bonoff said Wednesday she respects teachers but believes performance, not longevity, should determine teacher layoffs.

“I think that’s what serves our students best,” she said.

(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) — Declining attendance and increased costs have the Minnesota Zoo facing a budget crisis.

Zoo officials in Apple Valley have asked the state for $1.5 million in emergency funds to help maintain operations.

The zoo laid off seven employees in October in a round of cuts to save about $500,000.

Zoo attendance fell by 4.5 percent last summer.

Officials say increased food costs and other expenses have added an extra $1 million to their budget.

APPLE VALLEY, Minn. (AP) — A projected budget shortfall could force the Minnesota Zoo to go beyond layoffs and close some of its exhibits this year.

Officials say the zoo is facing a budget crisis due to declining attendance and increased costs. A spokeswoman says the zoo is now asking lawmakers for $1.5 million in emergency funds.

Gov. Mark Dayton says he’s in favor of helping the zoo, but he believes officials could have done a better job with the budget.

Rep. Anna Willis of Apple Valley says she thinks the zoo will receive money from the state, but the amount is unclear.

The Minnesota Zoo is a state agency with an annual operating budget of $25 million. Seven zoo employees were laid off in October through a round of cuts aiming to save about $500,000.

(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) - Minnesota lawmakers are preparing to vote this week on a top Republican priority that could affect every school in the state.

The bill would allow school districts to lay off ineffective teachers even if they have union seniority and classroom tenure.

Staff reductions hit Minnesota schools hard during the last few years of recession.

Now, a plan at the capitol would turn layoff rules upside down and make teachers with seniority as susceptible to layoffs as rookies.

Hundreds of Minnesota teachers are laid off every year. It’s a hard move, made even harder by last-in, first-out layoff laws and union rules.

Lynnell Mickelsen raised three boys in the Minneapolis public schools, during a time of continuous layoffs.

“We had great teachers who were forced out, we had mediocre teachers who were retained,” she said. “Teachers of color, who were often the last to be hired, were then the first to be pushed out.”

The bill in the Minnesota House requires school districts to use teacher performance evaluations when deciding who to lay off, regardless of how long the teacher has been in the classroom.

The state’s largest union of educators says districts can already negotiate performance into contracts but requiring it statewide will pit teacher against teacher.

“It will be about me being better than you, me being better than my colleagues, rather than all of us getting better and improving,” Denise Specht, the president of EducationMN, said.

The state Department of Education reports 2,200 teachers lost their jobs through layoffs since 2008.

Supporters say it is unknown how many good teachers left and how many ineffective ones kept their jobs.

“Every child deserves the opportunity to achieve academic success, and quality teaching is an important part of that,” Rep. Jennifer Loon, R-Eden Prairie, said.

House Republicans aren’t only taking aim at layoff rules: They’re also trying to make it easier for school districts to hire teachers from other states and easier to hire “community experts” to teach in schools, even if they are not teachers.

While it’s true that Minnesota school districts already have the power to negotiate performance into teacher contracts, fewer than half have actually done so.

Meanwhile, there are new teacher evaluation standards in law, but that law did not go into effect until 2012, so there’s been very little time to see if it works.

ST. PAUL, Minn. (AP) — Gov. Mark Dayton said Wednesday he is seeking a meeting soon with Target Corp.’s chief executive about the significant layoff affecting employees at the company’s Minnesota headquarters.

Dayton told reporters that he did not get advance warning of the restructuring that Target executives shared with investors on Tuesday. He said he and Lt. Gov. Tina Smith want to hear directly from CEO Brian Cornell about the discount retailer’s commitment to the state and how it will conduct the downsizing at Minnesota’s largest for-profit employer.

Target announced that it would cut several thousand jobs over the next two years, primarily at its headquarters that now employs more than 13,500 people.

“I think this could have and should have been handled differently, but that’s just my view,” Dayton said as he noted the deep roots and huge presence of the company in the state. He called the layoffs “tragic,” “disruptive” and a result of “mistakes and failures of previous Target management.”

Cornell took the role as Target’s executive in August following a high-level shakeup. Company spokeswoman Molly Snyder was traveling and had no immediate comment on Dayton’s request for a meeting or his assessment of Target.

Dayton’s family, which built a fortune and a legacy in the department store business, had a big hand in founding Target. But its direct ties have since lapsed.

(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) — Target stock closed down slightly a day after the company announced several thousand employees at its Minneapolis headquarters would be losing their jobs.

It’s part of a restructuring plan that the CEO is promising will change how you shop at their stores.

Target is promising more organic and local foods, faster and cheaper delivery of items ordered online and a new emphasis on making it easier for you to shop using your smartphone.

CEO Brian Cornell says these are all things customers want, and Target has not delivered.

Privately, industry analysts put the minimum figure of layoffs at 2,600, which is 20 percent of Target’s corporate jobs in the Twin Cities.

In a presentation to shareholders, Target executives laid out a series of missteps: from failing to embrace online shopping and speedy delivery, to losing its fashion-forward edge.

Cornell says the problem is not the stores, but the headquarters.

“Simplification, cutting complexity at headquarters will make us more competitive,” Cornell said.

Translation? Too many corporate employees at headquarters is not only costing the company in salaries, but slowing down decision making.

“This is probably a great deal of what he learned when he was at Walmart,” University of St. Thomas marketing Professor Dave Brennan said.

He says Cornell is reshaping Target’s management structure to be like Walmart’s. Cornell was previously the CEO of Walmart-owned Sam’s Club.

“What Brian Cornell wants to do is he wants to reorganize, to simplify that structure and to facilitate making faster, quicker decisions and making the action occur,” Brennan said.

Some changes shoppers are already seeing? Target dropped the minimum for free shipping from $50 to $25 dollars just last week.

Other changes will happen at every level as Target revamps not just its corporate staffing, but its corporate culture.

Target Marketing VP Kathee Tesija told shareholders that nothing is sacred.

“We’re putting every part of our go-to-market strategy on the table,” Tesija said.

CEO Cornell is promising that the $2 billion in cost cuts will be invested back into the company in areas like technology, and a big push will be to make it easier to use your smartphone to shop.

