Minnesota's Rice County Commissioners are sounding the alarm over proposed cost shifts in Governor Tim Walz's 2026-27 budget, a change that they argue will directly hike property taxes for local residents, as detailed in a Rice County announcement. Commissioners Gerry Hoisington and Charlie Peters express their concern that taxpayers are the ones footing the bill for the state's fiscal challenges, particularly through a predicted 5.1% ($2.3 million) increase to the county's property tax levy, not accounting for other rising expenditures such as inflation, health insurance, and other government costs.
The perspective from the county's administration suggests that these shifts, including costs for Human Services programs and the new Paid Family and Medical Leave set to kick in at the beginning of 2026, which will cost the county an estimated $156,000, represent a troubling trend of the state offloading its financial problems onto counties, and by extension, property owners; according to a similar statement, the county also risks losing aid for dealing with aquatic invasive species and proceeds from cannabis product sales.
During a legislative conference by the Association of Minnesota Counties, Rice County officials including Hoisington and Peters, along with Commissioner Jim Purfeerst and Administrator Sara Folsted, took the opportunity to discuss these fiscal pressures with state legislators. "It's not sustainable," said Peters, highlighting the governor's recommendation for counties to take on a 5% cost share for residential services for those with physical and developmental disabilities and increases in shares for sex offender treatment or substance/chemical abuse programs.
Unfunded mandates and cost shifts are not new to counties, as they've often shouldered the burden of state budget shortfalls, now anticipated to hit a $6 billion deficit by the 2028-29 biennium, a point that was made in the county's release; many services that counties provide though state-mandated, they are often left underfunded or completely unfunded by the state itself, leading to an inevitable push of these costs on property taxes, complicating the financial landscape for cities and school districts who strain under their own fiscal needs, Peters, conveying these concerns, has informed city leaders at Lonsdale and Morristown council meetings that the Board of Commissioners is likely looking at a levy increase.
Commissioner Hoisington is urging community members to engage with their legislators, asserting, "It behooves everybody to get involved and talk to their legislators," he told attendees at a council meeting, "Because the buck stops with your property taxes in Rice County," emphasizing the importance of constituent voice in the face of the looming financial shifts.
