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Southwest Health and Human Services reports budget pressure as federal participation declines
Summary
SWHHS leaders told Lincoln County commissioners that a roughly 25% reduction in federal participation will reduce revenue by about $125,000 per quarter and that staff shortages, program changes, and an impending state takeover of non-emergency medical transportation may affect 2026 services.
Stacey Timm, director of Southwest Health and Human Services (SWHHS), and SWHHS leadership presented the agency's 2025 year-end budget and 2026 priorities to the Lincoln County Board. Lisa DeBoer said the 2025 audit "went well" and is posted on SWHHS' website; she reviewed budget items, pay and levy increases, and the agency's staffing constraints.
Nancy Walker reported programmatic impacts, saying SWHHS expects in the fourth quarter a reduced federal participation of "about 25%. This is about $125,000.00 per quarter." Walker also noted SWHHS serves about 2,500 child-support cases across six counties and currently has three position openings, which is lower than past averages. Timm outlined major system changes that could affect caseloads, including the MN African American Family Preservation Child Welfare Disproportionate Act and a change lowering the delinquency age to 13, shifting some cases to social services. She said the state plans to take over non-emergency medical transportation starting July 1, but that date "may get pushed back" while hotels, meals and parking are considered.
