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Southwest Health & Human Services presents 2025 financials and flags costs tied to caseloads and legislation
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Summary
Southwest HHS told the board it ended the year with roughly $16.2 million in cash/investments ($13.5M excluding restricted funds), outlined budget pressures including health insurance and union wage increases, rising probation and out-of-home placement costs, and warned that pending state legislation and mandates could shift costs to counties.
Southwest Health and Human Services staff delivered their annual multi-county update, reporting year-end fund balances, staffing levels, program trends and legislative risks that could affect county services and budgets.
Lisa Devore, director of business management, said the agency ended the year with an overall cash/investment balance of about $16.2 million and $13.5 million when restricted funds are excluded. "When you exclude designated restricted funds, we were at 13,500,000," she said. She also said the agency's self-insurance fund was about $1.3 million and public-health and human-services fund balances were steady.
Nancy Walker, deputy director, summarized program-level pressures: a recent union agreement includes 5.5% salary increases for 2026–27 plus a $3 differential for select positions; health-insurance costs rose about 9% (roughly $300,000), which the agency agreed to split between employer and employee; and the agency closed the year with fewer open positions than in prior years. Walker said about 13,500 income-maintenance cases are typically open across the six-county region and warned that removal of federal fiscal participation and potential changes to SNAP-administrative costs could mean hundreds of thousands in new county expenses.
Presenters also highlighted several service-cost concerns: probation and out-of-home placement daily rates have driven the county toward a $1,000,000 mark in placement costs; a rise in 72-hour holds and commitment-related costs (noted at roughly $1,400 per day per client in some placements) is increasing county obligations; and a newly passed Minnesota law (the Minnesota African American Child Welfare Disproportionality Act) will require additional implementation work by January 2027, and could be costly to counties.
Public-health director Carol Buren said immunizations, substance-use prevention and mental-health work will be priorities in 2026, and highlighted the WIC program’s local reach (112 households served in Murray County and some $141,000 in redeemed benefits).
Board members asked follow-up questions about vehicle procurement decisions, tracking of positions and audit items; presenters said the audit was generally favorable and that work continues to modernize antiquated systems.