Cass County officials warn 3% property-tax cap could create multimillion-dollar shortfall, threaten public-safety staffing

At a Cass County Commission meeting, county finance staff warned that proposed state legislation to limit property tax increases to 3% for taxing districts could leave the county with about a $4 million annual revenue shortfall under current forecasting assumptions.

Brandy Madriga, presenting a legislative outlook and five-year forecast, said county staff ran the 2025 budget through a model that applied a 3% cap to existing taxable property. "From this exercise, we have determined that a 3% cap would put the county into potential $4,000,000 a year deficit" she told commissioners. Madriga said the forecast assumes no additional full-time employees beyond those already budgeted and noted the county budget relies heavily on property tax revenue — about $57,100,000 was budgeted for 2025.

The presentation outlined how the county has kept its mill levy well below the charter maximum, reduced its mill levy as valuations rose, and relies on property tax revenue to fund core services including roads and bridges, public safety communications, senior services and capital projects. Madriga highlighted that the county recently funded a jail expansion in cash — a $32,000,000 project paid with ARPA and CARES funding — that adds 192 beds and will raise annual operating costs. "It is anticipated that this jail expansion will add approximately $4,700,000 to the county's annual budget," she said, and noted the county chose to absorb inaugural-year expenses from uncommitted general funds rather than immediately raising taxes.

Commissioners and county officials debated the fiscal implications and how cuts might be handled if a 3% cap becomes law. Commission Chair (unnamed in the transcript) said the county had planned a phased staffing approach for the jail pod — "that staffing would ramp up in 50% and then 50% in 2026" — but said state decisions have already affected inmate flows and the county directed the sheriff to hire based on anticipated demand. Sheriff John (surname not specified) questioned whether the projected $4.7 million annual increase included the full cost of new staff; Madriga replied it did, with "about $3,000,000 in perpetuity for 29 FTEs and about $1,700,000 for ongoing operations and maintenance."

Sheriff John and another county official urged more public education about the connection between potential tax limits and public-safety staffing. "I just think that the public is at risk here," the sheriff said, asking for information to share with residents about how proposals could affect jail staffing and emergency response. Commissioner Flacco and others said they expected the Legislature to winnow proposals by late February and March and discussed working with state legislators to seek compromise. The presenters noted multiple competing bills are expected and repeatedly referenced House Bill 1176 as one vehicle under discussion.

Madriga also walked commissioners through revenue and expenditure pressures beyond staffing: rising construction and equipment costs, high salary-and-benefit shares of the budget (about 64%), and increases in IT, fleet and insurance costs. She warned that a caps-driven revenue constraint could limit the county's agility to respond to growth and to fund mandated services such as courthouse operations, election administration and building maintenance for state-provided services.

The commission did not take a formal vote on policy during the presentation but asked staff to circulate the slides and supporting talking points. Madriga said she would email the presentation to commissioners and that a one-page talking points sheet was available. Commissioners and the sheriff discussed continuing recruitment and academy schedules for correctional officers despite legislative uncertainty; commissioners reaffirmed their earlier direction for the sheriff to continue filling positions to staff the new pod.

The presentation and discussion are part of ongoing county engagement with the legislative session. Commissioners said they will monitor bill movement and fiscal notes as the session proceeds and continue coordinating messaging with state partners.