Dunn County human services budget shows shifting figures as board hears public hearing overview

Paula (Human Services director) opened the Aug. 21 public hearing on the Dunn County Human Services proposed 2026 budget and told the board the levy request and overall numbers have shifted several times during the drafting process. She said the department initially identified an additional levy request in the low hundreds of thousands but presented several revised figures during the meeting as new information arrived.

The budget matters because changes to grant funding and state reimbursement rules affect what programs the county can sustain and how much taxpayer levy must cover. Human Services staff told the board they removed two full-time positions from the draft to reflect discontinuing grants, moved staff and expenses between programs, and incorporated estimated salary and fringe increases.

Paula said one of the major changes was the end of the first-episode psychosis grant: staff working under that grant will move to Medicaid-billable provider roles (CCS) and the county will not be able to serve people who lack Medicaid coverage under that model. She also said funding for a family-and-children services unit was no longer available and adjustments were made in salaries and program allocations to account for reduced external revenue.

Board members and staff repeatedly noted that figures presented on screen during the hearing differed from the packet that had been publicly noticed. Paula and Dan (staff) told the board the on-screen figures reflected updated health-premium and fringe information received after the packet was posted. Paula said the county budgeting process is “always in flux” and numbers can change between notice and hearing.

Financial risk and timing were raised as central concerns. KT (Health Department director) and Paula both flagged a separate statewide budget change that reduced county ability to bill certain Medicaid administrative costs: the department had been assuming a 50% reimbursement on a portion of indirect/AMSO costs when preparing the draft; the new biennial state action reduces that to 25% starting in mid‑2025, and the county has not yet received clear guidance or replacement funding. Paula cautioned the board the 50% assumption remained in the draft 2026 budget only because the state had not confirmed how it would address the change, and that the department may need to revisit projections when the state clarifies policy.

Fiscal pressure will also come from client placement costs. Paula informed the board that staff had signed a new placement contract for a child with very high needs at a daily rate of $1,300 — roughly $474,000 on an annualized basis — and that this placement was not included in earlier year-to-date projections. She said the department had exhausted other placement and in‑home supports before approving the contract because providers were unable to safely continue care.

The board took no formal action to adopt the budget at the hearing. Later in the meeting the committee approved several budget adjustments (see actions attached to the article) including a $100,000 award to support evidence-based harm-reduction strategies; that adjustment was authorized at the meeting with a required match provided from the county’s opioid settlement funds. Paula and other staff said they would continue to update the board as grant and reimbursement figures change and bring revised budgets back as new information becomes available.

What happened next: The board adjourned the human services budget public hearing and proceeded with regular meeting business including minutes approval and subsequent budget adjustments. Staff said they will return with updated budget information as the state clarifies Medicaid administrative claiming and as placement costs and other high‑cost, unpredictable needs emerge.

Quoted material in this article is taken from the meeting transcript of the Dunn County Health and Human Services Board, Aug. 21, 2025. No facts beyond the transcript were added.