Carver County lobbyists warn state budget moves shift costs to counties; highlight human services, housing and transportation outcomes

Tony Albright, the county’s legislative representative, told the Carver County Board of Commissioners at a July work session that the 2025 Minnesota legislative session and subsequent special session produced a mix of defensive wins and ongoing risks for counties.

“To say that the session started smoothly was uncharacteristic,” Albright said, describing a tied legislature earlier in the year and a roughly $6,000,000,000 budget shortfall that set the tone for bargaining and cost shifts.

The briefing summarized several outcomes with direct effects on county budgets. Lobbyists said many proposals used cost-shifting to meet a balanced-budget requirement and that counties remained a frequent target for those shifts, particularly in transportation and human services. Commissioners and staff repeatedly framed much of the lobbyists’ work as defensive—fending off larger proposals to move costs to local governments—while noting the risk that shifts could reappear in future policy years.

Courtney Jasper, a lobbyist identified as “with Polhas,” reviewed health and human services priorities the county had pushed during the session. Jasper said temporary pauses or carve-outs the legislature had previously enacted were allowed to expire and that some county exposure will resume on July 1, 2025. She also described partial program investments meant to expand capacity.

The briefing listed specific items discussed by lobbyists and staff:

- Human services: Lobbyists warned of a significant exposure for county residential services; they cited a potential cost shift “of up to probably $90,000,000” statewide tied to residential services. The session created a long-term services and supports advisory council to study cost-saving reforms and broader policy options, but lobbyists said more legislative work is likely during the policy year.

- 48-hour rule and capacity: Jasper said the two-year pause on certain liability/exposure (“does not meet criteria” funding) ended and that counties will again bear some costs beginning July 1, 2025. The bonding bill set aside $75,000,000 to demolish and rebuild the Miller Building at the Anoka Metro Regional Treatment Center; Jasper said that project should add about 55 beds once completed.

- Earned sick and safe time (ESST) and paid family and medical leave: The legislature adopted administrative and operational changes to ESST that lobbyists said reduce some employer burdens—allowing reasonable notification policies for unforeseeable use, lowering required documentation from three days to two for consecutive absences, and clarifying voluntary shift trades and projected-accrual reconciliations. The paid family and medical leave program’s annual premium cap was reduced from 1.2% to 1.1% of taxable wages and takes effect Jan. 1, 2026, but lobbyists noted large IT and implementation requirements remain.

- Housing and LAHA: The cash bonding bill included roughly $2,400,000 for local public housing programs, and the Local Affordable Housing Aid (LAHA) program was amended to require that LAHA funds be used for qualifying projects. Lobbyists described housing as an area with widespread attention but limited legislative action in 2025.

- Transportation and Met Council funding: The session included language expanding the eligible use of funds for Trunk Highway 5, and lobbyists said the Met Council received roughly $24,000,000 in fiscal 2026 and about $27.2 million in fiscal 2027 for parks and trails projects approved by metropolitan park implementing agencies. Lobbyists also said some traditional regional park and trails projects and nonprofit local projects did not receive the same bonding inclusion as in prior years.

- Regional policy items and offsets: The legislature broadened allowable greenhouse gas offsets to include ecosystem restoration, afforestation, wetland conservation, restorative agricultural practices, and certain land acquisitions.

- Other program funding: The state allocated $35,000,000 to modernize the SSI (case-information) system used by social service workers, Jasper said, to help caseworkers pull data and better manage cases. Jasper also flagged a change to MenChoices reimbursement that allows verbal attestation in some circumstances but moves the program to a flat reimbursement rate, which she said will increase county costs.

Board members and staff pressed lobbyists on next steps for offensive strategy in 2026, opportunities for bipartisan work, and how counties should prepare in the interim. Several commissioners emphasized relationship-building with state legislators, joint advocacy with school districts and other regional partners, and earlier engagement with task forces that will form in coming weeks.

Commissioners and staff also discussed other operational pressures, including a growing shortfall in the county’s DMV operations (which the briefing said serve many nonresidents and are currently subsidized by the county) and longer-term infrastructure concerns tied to the county’s 2050 comprehensive planning and sewer capacity in eastern Carver County.

The board was briefed on recent state political developments the lobbyists said will affect the legislature’s composition and work: special elections called after the assassination of state Speaker Emerita Melissa Hortman and related incidents on June 14; the conviction and pending resignation of Sen. Nicole Mitchell; the death of Sen. Bruce Anderson; and other potential special elections if members win other offices. Albright and Jasper recommended that commissioners meet earlier with legislators and participate in interim work groups to shape policy and funding options before the 2026 session.

No formal board actions were taken during the work session; the meeting was advisory and informational only.