County HHS warns SNAP, Medicaid cost-share changes and juvenile corrections proposals could tighten 2026 budget

Walworth County Health & Human Services staff told the board July 16 that recent state and federal budget actions offer a temporary reprieve on youth correction placement costs but leave significant uncertainty about program funding and possible county budget cuts in 2026. A county HHS staff member summarized changes in the state budget and federal rules and said the county had been “scared” by a proposed juvenile corrections daily rate that would have reached roughly $2,500 per day. The presenter said Governor Tony Evers used a line-item veto that reduced the rate to about $501 per day for the first year of the biennium and to roughly $700 per day in the second year — a change the presenter called a “two-year reprieve.” The presenter said the county has not budgeted for juvenile correction placements in 2025 and does not currently plan to include such placements in the 2026 budget, though officials would adapt if placements became necessary. Board members and staff also discussed several other budget changes. The presenter said Walworth County will see an increase in the aging and disability resource allocation that amounts to about $30,000 locally and a modest 2.5% increase in foster care rates (about $10,000 for the county). The state will also provide funds to support the 988 suicide and crisis lifeline, which the presenter said may reduce county emergency mental-health call volume. On the federal side, staff outlined two major risks for county finances: the expansion of work requirements for SNAP and Medicaid and an increase in the federal/state administrative cost share for SNAP benefits. The presenter said Medicaid and SNAP work requirements will apply to people ages 19–64, expanding the cohort subject to requirements. More consequential for county budgets, the presenter said, is a federal change that would raise states’ contribution to SNAP administrative and benefit costs from a 50% share to about 75%; because the state currently passes that cost to counties, the county could face a substantial new expense. County staff said state Department of Health Services (DHS) officials have told counties they plan to ask the state to “keep counties whole” on the SNAP cost-share change and have asked counties to join advocacy efforts. If the state does not backfill the increase, staff estimated Walworth County could face between about $62,000 and $125,000 in 2026 and as much as $250,000–$500,000 annually thereafter depending on calculation method. Staff said those figures remain estimates and that DHS has also suggested asking for additional funding to help income-maintenance consortiums address increased workload and error-rate pressures. Board members raised concerns about service reductions and staffing risk if the county must absorb those costs. One supervisor said rural hospitals and communities could be disproportionately affected if residents lose insurance and hospital closures follow, increasing travel distances for care. Staff recommended continued advocacy with DHS and the Wisconsin County Human Services Association and said they would bring formal requests to the board if statewide advocacy failed to preserve county funding. Ending County staff framed the current mix of state and federal changes as “objectively interesting” and uncertain. The board did not take an immediate formal vote related to the federal SNAP/Medicaid changes on July 16 but directed staff to monitor developments, pursue coordinated advocacy through state associations, and return with specific requests if needed for the 2026 budget cycle.