County lays out budget assumptions; employee compensation flagged as top priority

Marathon County administrators outlined initial assumptions for the 2026 budget at the July 17 board meeting, emphasizing uncertainty in shared revenue and insurance markets and identifying employee compensation as the top priority. Administrator Leonard told supervisors the assumptions are an iterative starting point for department budget submissions and warned several numbers will change as the state and markets update projections. He said recent state budget actions that exempted certain sales-taxable items — notably some utility-related expenditures — reduced the county’s projected shared revenue and that updated estimates were being requested from the Wisconsin Counties Association. Health and property insurance assumptions also require revision, Leonard said. The HR Finance packet showed a 16.5% increase projected for “other insurance,” a figure based on the county’s broker and market trends; Leonard cautioned that the 16.5% figure is not final and the county will work with its insurers to mitigate impacts. Why it matters: the assumptions will guide department submissions and the administrator’s proposed budget in September; changes in shared revenue, net new construction valuation and insurance costs change county revenue-pressure and spending choices. Supervisor Chair Robinson and Leonard said the top budget priority is employee compensation. The county adopted a wage scale in 2022 using early-2022 data and implemented it in 2023; Leonard said the scale has not shifted since and initial consultant analysis suggests the scale may require an approximately 10% adjustment. More detailed cost estimates and an implementation plan are expected for HR Finance in August. Other discussion: supervisors noted the assumptions drive operational changes — examples included a county wellness clinic to control health-care costs and exploring options to reduce utility usage at county facilities. Leonard said a budget amendment related to a CPZ grant will appear on the HR Finance agenda before the end of the month. The transcript records discussion and next-step scheduling but no formal budget adoption at the meeting.