Hennepin County grapples with $3.09 billion budget amid federal funding cuts
Hennepin County commissioners discussed the 2026 proposed budget on September 29, expressing deep concerns about federal and state funding cuts that threaten critical services in education, food security, and workforce development. No formal votes were taken during the presentation and discussion session.
The $3.09 billion budget proposal includes a 7.79% property tax levy increase and focuses on the county's Disparity Elimination line of business—programs aimed at reducing inequities in education, climate resilience, and community engagement. However, commissioners voiced significant disappointment about cuts from higher levels of government that are forcing difficult choices.
The most pressing concern centers on workforce development. The federal SNAP Employment and Training program is being cut by 69%, leaving the county scrambling to help low-income residents meet new federal work requirements without adequate support. "We're cutting how we help people get jobs," Commissioner Ottson said. "We're saying we want you to do this work requirement for the federal government, but we're taking away all your supports to meet that demand."
Commissioners also pushed back against proposed reductions to climate and resiliency programs, food security initiatives, and education support services. Commissioner Lundy emphasized that education is fundamental to eliminating disparities, arguing that children reading and doing math at lower rates will perpetuate inequality. Commissioner Connley warned that cutting programs supporting food access and climate resilience would harm community health.
Staff explained that the county is pursuing strategies like streamlining services, leveraging partnerships, and making accounting adjustments—such as reclassifying the Minnesota Property Assessed Clean Energy (MINPACE) program—to manage financial pressures. An $8 million accounting change for MINPACE was clarified as a technical correction with no impact on actual services.
Commissioners requested additional data and deeper analysis of specific program impacts before final budget decisions. They also called for consolidating fragmented community engagement efforts across county departments and advocated for regional collaboration with other local governments to collectively address the impact of federal funding cuts. The budget process continues with additional briefings planned on education and youth mental health services.
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Votes (1)
2026 Proposed Budget Presentation: Disparity Elimination Line of Business
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.
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.
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.
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.
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.
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.
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.
Ordinances & Resolutions (12)
The main document under discussion, totaling $3.09 billion.
A program for financing energy/water saving projects via special property assessments, subject to an $8 million accounting change.
Federal grants that were canceled, impacting Broadband and Digital Inclusion initiatives.
A countywide education governance structure designed to align resources and support multi-generational services.
Conducted by Outreach and Community Supports with American Indian residents to gather input on county services.
An initiative funded by an MPCA award to map and reduce urban heat island effects, focusing on vulnerable communities.
A federal program experiencing a 69% funding reduction for 2026 despite expanded eligibility.
A program with $500,000 in proposed 2026 funding for investments along the Blue Line Extension Corridor.
Federal funds impacting workforce development budget reductions.
State workforce program facing budget cuts.
State workforce program facing significant budget cuts (55% reduction).
State workforce program also impacted by budget cuts.
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Other Topics from This Document
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
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