Winona County board weighs 2026 budget, use of fund balance and levy options

Maureen Holti, the county administrator, told the Winona County Board that the November 19 report shows a $4,370,000 deficit in the draft 2026 budget and described staff proposals to close the gap. Holti said staff recommend using $1,100,000 of fund balance to cover capital requests and noted other adjustments — including an $80,000 addition tied to the Larry Hill Reform Act — that leave an estimated remaining shortfall of about $3,300,000.

Holti framed the choices for commissioners: pursue additional cuts (she identified $745,000 in further adjustments needed to keep the levy below a double‑digit percentage), add a dedicated local fee, or accept a higher levy. She told the board open‑enrollment results produced an unexpected $26,000 net savings on county health insurance, a figure staff will fold into the final budget.

Why it matters: commissioners said the board must balance taxpayer impacts with unfunded state cost shifts. Holti and members noted that changes adopted in St. Paul and earlier state decisions have shifted costs to counties; several commissioners said they feel constrained by the limited local revenue base and by state policy decisions that are outside county authority.

Key details: Holti said fund balance is projected to have about $2.25 million in excess at year‑end but emphasized projections are preliminary because final revenues and year‑end bills remain uncertain. The county budget includes a $1.3 million sales‑tax revenue line for the jail; year‑to‑date receipts are $856,000, creating a projected shortfall of roughly $260,000 for that line. Holti said personnel reductions already taken include 4.8 FTEs and roughly $480,000 in savings; staff have also instituted a soft hiring freeze and included $500,000 in turnover savings in the draft.

Levy and option conversation: commissioners discussed alternatives to blunt levy pressure. Holti put a vehicle license ("wheelage") fee on the table as an option other counties use; commissioners debated $5 versus $20 scenarios and staff estimated a $20 fee might generate approximately $840,000 while a $5 fee would generate about $210,000. Commissioners raised equity and administrative overhead concerns and asked staff to model effects across taxpayer categories.

Jail medical costs and the Larry Hill Reform Act: Holti described a new legal requirement that jails maintain incoming detainees' outpatient prescriptions and use a physician evaluation when there is a dispute, leading the county to pay both medications and physicians' evaluation fees. Holti said additional analysis led her to recommend increasing the budgeted inmate medical expense by roughly $80,000 (bringing a larger multi‑line estimate to about $360,000 for jail medical expenses in the affected period), and said staff will refine the number as activity continues to be tracked.

Next steps: Holti asked for direction on the levy so finance staff can prepare required paperwork for formal levy setting and auditor certification. The board set follow‑ups for the December meeting cycle, and commissioners asked for clearer, larger and indexed budget materials and for mid‑year reports on progress against targeted savings.