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Beltrami County administrator outlines risk to services if state and federal funding is cut
Summary
Administrator Tom Barry told the county board that audited 2023 revenue shows about $49.2 million in state and federal funding and warned that proposed state cost shifts and federal uncertainty could force service reductions or levy increases.
Beltrami County Administrator Tom Barry presented a detailed review of federal and state revenue sources and warned the Board of Commissioners that proposed state cost shifts, administrative rule changes and federal uncertainty could substantially affect county services and budgets.
Barry told the board the county’s audited 2023 financial statements show roughly $8 million in direct federal funding and about $41.2 million in state funding, for a combined $49.2 million in intergovernmental revenue. He said intergovernmental funding accounts for roughly 43 percent of the county’s revenue while property taxes account for about a third. “When that money starts to wane back a little bit, then we feel the impact a lot more than we would otherwise,” Barry said.
Barry outlined how federal funds are used — including public health, WIC and SNAP programs and a dominant share for health and human services — and how state revenues support highway aids, public safety aid, county program aid, local homeless prevention and other programs. He said about 73 percent of the county’s federal receipts support health and human services.
The administrator then described possible near-term impacts from state budget proposals and formula changes: a roughly $2 million cost shift to counties flagged in the governor’s budget proposal; a $148,000 cut to an opioid-related prevention allocation; and a $1.3 million implementation cost associated with the African American Family Preservation and Child Welfare Disproportionality Act as estimated for the county. Barry warned that rulemaking and funding-formula adjustments can have immediate, large local effects — for example, he said a change in demolition landfill rules could shorten the useful life of the county’s demolition landfill and cost the county an estimated $9.1 million.
Barry said federal changes are also in play and called the current national environment “very dynamic,” noting freezes, reorganizations and litigation that make predicting federal pass-throughs and grants difficult.
Commissioners acknowledged the difficulty of planning under uncertainty. Commissioner Gould encouraged constituents and local leaders to contact state and federal legislators, and Commissioner Sumner thanked Barry and county staff for compiling the information. Barry said county staff are preparing a more detailed study to quantify the cumulative effect of mandates and funding shifts.
Barry noted the practical limits of local response: a 1 percent levy increase in Beltrami County nets roughly $300,000, a modest sum against multi-million-dollar state shifts. The board did not take formal action on the presentation; the item was informational.
