Hennepin County — Transcript

Monday, September 29, 2025

Story

Hennepin County grapples with $3.09 billion budget amid federal funding cuts

Workforce Development & SNAP Funding Reductions

Climate and Resiliency Initiatives

Education Support Services & Youth Mental Health

Community Engagement (OCS) & Federated Model

MINPACE Program Accounting & Financial Models

Service Consolidation & Regional Advocacy

Votes (1)

2026 Proposed Budget Presentation: Disparity Elimination Line of Business

No formal vote or action was taken on specific budget items during this hearing; the session was for presentation and discussion of the 2026 Proposed Budget.

Dissent: Commissioners expressed significant concerns and disappointment regarding federal and state funding cuts impacting critical services, and advocated for increased county investment and strategic reallocations in areas like education, food security, and climate resiliency.

The committee heard a presentation on the 2026 proposed budget, focusing on the Disparity Elimination line of business. Key discussions revolved around the $3.09 billion total budget, a 7.79% property tax levy increase, and significant federal/state funding cuts affecting workforce development (e.g., SNAP ENT programs) and other initiatives. Commissioners voiced strong concerns about the impact of these cuts on residents, particularly in education, food security, and mental health. Staff explained strategies to streamline services, leverage partnerships, and use accounting changes (like the MINPACE program reclassification) to manage financial pressures. Several commissioners requested further data, memos, and deeper dives into specific program impacts and financial mechanisms like TIF districts and special assessments.

Notable Quotes (7)

For me education is everything if we really want to eliminate disparities if we're having kids who are reading at a lesser rate doing math at a lower rate we will never eliminate disparities.

Commissioner Lundy [00:18:14]
2026 Proposed Budget Presentation: Disparity Elimination Line of Business

This line of business in particular, uh, is so much rooted in our philosophy of prevention and like an ounce of prevention pays dividends in so many of the other lines of business.

Commissioner Anderson [00:23:25]
2026 Proposed Budget Presentation: Disparity Elimination Line of Business

I don't say that lightly. We know that this is a year where many governments, universities, school organizations, businesses are not willing to say the word equity, are not willing to follow the data and the numbers.

Commissioner Fernando [00:26:09]
2026 Proposed Budget Presentation: Disparity Elimination Line of Business

Fiduciary fund activities are not budgeted, resulting in a decrease of $8 million in revenue and expenditures from the 2025 adjusted climate and resiliency budget. This accounting change has no impact on minpay services which continue to be supported by climate and resiliency. It also does not reflect reduced investment in our climate and resiliency initiatives. It is strictly an accounting correction.

Alexander Iverson, Budget and Finance Manager [00:06:04]
2026 Proposed Budget Presentation: Disparity Elimination Line of Business

Anything that takes our community from healthy to unhealthy is not something that should be on the chopping block, right? It should be like a push to keep people wellfed. To me, climate and resiliency is how we do that among a host of other things, but it's a very important key part.

Commissioner Connley [01:15:47]
2026 Proposed Budget Presentation: Disparity Elimination Line of Business

We're cutting how we help people get jobs. How are we meeting that so that we're helping residents um meet that moment? Because what I see happening is we're saying we're going to we want you to do this work requirement for the federal government, but we're taking away all your supports to meet that demand.

Commissioner Ottson [01:23:09]
2026 Proposed Budget Presentation: Disparity Elimination Line of Business

We should really have a conversation all three entities, which I know what that'll look like, but that's too bad. If we're going to talk about community engagement, we need to stop with the silos.

Commissioner Lundy [01:50:39]
2026 Proposed Budget Presentation: Disparity Elimination Line of Business

Ordinances & Resolutions (12)

2026 Proposed BudgetOther

The main document under discussion, totaling $3.09 billion.

Minnesota Property Assessed Clean Energy (MINPACE) programOther

A program for financing energy/water saving projects via special property assessments, subject to an $8 million accounting change.

Digital Equity Act programsOther

Federal grants that were canceled, impacting Broadband and Digital Inclusion initiatives.

Grow, Learn, Thrive frameworkPlan

A countywide education governance structure designed to align resources and support multi-generational services.

Community Needs AssessmentOther

Conducted by Outreach and Community Supports with American Indian residents to gather input on county services.

Heat Resiliency PlanPlan

An initiative funded by an MPCA award to map and reduce urban heat island effects, focusing on vulnerable communities.

Supplemental Nutrition Assistance Program Employment and Training (SNAP ENT)Other

A federal program experiencing a 69% funding reduction for 2026 despite expanded eligibility.

Anti-displacement prosperity programOther

A program with $500,000 in proposed 2026 funding for investments along the Blue Line Extension Corridor.

Workforce Investment Opportunity Act (WIOA) fundsOther

Federal funds impacting workforce development budget reductions.

Minnesota youth programOther

State workforce program facing budget cuts.

State dislocated worker programOther

State workforce program facing significant budget cuts (55% reduction).

State adult programOther

State workforce program also impacted by budget cuts.

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Hennepin County - Hennepin County Recorder