09/28/2026
The county's 2027 budget is going down, but the property taxes are going up. Why? My office has gotten this question from constituents a few times now, so let’s dive in a little deeper.
Regarding the reduction in the county's overall budget, it's important to understand that the county's revenue is made up of property taxes, state and federal dollars, fees for services, and other miscellaneous sources. Property taxes make up about 41% of the overall revenue.
Some departments are funded almost entirely by revenue sources that are not property taxes. Next year, we anticipate a large reduction in some of those expenditures, accounting for most of the $150 million reduction in the county's overall 2027 budget.
So why are the property taxes going up? Let me give you two examples. The first is in public safety, where most of the required services we provide are funded by property taxes. The second is in human services, which is over a quarter of the county’s overall budget. 38% of that human services budget is from property taxes. Many of the services provided in both public safety and human services are mandated, meaning the county is required by law to provide them.
The proposed 8.15% levy increase comes to about $92 million. Here’s where that money goes:
• About $27.7 million replaces state and federal money the county lost for work it is still required to do in Human Services: administering SNAP, Medicaid, MnCHOICES, and long-term supports and services.
• About $35.8 million goes to public safety, including staffing the jail properly.
• About $10 million is debt payments on capital projects approved years ago.
• The rest is cost growth the county cannot avoid: cost-of-living pay, health insurance, and inflation on fuel and construction materials.
We tried to mitigate some of the impacts by cutting total spending by more than 5%, eliminated more than 150 positions, and slowed capital spending. While those savings have an impact, they are not enough to offset the costs above.
Here are two more things you should know. The federal funding loss is expected to grow to about $51 million a year in 2028. And the goal is to bring the levy increase down in future years, not sustain it at this level.
The board sets the maximum levy tomorrow, September 29th, and the first public budget hearing is this Thursday, October 1st. Details at www.hennepincounty.gov/budgets.