Richland County HHS presents preliminary 2026 budget, flags insurance and fund cuts

Richland County’s Health and Human Services (HHS) director presented a preliminary 2026 budget summary to the county Community and Health Services standing committee on Aug. (presentation date not specified), warning that higher fringe costs and planned fund cuts will require reallocation and modest levy requests.

The director said the administration budgeted an 11.2% increase in health insurance and absorbed step increases that raise retirement and FICA costs, a package the director said “that total increase is $207,000.” She told the committee she and managers trimmed discretionary spending where possible and moved some previously fund-34 expenses into fund 56 (county levy) after being informed of a 25% cut to fund 34.

Why this matters: higher personnel and benefits costs and cuts to state or grant-funded lines can force county programs to use more levy dollars or reduce services, especially in behavioral health and public health where demand and fixed costs are rising.

The director described several concrete actions and constraints: managers were asked to budget “cost to continue” in most units; public health’s fund (identified in the budget as fund 34) was told to expect a 25% reduction, so some functions were moved to levy-funded accounts; the economic support program faces a reduction in the federal match starting in late 2026 (the director said the match is currently 50-50 and that the match rule “starting in fourth quarter 20 26 that goes to 7,525,” noting she had not yet received final guidance). To avoid asking for additional levy in economic support, the director said the department will not fill a current vacancy in that unit in 2026, citing a prior county resolution (2015) that calls for position reductions if levy increases are required.

Committee members asked for follow-up and for the department to return with an updated budget after the county executive and finance committee review. The director said the budget will go to executive/finance and then return for more committee review; she also said she has contingencies if administrators request further cuts.

Supporting details provided by the HHS director included: base county allocations of roughly $500,000 to the children’s unit and a similar amount to Hemlock Lane (as budgeted to support local operations); a combined placement fund balance of approximately $1.3 million that the director said the department keeps available for high-cost placements; and an example of a placement that was averted this year that the director estimated could have cost about $1.6 million.

Committee members and staff discussed behavioral health pressures, recruitment challenges for licensed therapists, and how increased program costs reduce the available base county allocation used for administration and other services. The director said behavioral health increases “eat up more and more of that base county allocation,” and she flagged that some crisis and service contracts may need adjustment.

No formal vote or budget adoption occurred at the meeting; the presentation was informational. Staff were directed to bring updates to the next committee meeting after executive/finance review.

The department will also monitor pending revenue items (including Medicaid cost reporting and other expected reimbursements) that are not reflected in the June financial reports, the director said. She emphasized managers are seeking efficiencies before proposing levy increases.