Beltrami County budget committee proposes 9.63% preliminary levy increase as state and federal cost shifts bite

Beltrami County administrators outlined a preliminary fiscal year 2026 budget that includes a recommended preliminary levy increase of 9.63%, driven largely by state and federal cost shifts in health and human services and probation operations.

Tom, the county administrator, told commissioners the county relies heavily on intergovernmental revenue and that recent and expected reductions in state and federal funding have shifted costs to counties. He described projected mandate‑driven cost increases in the current biennium of roughly $700,000 (a first‑installment contingency target) and warned of larger cost shifts — $2 million to $3 million — that could arrive by FY28–29 in the health and human services arena if trends continue.

Specific near‑term adjustments included an estimated probation cost shift of $185,000 tied to a state formula change; competency‑restoration costs of about $200,000; a SNAP administration reimbursement reduction of about $100,000; and a $30,000 reduction in behavioral health funding. Tom said those shifts, together with usual operational pressures (insurance, staffing, utilities, fuel and supplies), informed the budget recommendation.

The budget committee and administration developed a set of budget principles and the board provided two directives: (1) that the levy should not exceed 10% and (2) that the budget should prioritize mandated and mission‑critical operations. Tom said an initial department-driven levy proposal started near 16.5% and was reduced administratively and through the committee to the current 9.63% recommendation. He said roughly $333,000 is generated per 1% of levy.

Community program funding was a significant focus. Administrators recommended reducing county contributions to community programs toward state‑mandated minimums in order to preserve mission‑critical services. The county's contribution to the KRLs library system was highlighted: the state minimum mandated contribution for the county is $265,162; the county has historically paid amounts well above that and over roughly the last decade contributed about $4.4 million compared with the state-minimum obligation of about $2.9 million. The recommended budget would shift the county contribution toward the state minimum level, prompting objections from some commissioners who urged finding reserves, ARPA funds, or other offsets to preserve library funding.

Administrators also proposed two temporary FTEs for solid waste to respond to storm and debris workloads and a net zero change in total staffing for the budget year by identifying reductions elsewhere, including proposals to reduce two positions within Health and Human Services (part of seven HHS reductions over two years accomplished through attrition, the administrator said).

Tom described a recent storm with an estimated $9 million impact to county infrastructure, for which the state agreed to cover 75%; the county would be responsible for the remaining roughly $2.25–$2.75 million and would front costs before receiving reimbursement, with that reimbursement timeline expected to be around a year.

Administrators proposed targeted use of American Rescue Plan Act (ARPA) funds — roughly $344,000 requested in the FY26 proposal for specific one‑time items (motor pool vehicles, computer replacements, snowplow units, and partial funding for rooftop units) — and recommended preserving ARPA for one‑time expenditures.

No formal levy vote was recorded in the transcript excerpt; Tom reminded commissioners the board must pass a preliminary budget by the end of the month or else the county reverts to the previous year's budget under state statute. Commissioners asked about storm impacts, library reserves, and alternatives for community program funding; several commissioners signaled disagreement over proposed library cuts and urged exploring reserves or other funding mechanisms. The budget will return to the board for further deliberation and a preliminary levy vote.