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Kenosha County warns of a tight 2026 budget as grant, health-insurance and inmate revenues remain uncertain
Summary
County leaders told supervisors at a 2026 budget vision meeting that state and federal grant uncertainty, rising health-insurance costs and lower-than-expected federal inmate revenue will tighten next year’s budget and force difficult choices.
Kenosha County Executive Samantha Kirkman told a county budget vision meeting that the 2026 process will be difficult, saying, “this might be the most challenging budget, that I have undertaken in my role.”
County finance and budget staff told supervisors the county closed 2024 near even but faces several headwinds for 2026, including uncertain state and federal grant flows, continuing health-insurance cost pressures and a likely shortfall in revenue tied to U.S. Marshals inmates and inmate phone contracts.
Finance Director Daniel Gashke said the county “did close 2024 pretty close to bridal even” after year-end adjustments that reduced what had looked like a larger Unassigned General Fund deficit to “just under a hundred thousand dollars.” Budget Director Arna Vens highlighted both near-term positives and risks: a state court ruling that could help biennial budgeting at the state level and stronger-than-expected early 2025 sales tax collections, but also multi-year health-insurance cost growth and persistent sheriff’s-office pressures.
Staff warned supervisors that a sizable portion of county revenue depends on intergovernmental sources. At the meeting finance staff said that, for the 2025 budget, roughly $294 million in total revenue included about $96 million in state and federal intergovernmental funds — roughly one-third of total revenues — making county finances sensitive to changes in state and federal budgets.
Officials said several specific federal and state programs are in flux. The Federal Emergency Management Agency’s Building Resilient Infrastructure and Communities (BRIC) program was mentioned as recently canceled for new applications, removing a near-term capital grant opportunity. Separately, the Federal Communications Commission (FCC) is reviewing inmate-telecom rules; county staff said that action could materially reduce commissary/phone revenue now budgeted and that the direction and timing of any change remain unknown.
County leaders urged supervisors to prepare for scenario planning rather than fixed assumptions. “If Medicaid funding is cut and BadgerCare is cut, then those employees are going to have to go on our health insurance,” a county executive aide said during questions, flagging a potential indirect cost to the county if state-funded health coverage changes.
Supervisor questions during the session focused on how much the county can rely on grants, how large potential gaps might be and which services would be prioritized if funding falls short. Staff responded that bonding cannot be used for operations and that program reductions, re-prioritization or one-time capital changes would be the levers available if state and federal funds decline.
County leaders said the formal 2026 budget manual and rollout will occur over late spring and summer. Staff encouraged supervisors to review the packet materials posted online and to engage early in the timeline that culminates in fall budget presentations and borrowing decisions.
Meeting participants were repeatedly cautioned that many details remain unsettled, and staff said they will present scenario analyses as more definitive state and federal information becomes available.
