A Budget That Shifts Costs to Our Counties
By Senator Paul Utke

As I’m sure most have heard already, last month Governor Walz released his budget and bonding proposals. I covered this in a previous piece, but here’s a quick overview: the bonding proposal is similar in size to last year’s proposal despite the fact that we’re heading towards a $5 billion deficit, and the Governor has touted his budget proposal as a “tax cut” despite the fact that it really just shifts a tremendous amount of costs onto our counties. And that’s what I want to talk a little bit more about, because it’s something folks should be well aware of, since the effects will be felt sooner rather than later.

Here’s what you should know: counties are saying that Governor Walz’s budget shifts are estimated to come with a 9% increase in property tax levies. That means that this budget proposal shifts a whopping $460 million in services to counties. How can counties realistically be expected to cover these new costs to ensure services remain uninterrupted? This is going to be a devastating hit to our counties, no matter how you slice it.

There are so many services within HHS that are absolutely critical to our seniors and most vulnerable – things like long-term care facilities, ambulances, nursing homes, disability services… These are the things we should be bending over backwards to fund, but these are the areas Governor Walz is abandoning. At the state level, we often see a lot of funding going out to other areas like non-profits, pilot programs, studies, etc. And we’ve seen the massive fraud that this has led to. With a $5 billion deficit on the horizon, it’s clear we need to cut back in some areas and get our spending under control. That all being said, in no world should disability services for our most vulnerable be the first proposed cut.

This situation puts our counties in a pickle. If they want to maintain these services that so many are reliant on, they will be forced to raise taxes at an unsustainable rate just to cover their increased share. Their only alternative would be cutting these programs.

If everything goes as we think it will, this situation will cause property taxes to double by 2033, and that’s just around the corner. I’ve heard from folks across the state who have already been priced out by rising property taxes. This would be yet another increase that many frankly can’t afford. What are folks going to do when this happens? This could be yet another issue that will drive people from our state.

These are issues I will continue to bring up in committee hearings because Minnesotans deserve to know what’s happening with their services and taxpayer dollars. It boils down to this: the massive shift in funding services will fall directly on our counties, and that means higher property taxes. That shift will be damaging in numerous ways to families across the state. Governor Walz is willing to grow the government in other areas by doing it on the backs of the disabled and elderly who rely on the very services he’s cutting. It’s disappointing that the Governor is happy to do this to taxpayers. There has to be another way. With the frivolous spending bills Democrats have passed in the last two years, I’m certain we could find other legitimate cuts to make that would not harm our most vulnerable. These services cannot and should not be disrupted because Democrats are incapable of budgeting and prioritizing.