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Pine County administrator outlines 2027 budget pressures; $1.1M of one-time funds used in 2026 leaves a shortfall
Summary
County administrator Kelly Schroeder told the board that the 2026 budget relied on about $1.1 million in one-time funds, leaving a starting shortfall for 2027 and prompting department-level review and possible levy or program adjustments.
County administrator Kelly Schroeder presented the Pine County 2027 budget overview, warning that the 2026 budget had relied on roughly $1.1 million in one-time funds (including $536,000 in ARPA funds and other reserves) and that the county must address a projected structural shortfall in the coming year.
Schroeder said the 2027 proposal shows a $2 million gap between revenues and expenses after current assumptions and that several state-level changes are weighing on county revenues, including reduced SNAP administration reimbursements and possible long-term-services cost shifts to counties. "The 2026 budget was adopted using a little over $1,100,000 of one-time funding and reserves," Schroeder said.
She reviewed major revenue and expense drivers: highway project-related revenues increase year-to-year but are project-tied; expected reductions in boarding revenues and targeted case management funding create pressure on the general fund and health and human services; and wages, benefits and health-insurance assumptions push expenses upward. Schroeder highlighted proposed targeted changes including modest increases to a tech fund and small staff adjustments (for example, adding hours to the assistant veterans service officer and continuing a restorative-practices coordinator position when grant funding ends).
The board heard that fund-balance policy and department-level reviews will be central to the balancing process and that the county has a statutory preliminary levy deadline at the end of September. Schroeder recommended department-level analysis of both revenues and expenses and pursuing non-levy revenue where possible; she also noted the county's debt obligations and the need to be cautious about continuing to draw on one-time funds.
Board members asked clarifying questions about the scale of specific revenue and expense items; Schroeder and other staff said more detailed department presentations would follow in scheduled budget meetings.