This innovation does have a price — jobs at Target’s downtown Minneapolis headquarters.

ST. PAUL, Minn. (AP) —The Minnesota House has passed a controversial bill minimizing the role of seniority in teacher layoff decisions.

School boards would be required to include teacher evaluations in their layoff decisions if the bill becomes law. Republican proponents say that will ensure the best teachers stay in classrooms.

Democrats argue the move would foster competition between teachers. They point out that far more educators leave their jobs due to retirement or personal reasons than layoffs.

The bill also streamlines the licensing process for out-of-state teachers. That provision is aimed at curbing a shortage in areas like math and special education.

Republicans control the House and passed the bill largely along party lines. It faces an uphill battle in the Democratic Senate. Gov. Mark Dayton vetoed a layoff bill in 2012.

(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) - As Minnesota’s governor meets with Target’s top executive, other companies are taking aim at its nervous employees.

Last week, Target announced plans to get rid of several thousand jobs, mostly at its headquarters in Minneapolis. Those cuts will happen over the next two years as part of a cost-reduction and restructuring plan. They come on top of the 550 Minnesota employees Target already let go as it pulled out of Canada.

Target Corporation has a reputation for hiring the best and the brightest from around the country. And recruiters told WCCO that until the recent string of job cuts, it was difficult to lure those workers away from jobs that others envied.

But now there’s an atmosphere of impending doom.

Paul DeBettignies is a recruiter who writes a blog called Minnesota Headhunter.

“Some people are a little fearful, a little scared,” he said. “They are wondering, ‘When are the layoffs going to happen? When is the announcement? How long is that going to take? Is it going to be over a period of months or years.'”

DeBettignies said some Target employees are finding themselves highly sought after.

“If you are a growing company in town, or in or region, and Target has a profile of employees you are looking for, I don’t know why you wouldn’t be reaching out to folks,” he said. “I had a conversation with an IT friend of mine last week. She had about six inquiries in the first three hours.”

Paul said the recession has taught us that companies like Target, General Mills and Best Buy will do what they need to do to keep shareholders happy.

But there are some things that workers do control, he said, such as “being current with one’s career, one’s skill set, LinkedIn profile, resumes, networking, attending events.”

Target will still be hiring people. They will need new employees to be part of the company’s turnaround.

MINNEAPOLIS (WCCO) — On the heels of Target’s announcement to cut thousands of workers over the next two years, Governor Mark Dayton met with Target’s top executive on Monday. Dayton wanted to know the time-table of the layoffs so the state can help with job services. Most of the cuts are expected to be at the corporate headquarters in Minneapolis.

Allina Psychologist Lauren Fogel said there are things employees can do when fearing a layoff. She said it’s important for people to focus on what they can control.

“Whether that’s looking at your finances and budgeting or whether that is starting to put your resume back together,” Fogel said.

Last month, hundreds of Target employees left headquarters with envelopes in hand. Those layoffs were a result of closing stores in Canada. Thousands more layoffs are expected. Once that happens Fogel believes it’s important for those affected to take a day or two to let the information sink in before beginning the job search.

“Have a space where you can sort through what this means, what this looks like for you and your family, and what your next steps may be,” Fogel said.

Job stress can take a toll on other parts of life, and Fogel said some depression, anxiety and the feeling of being overwhelmed is normal.

“It’s really important to know those feelings need to come and be felt in order for you to move on,” Fogel said.

And with that, taking care of oneself is important.

“That might mean making sure that you’re getting your physical activity, making sure that you’re eating properly, getting enough sleep so that you can make good decisions moving forward,” Fogel said.

It may be tough not to take a layoff personally, but Fogel recommends keeping in mind it’s about the company and not the individual, when there’s a company-wide layoff.

MINNEAPOLIS (WCCO) — Target’s massive workforce reduction is the latest milestone in a company that has a long and colorful history in Minnesota.

The Dayton Company, which had popular department stores throughout the Twin Cities, decided to launch something new in 1961 — a discount chain.

The first Target store opened in Roseville in 1962. Target had become the number-one revenue producer of the Dayton-Hudson Corporation by the 70s.

Target set out to convince us it was cool from the start, with weekly ads boasting big savings.

University of Minnesota Professor George John, who studies retail trends, says Target was different from all the rest.

“It wasn’t just a big box with merchandise piled all over the place. They had sort of fashion-forward items in certain categories that were really kind of fashionable, the cheap-chic notion,” John said.

By the 1980s, Target stores could be found across the nation.

“Slowly, all these manufacturers of the big brands let their product become available at these discount stores,” John said. “So the market grows.”

Target offered customers a store credit card in 1995 and opened the first SuperTarget store in Omaha, Nebraska.

“You can see they added pharmacies and they added groceries. That’s the idea, just to get you in the store more often,” he said.

Target was doing so well by 2000 that the Dayton-Hudson Corporation renamed itself Target Corporation to better reflect its core business. One thousand stores were now open.

As the number of stores grew, so did the number of Target employees. A new corporate headquarters was built in downtown Minneapolis in 2001.

But in the late 2000s, as the recession set in, the tides began to turn. Target, like most retailers, found itself struggling.

“It’s just that things change, times change. We don’t eat as much cereal as we used to, so all the food companies are struggling,” John said. “We don’t shop the way we used to because we don’t have as much money in our pockets.”

John doesn’t believe Target got too big. He believes the downturn of the economy took its toll, and that after the company’s restructuring it should continue to be a major retailer.

MINNEAPOLIS (WCCO) – It was a grim day at Target Corporate headquarters Tuesday as about 1,700 employees were informed they were losing their jobs.

In other words, roughly 13 percent of the employees working at Twin Cities headquarters were let go. Target also announced that roughly 1,400 open positions would be permanently closed.

“While today’s news is difficult, it’s important to know that we will continue to make investments in our business and team — particularly in areas such as digital, personalization, data and analytics, and engineering — to position Target for future success,” a spokesperson said in a released media statement. “Today is a very difficult day for the Target team, but we believe these are the right decisions for the company.”

