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Community Services warns rising costs and MNChoices changes are stretching county staff and budgets

Rice County Board of Commissioners · August 25, 2026

Summary

Community Services leaders reported growing demand, rising placement and per-diem costs, staff shortages, and state policy changes (MNChoices redesign, CFSS, individualized home supports) that increase county workload and could affect the county's 2027 budget and levy planning.

Rice County's Community Services director and division leads gave a multi-part report on workload and budget pressures heading into 2027. Director Rick said the county employs 186 people across four departments and highlighted areas of concern including mileage costs ($282,000 paid last year), potential use of AI for call handling to cope with about 35,000 incoming calls a year, and rising per-diems for juvenile out-of-home placements.

Division leads described how state changes to MNChoices and the introduction of CFSS have altered service calculations and increased appeals and casework. One presenter warned that service limits and redesigns are producing more appeals and extra administrative work and that counties are bearing cost shifts. Community corrections staff said they are planning conservatively for the 2027 biennium and noted grants and no-cost extensions have helped offset some costs, but emphasized staff retention and the operational strain from several employees on family leave.

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