Hennepin County releases $3.09 billion proposed 2026 budget; board moves to set maximum levy

County Administrator Wettland presented a proposed 2026 operating and capital budget totaling $3,090,000,000 and recommended a net property tax levy of $1,130,000,000, a 7.79% increase from the 2025 adjusted levy. The administrator told the Hennepin County Board of Commissioners on Sept. 16 that the operating budget equals $2,730,000,000 (a 7.2% increase, or $182,300,000, above the 2025 adjusted operating budget) and that the county is proposing investments including $1,380,000,000 for employee compensation and benefits and a 2026 capital budget of $365,900,000.

The administrator said the proposed 2026 budget assumes a total of 9,762 full-time equivalent positions, representing a net reduction driven by managing vacant positions (the package reflects a reduction of 249.7 vacant FTEs compared with the 2025 adjusted budget). The presentation identified key budget drivers: reductions and cost shifts in state and federal funding (including changes to Medicaid and Supplemental Nutrition Assistance Program benefits), rising staffing costs (for example, health insurance), higher debt service tied to previously adopted capital programs and higher construction costs, and ongoing investments intended to eliminate racial disparities across seven domains and integrate climate action into county programming.

Administrator Wettland said the county modeled an initial annual cost shift of $8,000,000 to Hennepin County starting in 2026 tied to SNAP changes, with potentially greater impacts later. The proposed capital program includes $227,000,000 toward roads, bridges, trails, bus rapid transit and other transportation infrastructure, and additional sums for corrections, health and human services facilities, libraries, and operations and technology. The 2026–2030 capital improvement plan totals $3.8 billion, the administrator said.

Commissioners discussed the budget at length during the meeting. Several commissioners thanked county staff and highlighted particular concerns: the pressure of federal and state funding changes being shifted to counties; the county’s role supporting the safety-net hospital and uncompensated care; and public safety and jail staffing pressures. Commissioner Fernando said he supported setting a maximum levy slightly above the administrator’s proposal to provide contingency. Several commissioners stressed the board’s intent to avoid layoffs and instead manage costs through attrition and position holds where necessary. The board also discussed the timeline: budget hearings will occur beginning Sept. 29, with additional line-of-business hearings through October and November, a Truth-in-Taxation public hearing on Dec. 2, and final budget adoption Dec. 11.

On motions related to the budget the board voted to set the 2026 maximum property tax levy and proposed budget (motion moved by Commissioner Fernando; seconded by Commissioner Conley) and to proceed with the public hearing schedule set out by administration. The board also progressed the proposed operating and capital budgets to the board’s committee schedule for further review and set the capital program hearing for Oct. 20. Administrator Wettland told commissioners the proposed budget includes a roughly $10,000,000 contingency and that department-level revenue strategies and expense management will continue throughout the fall.

Why it matters: County property taxes and federal/state funding flows directly affect resident services including housing assistance, public health, corrections, libraries and public infrastructure. Commissioners emphasized the budget’s role in sustaining a wide range of safety-net and infrastructure services while warning that continued federal and state shifts will require more difficult choices during the fall amendment process.

Outlook: The board will continue line-of-business hearings through October and November, accept amendments and administrator changes, and hold the required public hearings in November/December before adopting a final 2026 operating and capital budget on Dec. 11.