Target said that cut employees would receive more than 15 weeks of pay and additional severance based on how long they worked there. Target will pay their benefits for six months, and they will have access to career placement support.

A filing with the Securities and Exchange Commission indicates that Target will spend approximately $100 million on severance packages for this round of cuts.

“Anytime you reduce the number of employees you have, you’re going to take a big hit up front,” University of St. Thomas Professor Dave Brennan said.

Target recently took a $5.4 billion-hit closing stores in Canada. And now, the reduction of the work force at headquarters by 13 percent. But Brennan says that doesn’t necessarily mean people should be worried about the big-box giant.

“That also means 87 percent of the people are still in Target headquarters, so I think that’s a positive sign,” Brennan said. “I think what it amounts to is that they’ve really had to take some hits internationally and in terms domestically to make this a leaner, meaner organization going forward and to create greater value for their shareholders.”

Brennan thinks there will be more cuts down the road. They will likely be more targeted and not so broad like Tuesday’s layoffs.

Additionally, laid-off Target employees will be able to qualify for unemployment insurance, according to the Department of Employment and Economic Development.

Target employees said that a couple dozen upper managers were let go on Monday. The company said the layoffs were needed to make the company more competitive.

“If you look at what’s being done is they’re delayering, that is having fewer steps in terms of the hierarchy, in terms of the organization,” Brennan said.

He says having more employees does not mean better business.

“It’ll make it much more efficient on one hand because you have fewer people and less cost, but it will also make it more effective because you’re going to be able to act more quickly than you have been in the past,” Brennan said.

In downtown Minneapolis Tuesday morning and afternoon, employees embraced laid-off coworkers and helped them carry boxes and even shopping carts of belongings to waiting cars.

Employees got emails in the morning summoning them to meetings.

“It was very cordial. It was short and sweet,” said Tim Holtgrewe, who worked in Target’s test kitchens for seven years. “The package seemed to be fine. I will go over it with my lawyers; it seemed to be fine.”

While most employees did not want to go on camera, several described tearful and emotional scenes as those who kept their jobs rushed to comfort those who had lost them.

Kathy Dean, a 33-year Target employee, was one of those taking home her belongings. Her husband, Ed Dean, said she was in charge of supplies and setting up meetings for several corporate floors. While Kathy didn’t say anything about her termination, her husband said the severance will help.

“They have been great all along,” he said. “They are a good company, and it will still be a good company.”

Asked if this was it for layoffs, Target responded with a statement that said, in part, “We see Target’s transformation as not a moment in time, but an ongoing journey.”

Following his meeting with Target CEO Brian Cornell to discuss the impact this will have on the state’s economy, Gov. Mark Dayton said Cornell assured him Target will keep a strong presence here in Minnesota.

The silver lining for those whose jobs are affected is that several local and national recruiters, as well as human resources managers here in the Twin Cities, are actively reaching out to Target workers who are looking for new jobs.

MINNEAPOLIS (WCCO) – The massive layoffs at Target headquarters will be felt throughout downtown Minneapolis after 1,700 people lost their jobs on Tuesday.

The reduction means Target’s corporate staff is now 13 percent smaller. The company said another 1,400 open positions will not be filled.

Many businesses rely on Target employees as their primary customers.

Joe Schmidt is the owner of 10th Street Convenience Store in downtown Minneapolis. The business has been at the location for six years.

Schmidt said on a daily basis he gets 300 to 400 Target employees as customers. When he heard the news that hundreds of people had been laid off, he was concerned.

Schmidt said it’s possible that Target’s decision will affect his bottom line.

“You’re constantly trying to get new business in, but you never know what’s going to happen,” Schmidt said. “It may affect my help. I have two other employees. I may have to get rid of one of them just because of Target.”

Schmidt expects the Target layoffs will decrease his store traffic by about 100 customers a day.

Dave Brennan, a marketing professor at the University of St. Thomas, predicts others business will probably see the same fallout.

ST. PAUL, Minn. (AP) — Education advocates dueled Thursday as a Minnesota Senate committee took its first look at a move to rework the teacher layoff system so longevity matters less. The bill sped through the Republican House but faces opposition in the DFL-led Senate.

Measures to require evaluations play a role when school boards cut jobs brought more than two hours of testimony to the Senate Committee on Education. The committee chose not to vote on the bills Thursday, signaling likely future debate.

“This is not about getting rid of teachers. This is just about getting the best teachers in front of our students,” said Sen. Terri Bonoff, a Minnetonka Democrat. Most of her caucus has stood with the state teachers union, which opposes the measure it says will lead to costly lawsuits and contract renegotiations.

Bonoff’s bill came alongside one from House Republicans, which includes the layoff language and would also ease the licensing process for out-of-state teachers. The GOP-led chamber passed that measure last week largely along party lines.

Parts of the House GOP bill, like making it easier to revoke the licenses of teachers convicted of sex crimes, have bipartisan support. Democrats have raised the most concern over the layoff language.

Minnesota school districts and teachers can negotiate their own layoff procedures. But most of them use the state default, which places a heavy emphasis on seniority.

The Legislature in 2011 voted to require a teacher evaluation system in every public school district by the 2014-2015 school year. Several have said using that system as a factor in layoffs will poison collaboration and mentorship among teachers, who will no longer have any incentive to help one another.

Education Minnesota, the teachers union, brought a member of a global think tank and consulting group to walk legislators through the process of evaluation.

Many large organizations appraise their employees, said Dr. Josh Davis, director of research for the NeuroLeadership Institute.

“But when we store a label somewhere, and people know that label is being used to determine their livelihood, then we’ve just erased all the potential to have these growth conversations,” Davis said.

Sen. Roger Chamberlain said later in the hearing that competition and collaboration can produce better results in tandem. “It’s not something to be scared of,” the Lino Lakes Republican said.

Derek Olson, a former Minnesota Teacher of The Year, disagreed. Competition between groups works in the private sector when companies fight to make the best product, he said, but added: “Within my school, the competition shouldn’t be between me and the teacher down the hall.”

(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (AP) — Best Buy is laying off 500 full-time and 1,000 part-time employees in Canada as it consolidates operations.

