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Cook County PHHS reports $3.13 million fund balance, urges no reserve draw in 2026
Summary
Public Health & Human Services staff told the board that 2025 revenues exceeded some expenditures, leaving an unrestricted PHHS fund balance of $3,125,945, and recommended not using reserves in 2026 amid uncertainty about future state and federal funding.
Plamondon, a staff member presenting the Public Health and Human Services (PHHS) 2025 financial report, told the board that the department ended 2025 with an unrestricted fund balance of $3,125,945 and that actual expenditures across PHHS were about 6% higher than budgeted in places where demand rose.
The report attributed the overage largely to increased social services program costs, higher adult and children's out-of-home placement and mental health placement costs, and expanded mobile crisis response expenses. Plamondon said the agency had budgeted to use $566,645 of fund balance for 2025 but recorded an actual use of $155,887.
Why it matters: PHHS receives a large share of its revenue from state and federal grants; for 2025 those sources accounted for 46% of PHHS revenue (21% federal, 25% state). Plamondon warned that a growing share of costs may shift to the county if federal or state support declines, and recommended that the board not draw on PHHS reserves in 2026 (a recommendation the presenter said he planned to repeat for 2027).
The presentation broke down department results: economic assistance spent 96% of budget, with client programs below projections and a timing-related EHR payment moving personnel line items; social services ran 3% over budget overall with out-of-home placement costs at 122% (12 children in placement in 2025) and mental health services at 208% largely for state-operated placements and mobile crisis grant expenditures. Mobile crisis costs are, the presenter said, 100% reimbursable under the existing grant.
Commissioners pressed staff about several items during the review. One line of questioning focused on a 148% overage in the "miscellaneous" line, which the presenter said reflected a reclassification of grant funds to pay salaries for an adult mental health worker under the Arrowhead Behavioral Health Initiative rather than program supplies. Commissioners also asked about time-reporting practices in the SSIS system; staff and several board members emphasized that more accurate program-related time entry drives billing and future grant allocations.
On reserves, the presenter reminded the board that Minnesota auditors recommend holding roughly 42% of annual operating costs in reserve (five months of operations). He described the existing unrestricted PHHS fund balance relative to the recommended target and recommended not using fund balance in 2026 to preserve liquidity in case state or federal support declines.
Looking ahead: staff said they will bring more detailed department-level slides and invite contracted partners (for example, Carlton County for child support administration) to a future meeting to explain program trends. The board did not take a formal action on using or not using the fund balance during the presentation; the presenter said he would include the recommendation in next year's budget materials.
