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Hennepin County warns of deep 2026 budget pressures as staff levels fall and federal cuts loom
Summary
County CFO Joe Matthews told the Administration and Budget Committee that Hennepin County has reduced budgeted positions and faces multiple federal funding cuts, including SNAP administrative losses and protective orders on grant funds; commissioners pressed for plans to protect services and staff.
Joe Matthews, Hennepin County chief financial officer, told the Administration and Budget Committee on July 28 that the county has already cut staff and is facing several federal funding headwinds that will affect 2026 and beyond. "We have 232 fewer FTEs in our 2026 budget compared to the prior year," Matthews said, and noted 311.5 fewer hired FTEs compared with the same point last year and about 572.1 fewer actual paid-hours FTEs once leaves are counted.
Matthews described month-to-month spending patterns and non-property-tax drivers, and flagged federal impacts already underway: an estimated $8,000,000 annual loss in SNAP administrative revenue and roughly $107,700,000 of federal funding currently under protective orders that affect grant spending. He said the county is monitoring those impacts while holding expenses and using attrition to manage payroll costs.
Commissioners acknowledged the update and raised concerns about workload shifts and property-tax pressures. "Attrition ... does move work onto other people," said Commissioner Lundy, thanking staff for the update. Commissioner Edelson warned of resident pressure from rising property taxes and higher employee healthcare costs. Commissioner Conley placed the federal cuts in a broader political frame, saying the changes leave counties "in a very impossible situation."
The county plans further briefings: a property-tax briefing Aug. 20, another budget update Aug. 25 and the administrator's proposed 2027 budget on Sept. 22, with maximum-levy consideration on Sept. 29. The committee did not take policy action at the meeting beyond continued monitoring and upcoming briefings.