The Richfield, Minnesota-based company also announced Saturday that it will close 66 of its Future Shop locations and rebranding the remaining 65 as Best Buy stores. The Future Shop website will be folded into Best Buy’s site.

A company spokeswoman said some employees will be rehired at other locations but declined to give a number.

After the changes, Best Buy will have 192 locations across Canada, including 136 large-format stores and 56 Best Buy Mobile stores.

All Future Shop gift cards will be accepted at any Best Buy Canada location and at BestBuy.ca and items can also be returned to any Best Buy location.

The company says it plans to invest $200 million Canadian ($160 million in U.S. dollars) in the market in the next two years.

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MINNEAPOLIS (AP) — U.S. Steel Corp. said Tuesday it plans to idle part of its Minntac plant at Minnesota’s biggest iron mine, resulting in about 680 layoffs.

It’s the latest symptom of a downturn in the American steel industry that has taken a heavy toll on the Iron Range of northeastern Minnesota. U.S. Steel cited high steel imports, dumping of foreign steel and low steel prices in its announcement.

U.S. Steel spokeswoman Courtney Boone said the layoffs are temporary at the Mountain Iron facility, which employs about 1,500 workers, but that the company can’t speculate how long they’ll last. She said that will depend on market conditions and customer demand. Three of the plant’s five iron ore processing lines will be shut down, she said.

“This is not a permanent adjustment,” Boone said.

About three weeks ago, Pittsburgh-based U.S. Steel said it would idle its Keetac plant in nearby Keewatin effective May 13, resulting in 412 workers laid off. And Magnetation LLC announced in February that it was shutting down its Keewatin plant, resulting in about 20 job losses. The mining region is about 200 miles north of Minneapolis.

U.S. Sen. Al Franken, a Minnesota Democrat, said he would travel to the Iron Range on Tuesday to meet with affected workers and local officials. He said in a statement that the announcement “is not only devastating to the laid-off employees and their families, but also to the economic well-being of the entire region.”

Franken said the Minntac and Keetac layoffs are a “stark reminder” of the need to fight unfair foreign trade practices. He said he discussed the problem with trade and economic officials at the White House last week and would contact them again.

Domestic steel companies say they have been grappling with a market being flooded with cheap steel exports, mostly from Asian counties, and that increasing iron ore production in Brazil and Australia has depressed ore prices.

U.S. Steel’s president and CEO, Mario Longhi, told the Congressional Steel Caucus last week that the country hasn’t seen such high steel import levels since the late 1990s.

“Total and finished steel products imported into our market by heavily subsidized, command-economies increased year-to-year between 22 to 90 percent,” Longhi testified. “The last time we were at these levels, nearly half of American steel companies disappeared.”

Company officials told leaders of United Steelworkers Local 1838, which represents Minntac workers, that its projected taconite pellet supplies are 3.2 million tons more than its steel mills need, or about four months’ worth of production on the lines that will be shut down, the union said in a message posted on its website.

Local 1938 President Jon Malek told his members that the governor’s office will assist workers in signing up for unemployment benefits and health insurance and that the union would apply for trade adjustment assistance, which extends the duration of unemployment benefits for workers who lose their jobs because of increased imports.

“The magnitude of this first round of layoffs came as quite a blow and the logistics of this will be quite a lot to deal with,” Malek said. “This is not the first time your leadership has had to deal with this and we will work our way through all the hard times that we as Steelworkers have come to accept as being part of the industry.”

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ST. PAUL, Minn. (AP) — A measure that has won initial backing of Minnesota House and Senate lawmakers would ensure that Iron Range taconite workers are eligible for unemployment benefits when several plants are idled in coming months.

Identical language added to budget bills expected to pass Wednesday would remove obstacles for those workers to get assistance. The clause covers iron ore workers in Itasca, St. Louis and Lake counties who are laid off between March 1 and December 31.

A glut of steel on the market has led U.S. producers to slow down or stop production at some plants, sidelining hundreds of workers. Because those layoffs are deemed temporary, some workers could have had vacation payments or other benefits leave them ineligible for jobless assistance.

The provision embraced by lawmakers waives those standards.

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ST. PAUL, Minn. (AP) — House Republicans have finalized their bid in Minnesota’s education funding debate, setting up a clash with Democrats calling for the state to invest a bigger chunk of its projected fiscal windfall in children and schools.

The GOP majority’s education budget, which passed 69-61 Saturday largely along party lines, earmarks an extra $157 million for schools and low-income families. That money, along with policy changes, will help students without squeezing state coffers, said House Speaker Kurt Daudt.

“We wanted to show in our budget that you can invest in priorities, and we’re investing new money in K-12 education. … And we’re doing all of that while still respecting the taxpayers,” the Crown Republican said.

But Democrats and education advocates say the bump in funding won’t keep up with inflation, forcing schools to lay off teachers and increase class sizes. Democrats in the House and Senate insist Minnesota should devote more of its projected $1.9 billion budget surplus to education.

“We don’t face fiscal stress in Minnesota,” said Rep. Carlos Mariani, DFL-St. Paul. “There is no better, stronger investment that we can make as a people than investing in our … student population of young Minnesotans.”

Lawmakers have major gaps to bridge as they finalize an education spending plan in the last weeks of the legislative session. The Senate’s budget has about $361 million more for schools, and Gov. Mark Dayton has called both the Senate and House education proposals unacceptably low.

House and Senate legislators are passing on the Democratic governor’s $343 million plan to offer high-quality voluntary preschool to every 4-year-old. They’re instead opting for early education scholarships for low-income families and more money for schools to operate pre-kindergarten programs or contract with private providers.

Debate on the House bill lasted more than four hours Saturday. The proposal would make teacher performance the main factor in layoff decisions rather than seniority. Republicans say that will lead to more effective educators staying in schools, but Democrats and the state teachers’ union argue districts can already negotiate their own layoff policies.

Republicans have proposed a .6 percent bump in general education funding in each of the next two years. School officials and advocacy groups have pleaded for bigger increases, arguing inflation will gobble up the roughly $98 million in extra “formula funding” the House would provide. Dozens of parents and children rallied at the Capitol on Saturday to demand a bigger education budget.

