Hubbard County sets 2026 budget calendar and plans legislative outreach over possible PILT cuts

County administration presented the proposed 2026 budget calendar and flagged a potential state change to the state PILT (Payment in Lieu of Taxes) formula that could significantly reduce county revenue.

A staff member reviewed a proposed timeline for budget actions — including approval of a five‑year capital plan in May and a public hearing in June — and said the county will set exact dates in coming weeks. The presenter warned that, if the state proposal stands, the change to the PILT payment formula could amount to a roughly 34% reduction for affected counties; staff said nine to a dozen Minnesota counties would be significantly affected and that the board should prepare for a large fiscal impact in 2026 if changes proceed.

To pursue legislative engagement, staff confirmed they had scheduled a continuation of next week’s meeting at 2 p.m. with Sen. Torrey Utke for a legislative update; the presenter said most commissioners had indicated they preferred a schedule that would not interrupt the regular session. The presenter also said staff would invite other local legislators and stakeholders to the meeting.

Commissioners discussed the broader state context and efforts in the Legislature to resist disproportionate cuts to northern counties. During the conversation, participants referenced media reports about a recent 3M property transaction that had been publicly reported at approximately $5,000,000; the meeting did not record a formal county position on that sale or its accounting treatment.

Staff said they will continue to update county projections as the legislature and agencies release finalized budget numbers and that the schedule will guide the county’s 2026 budget work in light of these potential state changes.