SAINT PAUL, Minn. – Republican State Senator Jordan Rasmusson of Fergus Falls and county commissioners held a press conference to voice concerns about Governor Tim Walz’s budget.
Rasmusson says it will shift $1.5 billion in human services cost shifts. County Commissioners statewide say transferring these costs could force local governments to raise property taxes seven to nine percent to cover additional expenses.
Walz is trying to address a $5.1 billion deficit by 2029. If his budget is passed as proposed, Walz says it would leave a $2.1 billion surplus in fiscal years 2026-27 and a $355 million surplus in fiscal years 2028-29.
“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. What is presented as savings is really just a cost shift that will force counties to raise property taxes on families and businesses,” Rasmusson said.
Clay County analyzed cost shifts in Walz’s budget 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. 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%,” Clay County Commissioner Jenny Mongeau said.
“Counties are willing to, and want to, partner with DHS to have conversations about policy changes that can control costs without cost shifts. 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,” Otter Tail County Commissioner Kurt Mortenson said.