House Education Finance Chairwoman Rep. Jenifer Loon left the door open for more money as negotiations play out.

“I think between the House and the Senate numbers, you will find a pathway forward with a very responsible education finance package that does what we need to do,” the Eden Prairie Republican said.

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FARIBAULT, Minn. (AP) — Jennie-O Turkey Store says it’s laying off 233 employees at its processing plant in the southern Minnesota city of Faribault because of bird flu outbreaks that have cut the number of available turkeys.

In a statement Tuesday, the country’s second-largest turkey processor said the Faribault plant will switch to a single shift for the foreseeable future. But plant manager Randy Vergin says the layoffs will be temporary, and that the company intends to recall everyone to work when turkey supplies return to normal levels.

Willmar-based Jennie-O is a division of Austin-based Hormel Foods Corp. The company has been hard hit by the outbreaks, which have affected over 40 company-owned or contract farms in Minnesota and Wisconsin.

Gov. Mark Dayton planned to discuss the situation with Jennie-O officials later Tuesday.

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HOYT LAKES, Minn. (AP) — More layoffs were announced Tuesday on northern Minnesota’s Iron Range, this time at Mesabi Nugget in Hoyt Lakes and Mining Resources in Chisholm.

Their Fort Wayne, Indiana-based parent company, Steel Dynamics Inc., said in a statement that the operations are being idled effective immediately, meaning the loss of about 200 positions for at least two years. The steelmaker said it would retain “a small group” of employees to maintain those facilities and offer jobs to laid-off workers at other Steel Dynamics locations and subsidiaries if positions are available.

CEO Mark D. Millett cited “an extreme decrease” in prices for pig iron, which is what the two operations produce.

“We currently do not see strong drivers that would suggest a reversal of this trend for some time,” he said. “Our Minnesota operations were intended to serve as a hedge to high pig iron and scrap prices. While this lower raw material cost environment certainly advantages our steel operations, it has resulted in an uneconomic situation for our iron nugget operations.”

Mining Resources produces iron concentrate from taconite mine waste to feed Mesabi Nugget, which produces high-purity iron nuggets. Steel Dynamics is one of the largest domestic steel producers and metals recyclers with sales of $8.8 billion in 2014 and over 7,700 employees.

Other Iron Range operations already have cut nearly 1,300 jobs this year. U.S. Steel said in March that it would idle part of its Minntac plant and its Keetac plant, resulting in nearly 1,150 layoffs. Cliffs Natural Resources this month said it would eliminate about 100 employees at Hibbing Taconite, Northshore Mining and United Taconite. Magnetation shut down its Keewatin plant in February, cutting about 20 jobs.

Domestic steel companies say they have been grappling with cheap steel imports and higher iron ore production in Brazil and Australia.

(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) — The head of Minneapolis-based U.S. Bancorp warns that he might have to lay off some of his employees if interest rates don’t start climbing later this year.

Chairman and CEO Richard Davis made that comment at a conference this week.

U.S. Bancorp has about 67,000 employees in 25 states.

Federal Reserve Chair Janet Yellen said earlier this month that she expects to begin raising interest rates if the job market improves, and the Fed is confident inflation will climb closer toward its target rate.

ST. PAUL, Minn. (AP) — Minnesota state government employees warned this month of potential layoffs have gotten new notices canceling the threat.

The Department of Minnesota Management and Budget has sent some 9,400 workers notices to remind them to “report to work as usual” on July 1. That’s because state lawmakers have approved a new budget for all agencies, removing the threat of a government shutdown after June 30.

In early June, thousands were told their jobs were at risk in a budget standoff. The new notice thanks the employees for their patience and dedication to their duties.

(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) — It has been nearly three weeks since the last reported case of the bird flu in Minnesota. But the state has been hit hard since the outbreak began in March.

About nine million turkeys and more than 100 farms have been lost.

As the state recovers, some cities are feeling the economic impact of the outbreak.

Jennie-O Turkey Store in Faribault is just one business in the city, but when it was forced to lay off hundreds of workers in May, the impact extended far beyond Jennie-O.

“It is scary to be under that kind of stress on a day-to-day basis,” Bio Wood Processing co-owner Kim Halvorson said.

Bio Wood Processing depends on Jennie-O. They turn wood into turkey bedding. When the turkey processor stopped ordering their product, Bio Wood felt it in their pocketbooks. So far they have lost over $100,000.

“When you kind of go from that to nothing, it hurts,” co-owner Joe Barna said.

And Bio Wood has company. According to Faribault’s Economic Development Authority and the University of Minnesota Extension, the city is expected to see a loss of more than $78 million in output sales, and more than $16 million in labor income. That is based on annual numbers if the layoffs continue.

Jennie-O’s layoffs have hit Faribault’s Somali community especially hard.

“That was my first job since I moved to the United States,” former Jennie-O employee Abdi Fatah said.

Fatah was one of more than 200 Jennie-O workers laid off in May. Many of the laid-off workers are Somali immigrants.

He is hoping to be hired back, but until then he is helping out at the Halal Market, which has also indirectly become a victim of the bird flu.

As a result of the layoffs, business is down 20 percent at the market as fewer customers are coming in.

“Because of the layoff a lot of people don’t come right now,” Fatah said. “Most of them, they move out, they go to look to other places for job.”

Fatah says a lot of former employees have moved to Minneapolis or out of state to find a job.

Jennie-O is hoping to rehire some of the workers that have been laid off, but there is no timetable on when that might happen.

VIRGINIA, Minn. (AP) — The United Steelworkers union says it expects all laid off employees at U.S. Steel’s Minntac mine to be recalled in the next two weeks.

In a statement on the Local 1930 website, local president Lowell Carlon says the company has already recalled 68 maintenance and other employees in preparation. He says maintenance workers will be returning to a 40-hour week next week, while operations workers are still on a 32-hour week. Over the next two weeks, he says, all employees on layoff should be recalled.

