Senator Jordan Rasmusson (R-Fergus Falls) and county commissioners held a press conference today to voice concerns over Governor Tim Walz’s proposal to shift $460 million in costs to counties through the Department of Human Services (DHS) budget. County leaders warned that these shifts would place a significant financial burden on local governments, ultimately leading to higher property taxes across Minnesota.
The proposal is part of Gov. Walz’s attempt to address a projected $5.1 billion state budget deficit by 2029, which includes $1.5 billion in human services cost shifts. Commissioners in attendance cautioned that transferring these costs to counties could force local governments to raise property taxes by around 7% to 9% to cover the additional expenses.
“The governor’s budget may seem like a quick fix for the state, but it comes at a cost to our counties and the vulnerable Minnesotans who depend on essential services,” Sen. Rasmusson said. “What is presented as savings is really just a cost shift that will force counties to raise property taxes on families and businesses.”
Clay County Commissioner Jenny Mongeau emphasized the significant impact the governor’s budget shifts would have on Clay County’s finances. The county assessed these effects by analyzing cost shifts connected to the Behavioral Health Fund, disability waivers, and the Minnesota Sex Offender Program. “All the additional costs take away from the ability for us to fund other critical services,” Mongeau said. “The total cost of the governor’s shift is nearly $3.2 million annually for Clay County, and that cost is likely to grow as we’re only including those three areas for discussion. To cover this, we would be forced to raise our property tax levy by approximately 6.95%.”
Otter Tail County Commissioner Kurt Mortenson spoke about how the governor needs to involve counties and find a workable alternative to the cost shifts. “Counties are willing to, and want to, partner with DHS to have conversations about policy changes that can control costs without cost shifts,” Mortenson said. “However, this proposed budget was brought forward without any conversations, without any discussions with the county at the table. Shifting costs to counties will directly impact property taxes and will affect the most vulnerable populations, who are already struggling to pay for basic needs such as housing, groceries, and health care.”
The other county leaders in attendance included Scott County Commissioner Dave Beer, Carlton County Administrator Dennis Genereau, and Roseau County Commissioner Jack Swanson. They also expressed concerns about the governor’s budget and the cost shifts to counties.
The Association of Minnesota Counties (AMC) is still assessing the full impact of the proposed budget changes. According to an AMC release, early reports from members suggest that the governor’s proposals could place a significant burden on local governments, with some counties predicting “9% levy increases.”
The press conference took place ahead of this afternoon’s Senate Human Services Committee hearing, where counties, providers, and members of the public testified on the potential impacts of the budget changes.