Sawyer County HHS holds budget public hearing as officials flag revenue uncertainty and rising out-of-home costs

Sawyer County Health and Human Services opened a public hearing Aug. 12 on preliminary 2026 budget figures, with staff saying revenues are uncertain and out-of-home care expenses are driving projected deficits.

"These are preliminary numbers that are going to need some work, because we are under budgeting on our revenue and over budgeting on our expenses," Julia, a department staff member, told committee members as the hearing opened. She said the department is unsure about several grant streams and has been conservative in revenue assumptions.

The department identified two main pressure points. First, revenue estimates are unclear because some grants are still unconfirmed. "Some things we kinda hear that they're not coming, and then other times we hear that they're coming," Julia said. Staff said they will continue to pursue competitive grants and other revenue sources; Carrie, a HHS staff member, said the department had identified new billing opportunities and several grants that will add revenue.

"We have the YJ Innovation Grant and the Community Partnership for Diversion Grant; those both came through this year so that's about $300,000 in revenue opportunity," Carrie said, referring to youth and diversion-related funding secured for current operations.

Second, staff said large out-of-home placement costs are a principal driver of the projected deficit. Mike, a staff member, said contracted and out-of-county placements have been "one of the things that's really driving our deficit," and noted efforts to reduce those costs by using nearby crisis beds and pushing for faster transitions out of higher-cost facilities.

Julia and other staff described operational adjustments the department is pursuing: billing for case-management services that previously were not billed, increased use of crisis-bed capacity in Ashland (provided by Northland), closer case management to reduce out-of-county placements, and collaborative diversion programs with the district attorney and juvenile justice partners.

Staff also discussed program-specific revenue treatments. Julia explained changes in WIC administration after Sawyer County joined a regional consortium: "All of the revenue is coming in to [the consortium], and then we invoice them" for the county employee providing services; the budget includes a $15,000 placeholder that staff said could be the county's share for those services. Julia also warned that state changes to licensing of tourist rooming houses could alter fee schedules; the county will wait for state adoption before changing local fees.

Committee members asked for more detail on program-by-program revenue and flagged areas where the draft figures appear low. Julia identified an issue with the county's accounting for a state program, saying projected revenue was calculated at $4.65 (figure in draft) but should be nearer $5.52, and the department will correct that estimate.

The public hearing concluded after staff responded to questions. Procedural motions to open and close the hearing were made and approved; committee members later approved the minutes from the July 8 meeting.

Staff said the department will return to the board with refined revenue and expense estimates and that next steps include pursuing identified grants, developing more precise billing projections for case-management services, and continuing efforts to reduce out-of-county placement expenses.

Ending: Department staff requested input and said they will present updated budget figures as they refine revenue assumptions and track out-of-home placement costs.