U.S. Steel laid off about 400 Minntac workers in June, citing imports, dumping of foreign steel and low prices. The Mountain Iron facility employs about 1,500 people. The company’s other Iron Range facility, Keetac, remains in idle mode with about half its workforce on layoff.

(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

MINNEAPOLIS (WCCO) — Another round of layoffs has struck Target Corp. in the Twin Cities.

The company eliminated 235 positions Tuesday from its headquarters in Minneapolis and satellite offices in St. Louis Park and Brooklyn Park. It also cut 40 positions from its IT Center in India.

“As a part of our transition to an agile technology development and support model, we conducted a comprehensive review of our current structure and capabilities,” Target spokeswoman Molly Snyder said. “Following this review, we determined where we needed to make changes to meet the current, and anticipate the future, needs of the business.”

There have been multiple rounds of layoffs at Target Corp. in 2015. In March, roughly 13 percent of the employees then working in the Twin Cities were let go or informed they would soon be laid off, amounting to roughly 1,700 jobs.

There were also significant layoffs in February and in April.

According to reports, the latest round of layoffs puts Targets corporate workforce at approximately 11,000 employees.

University of Minnesota Carlson School of Management professor Paul Vaaler says it is possible Target could be outsourcing some of the technology work. They may also use some of the cost savings to refocus on other business ventures.

“There’s a new Chief Information Officer Mike McNamara who has been at Target since June,” Vaaler said. “Probably looking around right now [thinking], ‘What do I keep inside the company or what do I contract out to smart suppliers who provide the same services?'”

Target says all of the employees let go will receive “comprehensive” severance packages.

MADISON, Wis. (AP) — The University of Wisconsin System has eliminated dozens of administrative and academic affairs positions in a cost-saving move — both to help cope with state budget cuts and as part of a long-term streamlining plan.

No employees were laid off. Attrition through eliminating positions, shifting employees into vacant positions and retirements resulted in a net reduction of 36 positions, UW System President Ray Cross.

The total dollar amount of savings was not immediately available.

Two of the eliminated positions were from Cross’ own office, he said.

UW spokesman Alex Hummel said the reductions were the result of changes that were in the works even before lawmakers cut $250 million from the UW System in the new state budget. Cross had announced last November that some belt-tightening needed to occur to make the UW System more efficient and nimble. But Hummel said eliminating the positions will help the system cope as it absorbs the budget cuts.

The state cut has led several UW campuses to lay off workers, eliminate vacant positions or offer buyouts to senior employees.

“We’ll no longer do some academic programming things,” Cross said. “The program array decisions will be streamlined, and be a team approval rather than one person. Some people are being assigned more work. We have to work better and smarter.”

The next focus of streamlining efforts will be information technology, the system’s budget office, procurement and human resources, Cross said. Less customized software for student information data systems would lead to significant cost savings, for example.

“That costs us a fortune,” Cross said.

The Madison-based UW System serves around 180,000 students each year and employs more than 39,000 faculty and staff statewide. It is made up of 13 four-year universities, 13 two-year UW campuses, and UW-Extension, which operates statewide.

Its annual budget is about $6 billion, with about $1.2 billion coming from state funding, according to the system’s website.

(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

ST. PAUL, Minn. (AP) — More worrisome taconite production news came to Minnesota’s Iron Range on Wednesday, with another company warning of mass layoffs in a region already ailing from the downturn of the domestic steel industry.

Magnetation LLC announced the possible curtailment of iron ore production next year a plant in Bovey, which would trigger layoffs of longer than six months. It advised of the shift in a federal notice that’s required at least 60 days ahead of layoffs of more than 50 workers for extended durations.

Gov. Mark Dayton and state leaders already are considering a special session to provide extended unemployment benefits to steelworkers who will soon exhaust their maximum allotment.

“It just underscores how grim the situation is up in northeastern Minnesota,” Dayton said Wednesday. “Something has got to be done immediately.”

Senate Majority Leader Tom Bakk, a Cook Democrat, said in statement Wednesday that legislation to address persistent unemployment and poverty among black Minnesota residents should also be on the agenda. In a written statement, Dayton said Wednesday he’s in agreement with Bakk.

Matt Lehtinen, president of Grand Rapids-based Magnetation, said up to 163 workers could be affected but some could angle for open positions at the company’s other plants in the region. The notice says nothing would occur until after Jan. 31, but Lehtinen said the scope of the production shift would be known within the next month.

According to company figures, the three-year-old plant extracts and processes more than 1 million metric tons of iron ore per year, with some of it shipped as far as its plant in Indiana for steel production.

“While any operating curtailment is unfortunate, we must balance our current production with our customers’ needs to sustain our business in these challenging markets,” Magnetation chief executive officer Larry Lehtinen said, noting that it’s unclear how long the production slowdown would last but the company is hopeful to resume operations sometime in 2016.

A day earlier, Cliffs Natural Resources said it would temporarily shut down a second plant, Northshore Mining, in a move that could sideline up to 540 workers starting next month.

While Minnesota’s taconite industry is accustomed to ups and downs, this one is more troubling because other downturns have tracked with national economic recessions, according to Mark Phillips, commissioner of the Iron Range Resources and Rehabilitation economic development agency.

In this case, Phillips said a strong dollar has made U.S. steel hard to export, low oil prices have reduced producer demand for tubular steel goods and other countries are flooding the market with cheap steel.

“We haven’t seen where all these things line up. It’s a global issue,” Phillips said. “It’s not something we or the state can do to flip a switch in a different direction.”

(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

BOVEY, Minn. (AP/WCCO) — Iron ore producer Magnetation has a target date for layoffs on the Iron Range.

The company said in a statement Wednesday night it will idle the plant in Bovey beginning Jan. 18. About 160 people who work at the plant were notified about two months ago that the layoffs would be coming.

Magnetation CEO Larry Lehtinen says there’s no way to predict how long the layoffs will last. The downturn in the domestic steel industry has significantly cut production on Minnesota’s Iron Range.

The company continues to run its largest plant near Grand Rapids.

Some laid-off iron range workers were also at the Capitol Thursday.

They’re pleading for a 26-week extension of unemployment benefits that are about to expire.

