Sen. Carla Nelson tells Olmsted County board counties face unfunded mandates, paid‑leave premium increases and a shifted cannabis tax

Sen. Carla Nelson on Aug. 7 told the Olmsted County Board that the recent legislative session left counties to absorb new costs and that some policy changes will increase local fiscal pressure.

Nelson said the biennium began with a large surplus but that a projected $6 billion hole during the session made budget choices difficult. She warned commissioners about unfunded mandates enacted in prior sessions, including Earned Safe and Sick Time and the upcoming paid family medical leave program.

Nelson said the paid family medical leave premium was increased from 0.7% of payroll to 0.88% and estimated that local governments collectively would pay about $217.1 million to fund the program; she said counties alone might see costs of approximately $11.3 million in 2026 and $11.7 million in 2027 before accounting for the premium change. She said the exact impact to Olmsted County was not calculated during the presentation.

On cannabis tax policy, Nelson said the session increased the tax on cannabis to 15% but added that, contrary to some expectations, the full 15% is now being retained by the state rather than being shared with counties and cities; she called this a “purely unfunded mandate” for counties required to implement related programs.

Nelson also noted disappointment that the recent bonding bill did not include any priorities submitted by Olmsted County, Dodge County or the City of Rochester, and she encouraged commissioners to continue outreach to lawmakers on local project priorities.

Nelson concluded by urging the board to reach out with questions and saying she would continue to track security and other issues at the Capitol.