Beltrami County staff present 2026 preliminary budget; recommend 9.63% levy increase driven partly by state and federal cost shifts

County administrators presented a preliminary 2026 budget that would increase the county tax levy by 9.63 percent, citing significant state and federal cost shifts and rising operational costs.

The county administrator said the proposed levy increase would generate about $3.2 million in additional revenue for 2026. He described two principal drivers: operating‑cost increases (utilities, insurance, wage and benefits pressure and rising demand for services) and a projected state/federal cost‑shift amount the county plans to absorb. “About $1.2 million of that $3.2 million is attributed to state and federal cost shifts,” the administrator said, and the preliminary budget built in a $700,000 cost‑shift contingency to smooth future impacts.

Administrators described several specific state reductions and shifts that influence the budget: changes in probation funding that result in a net local increase (about $185,000), reductions in SNAP administration reimbursement, reductions in behavioral‑health funds and issues around competency restoration funding. The administrator said the county expects further state reductions in coming biennia and estimated that, without legislative relief, the county might face another $3–4 million in cost shifts by FY 2028.

Staff said the overall FY2026 budget shows only a 2% increase in total revenues compared with FY2025, in part because one‑time bond proceeds used in 2024 (for the jail project) no longer appear in the base. The administrator said most departments show flat or reduced operating requests and that the county added two temporary positions for recent storm debris work; those temporary positions are budgeted to expire in two years. Staff also noted that health and human services has lost seven positions through attrition in the last two years and that some unavoidable increases (probation, human resources due to Paid Family and Medical Leave, facilities capital work) drive parts of the budget above line.

The administrator explained adjustments to community programs and apportionments and noted that the county’s reliance on intergovernmental revenues has declined, pushing taxes to make up a larger share of the budget (taxes currently just over 40% of revenue). He said the county has adopted budget principles to involve the board earlier in budget development, smooth levy increases, reduce property tax subsidies for discrete services, and update fees to better reflect costs.

The board set deadlines in the budget timeline: a required September preliminary adoption step and a state‑mandated public hearing in December ahead of final adoption in mid‑December. Administrators asked commissioners to advise if they wanted additional budget meetings before the Sept. 30 preliminary levy action.