Governor Dayton said if lawmakers agree to a special session he wants to include emergency aid to the Iron Range.

(TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved.This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

MINNEAPOLIS (WCCO) — Polaris laid off 100 salaried workers Monday, half of which are in the Twin Cities.

A company spokesperson said Tuesday the demand for snowmobiles and other all-terrain vehicles is down. They blame the warmer winter and gas prices.

Polaris said it will fill open positions, and is cutting back on hiring temporary and contract workers to further reduce the workforce.

The company is planning to open a new factory in Alabama later this year, despite the layoffs.

MINNEAPOLIS (WCCO) — From the latest news concerning the Zika virus to Helen Mirren’s anti-drunk driving Super Bowl ad, here are the our stories to know for Wednesday, Feb. 3.

Zika Virus Latest

The U.S. is seeing its first case of Zika virus transmitted through sex in Dallas.

The disease is rapidly spreading by mosquitos in tropical climates. The CDC says someone who traveled to an affected country infected the patient through sexual contact.

Most people who catch the Zika virus don’t show symptoms.

Target & CVS

CVS Pharmacy and Target are officially tying the knot Wednesday with the grand opening of their first joint locations in Charlotte.

CVS purchased the Target Pharmacy business last year.

So now, more than 1,600 pharmacies in 47 states will be rebranded as CVS Pharmacy within the next few months.

Yahoo Layoffs

Yahoo is laying off about 1,700 employees.

The move could help CEO Marissa Mayer keep control of the company — as it would buy her time. She’s been trying to fend off a group of angry shareholders.

They say in the past three-and-a-half years, Mayer hasn’t made progress trying to turn around Yahoo’s financial performance.

Helen Mirren Takes On Drunken Driving

Budweiser is doing something it has not done in more than a decade, and it’s getting help from British actress Helen Mirren.

One of their Super Bowl ads is a straight-forward campaign taking on drunk driving. In it, the English actress very eloquently throws out unique insults for people who drive drunk.

The last time the beer company did an anti-drunk driving Super Bowl spot was in 2005.

Budweiser also plans to run a spot featuring their traditional Clydesdales.

VADNAIS HEIGHTS, Minn. (WCCO) — Workers in Vadnais Heights are digesting unexpected news about their jobs with a well-known food maker.

Kellogg’s informed the state to prepare for a glut of layoffs this summer when it closes one of its snack-food distribution sites. More than 200 people will be out of jobs.

Look around and you see it everywhere – Americans are striving to live healthier. From how we exercise to what we eat, and that’s putting traditional snack foods on notice.

Kellogg’s is a major supplier of snack foods like CheezIts, Nutri-grain bars and Keebler cookies to name just a few. But how it gets those products to store shelves is about to change.

And that’s bad news to the 216 employees of the Vadnais Heights direct store delivery site.

“You have layoffs in good economies and bad economies,” Jeremy Hanson Willis with DEED said.

Jeremy Hanson Willis is deputy commissioner of Minnesota’s Department of Employment and Economic Development. The agency just received a federally-mandated letter from Kellogg’s, informing the state of an impending mass layoff.

“And that really helps us to be able to immediately step in and be able to provide support and services to the people affected by the layoff,” Willis said.

Kellogg’s says the shutdown is needed to trim $475 million and make the company more efficient. Displaced workers will get state help finding jobs in an economy where good workers can be hard to find.

“There are a lot of businesses around the state looking for workers and having a hard time to employ them because we have so few unemployed folks in our state,” Willis said.

The layoffs are expected this summer in both July and August.

MINNEAPOLIS (WCCO) — With the news of the state’s booming economy, sometimes lost in the headlines are the layoffs affecting thousands of Minnesotans.

So far this year, more than 4,000 people have lost their jobs as companies have cut back or closed altogether.

From retail to manufacturing, WCCO is taking a look at the mismatch in the market and where the job openings are right now.

For six years, he was proud to be a part of the Minnesota staple in Maplewood.

Working in reporting and analytics at 3M, Michael Learned knew it wasn’t good when on a Monday last month, he had a meeting notice from his supervisor.

“It’s never easy to lose a part of who you are, really,” Learned said.

“Going through my mind was did I miss something, did I upset somebody, am I not meeting some type of expectation?” he added.

Learned was one of 20 in his division given their 45-day notice. Forcing him back into the job market.

“Whether it’s internal or external I need to find something for me and my kids,” Learned said.

Learned is far from alone, Minnesota reports from the last year show thousands more in the same situation.

Director of Employer Services at Minnesota’s Department of Employment and Economic Development, Jackie Buch walked us through the trends the office has been tracking this year.

“Layoffs are very hard for both employers and for their workers,” Buch said.  “We’re seeing the majority of layoffs happening in the retail industry,” she added.

From shuttering all Shopkos to Payless Shoes in the state, Creative Kids Stuff and the American Girl store, it’s no secret online habits have played a part.

“People are looking at alternative ways to shop. That’s impacting some of our smaller retailers,” Buch said.

Overall, The Department of Employment believes the future looks bright for most Minnesota workers with 140,000 job openings right now. That’s two vacancies for every one worker.

“When this first came out, people were saying we need more skilled workers. We need more workers,” Buch said.

As a Labor Economist and associate professor at the University of Minnesota’s Carlson School of Management, Aaron Sojourner says the fact the state is not hyper focused on one job sector helps.

“Minnesota is actually really unique in that we have a really diverse economy,” Sojourner said.

“That means we’re sort of resilient when different shocks hit different parts of the economy,” he added.

Sojourner cites falling demand as the largest reason for layoffs with globalization, outsourcing, and automation all at play.  Economists say healthcare, robotics and IT fields in Minnesota all show the most promise.

As the unplanned countdown continues for what Learned can only hope will be to gainful employment.

“I’m OK right now. Ask me in 30 days and it may be a different answer,” Learned said.

Sojourner says one of the biggest challenges in Minnesota right now is our wage growth has slowed in the last six months, following a national trend.

If you’ve been laid off, the state has nearly 50 career force locations across Minnesota to help connect workers with skills training and new jobs. For links to those and to the dislocated worker helpline head to the Employment and Economic Development Department’s website.

