Earlier this week a number of county commissioners came to the Capitol for a press conference 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.
“What the Governor is proposing presents an incredible burden that our counties are simply not equipped to take on,” said Senator Karin Housley (R-Stillwater). “His original plan presented this cost-shifting alternative as a ‘savings,’ but that is totally inaccurate. What his plan really does is shift a budgetary burden onto counties that are already struggling to adjust to recent state-imposed mandates.”
County leaders in attendance were consistent in expressing similar 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.
“So many families across the state are already concerned with rising property taxes – this has been an ongoing issue in Minnesota, and it’s already priced many people out of their homes. Shifting costs onto counties will mean higher property taxes, and will put everyone in a much worse position overall. By imposing additional costs at the county level, it will also force our counties to make cuts elsewhere, and it will hurt our most vulnerable populations. We need to reassess the Governor’s budget proposal and find savings elsewhere. Considering there has been over $500 million in fraud throughout the state, certainly there are other avenues we could explore to save money. Cutting services for our most vulnerable populations and irrevocably harming our counties in the process are non-starters. We need to go back to the drawing board.”