MINNEAPOLIS (WCCO) — CenturyLink has announced approximately 150 employee positions will be terminated in Minnesota.

On Friday, the telecom company announced that it is reducing its field operations workforce. The last day worked for those employees will be May 29, 2020.

The company says it’s “based on continuous assessment of our business needs and workforce alignment”.

There are about 2,050 CenturyLink employees throughout the state.

MINNEAPOLIS (WCCO) — The Minnesota Historical Society (MNHS) has announced layoffs and extended furloughs, along with the reopening of some historical sites.

On Wednesday, MNHS said that 176 furloughed employees have been laid off and 64 have been recalled to work. Also, 136 staff members will get extended furloughs.

The layoffs primarily affected those who work at MNHS historic sites and museums that remain closed.

“These actions will address strains on the MNHS operating budget as a result of ongoing closures. Critical staff will continue to ensure the security of historic sites and resources,” MNHS said in a release.

Meanwhile, MNHS says Split Rock Lighthouse and Jeffers Petroglyphs will be reopening on July 15. Split Rock will be open 7 days a week while Jeffers Petroglyphs will be in operation Thursday through Sunday.

“With the health and safety of guests, staff and the community at the forefront of decision-making, MNHS feels it is safe to reopen Split Rock Lighthouse and Jeffers Petroglyphs because they offer predominately outdoor experiences,” MNHS said.

MNHS will be limiting the number of daily visitors to each site and tickets will go on sale July 8. Tickets can be purchased up to one month in advance online or at 651-259-3015.

“MNHS decisions about its remaining sites will be based on several factors: current state rules for reopening venues, requirements for cleaning, social distancing, and limiting capacity, as well as the financial cost of operating the site,” MNHS said.

The remaining sites will continue to be closed through the June 30 date that was announced in April. More information here.

(CBSNewYork) — Retailing giant Macy’s, headquartered in New York, announced staff reductions today that will affect management and workers across various levels of its organization. The layoffs include 3,900 people in corporate and management roles. The company has also cut staff in its stores and throughout its supply chain and customer support network.

“COVID-19 has significantly impacted our business,” according to Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “While the re-opening of our stores is going well, we do anticipate a gradual recovery of business, and we are taking action to align our cost base with our anticipated lower sales.”

The company, whose brands include Macy’s, Bloomingdale’s and Bluemercury, expects the moves will save $395 million in 2020 and $630 million annually going forward. It also believes the restructuring will promote its competitiveness in the changing marketplace. Macy’s will start to welcome furloughed employees back in early July.

The struggles of big-box retailers are well documented, and the economic issues brought on by coronavirus have only exacerbated them. Back in February, Macy’s announced its intention to close 125 stores and lay off 2,000 corporate workers over the next few years. In March, as the pandemic gained strength, the retailer temporarily closed all 600 of its stores, pushing all sales online.

Even as the economy around the country continues to open up, companies like Macy’s face a challenging future.

MINNEAPOLIS (WCCO) — Mall of America announced Thursday it is permanently laying off 211 of its employees.

READ MORE: Mall Of America Enters Forbearance Agreement To Avoid Foreclosure

The mall says it has been making progress since the COVID-19 pandemic began, but recovery is slow.

The layoffs go into effect Sept. 30. Another 178 employees are still laid off temporarily.

READ MORE: Man Pleads Guilty To False Mall Of America Bomb Threat In Plot To Endanger Wife’s Citizenship

ST. PAUL, Minn. (WCCO) — Tens of thousands of state of Minnesota employees received layoff notices that their jobs could be in jeopardy should the Legislature not agree to and pass a budget at the end of the month.

Lawmakers at the state capitol adjourned last month without sorting out the details of a $52 billion two-year budget or finding compromise on key policy proposals within the split legislative body. Leaders promised that come mid-June for a special session, the work would be complete.

But now as the clock ticks into the final month of the fiscal year, there’s preparation for the worst case scenario: a government shutdown that would leave state employees laid off or on unpaid leaves of absence until state agencies are funded.

“For the Legislature to not do its job at this point and pass a budget, it’s really an insult to the dedicated public servants who have worked nonstop over the last fifteen months,” said Megan Dayton, president of the Minnesota Association of Professional Employees, the second largest union representing state employees.

Dayton, who is a state demographer for the Minnesota State Demographic Center, and more than 37,000 others working in state government received messages over the weekend of a potential for a shutdown impacting their jobs.

In a letter sent to all state employees in all agencies, Gov. Tim Walz reiterated the possibility and apologized for the “stress and uncertainty” of the situation. But he remains optimistic that their jobs will be secure.

“I am hopeful that this process is just a formality and the Legislature will agree to a budget before the next biennium before July 1,” he wrote. “Nonetheless, we are obligated to notify you of this possibility.”

“I will continue to do everything I can to reach a balanced budget agreement in time to avert a shutdown,” he vowed.

Legislative leaders Melissa Hortman, who is Speaker of the House, and Senate Majority Leader Paul Gazelka also reiterated their commitment to passing a budget so state employees won’t face a similar fate to those who worked for the state of Minnesota in 2005 and 2011 when the government previously shut down.

Ten years ago, the shutdown lasted for 20 days and in 2005, it was a partial shutdown lasting two weeks. In 2001, the Legislature narrowly dodged it.

“Senator Gazelka and Governor Walz and I are all committed to getting a budget done on time for the people of Minnesota so there’s no interruption in government services,” Hortman said in an interview Monday.

Gazelka has previously floated the idea of a “lights on” budget—one that keeps funding at current levels temporarily—in order to avert suspension of some government operations.

Still, the promise to pass a budget by June 30 falls short for Dayton, who said drawn out negotiations while her job hangs in the balance is “frustrating.”

“My husband and I are both state employees and so we would go to absolutely zero income in the event of a state government shutdown,” she said. “It’s really scary.”

Anyone on layoff or unpaid leave status would not receive pay for the time on layoff or unpaid leave, a letter from the Minnesota Department of Management and Budget says. Some employees, though, may be eligible for unemployment benefits and could file July 1.