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Publisher’s note: this is the final installment of the Annual Reports  delivered at the June 12 meeting.

County Facilities

   Selected Market Trends:

   • Increased need for maintenance on all county buildings as more systems come to the end of their life cycle.

   • Trying to better manage cleaning to enhance our efforts where it’s needed (i.e., responding to more visitors by more frequent cleaning/resupply efforts or not cleaning unused or lightly used spaces as often.)

   • Continued reduction in oil prices and natural gas prices has the potential to help our heating budget in 2025-2026.

   Legislative Updates:

   • Cuts and cost shifting in the state budget hurt infrastructure as needs do not slow; wear, tear, and weathering never stop.

   • Due to relatively small quantities used in day-to-day operations, little tariff effect is noted, however, there is potential to see additional costs in any project utilizing steel, iron, copper, aluminum, and cement due to tariffs or environmental initiatives.

   • No news is good news; the Minnesota legislature made NO major changes in energy policy this session, hopefully, electric rates will stay flat.

   2026 Issues:

   • Climbing insurance premiums for general liability and workman’s compensation, along with County policy matching MCIT recommended limits, hinder the ability to hire smaller contractors and handymen for minor work on facilities.

   • HVAC supply chain issues, ANOTHER switch of refrigerants has caused a backlog in some parts. Repair of existing systems is getting more expensive.

   • State cuts and mandates for service make predicting space needs next to impossible.

Health, Human, 

Veterans Services

   Selected Market Trends:

   • Significant concerns for property tax increases and service pressures due to: anticipated Federal changes in Supplemental Nutritional Assistance Program (SNAP) and Medicaid; anticipated State cost shifts to Health and Human Services and anticipated increased cost of administrative costs to monitor new changes.

   Legislative Updates:

   • Does not meet medical criteria – Mental Health clients placed in Community Behavioral Health Hospitals (CBHH) or Anoka Regional Treatment Center (ARMTC), looking at a $13.5 million per year cost shift to counties starting July 1, 2025. We are budgeting

$150,000 for Cass County.

   • Competency Restoration – a cost shift of $8.3 million to counties annually. The certified program consists of twelve sessions of 1-3 hours a session at $150/hr. per inmate/client. Twenty-five clients/year would cost approximately $135,000. HHVS is looking into creating their own program in order to save money.

   • State replacing County reimbursement for staff completing MN Choices assessments from time study reimbursement to counties with a flat reimbursement. This rate is yet to be set.

   2026 Issues:

   • Achieving staffing levels and the training needs to meet the MAAFPCWDA requirements by January 1, 2027. With the PFML going into effect Jan. 1, 2026, the department is looking as having to add between four to six new social workers.

   • Navigating through future unknown federal and state changes that will have a local impact on our citizens who are involved in all aspects of our services, such as public health, healthcare, and mental health.

   • Resources to handle the influx of client calls concerned about the instability of their ongoing eligibility for public assistance programs.

Highway

   Selected Market Trends:

   • 2025 County State Highway Funding Program saw an additional $490,000 for construction and additional $327,000 for maintenance.

   • Local Option Sales Tax increased slightly in 2024 to $ 3.1 million. The start of 2025 shows a small decrease to date.

   Legislative Updates:

   • Current budget proposals have limited funding for bridge replacements of $20 million, and road improvement grants of $42 million.

   • Special Projects and Earmark funding increases at the State and Federal Level. The current House has $105 million proposed as “Priority Projects”.

• Infrastructure Investment and Jobs Act funding ends in 2026, with an uncertain future on the federal transportation bill.

   2026 Issues:

   • MnDOT is revamping their Corridor Planning Guidebook and their Cost Participation Policy Manual  with completion dates in 2026.

Human Resources

   Selected Market Trends:

   • Culture and Strategy must move into alignment

   • Retention strategy moves from response to prevention. With long term staff nearing retirement, the County needs to determine how to entice and retain new staff.

   • Personalized employee development accelerates growth.

   Legislative Updates:

   • Paid Family and Medical Leave (PFML) - new tax deduction that will be a 50/50 split with the employees. The County is having a meeting on July 10 to look at the options between utilizing the State PFML plan or a private company plan. When asked what the additional cost to employees may be, Stevenson stated the estimated total annual cost is $200,000 which would then split 50/50 with roughly 300 employees.

   2026 Issues:

   • Labor Negotiations

   • Health Insurance and Fund Balance

   • Leadership Development

Land

   Selected Market Trends:

   • Timber markets remain stable amongst all sales sold, there is two remaining.

   • Transitioning from ARC Map to Arc using ProWest

   • Increase for GIA ATV trails while funding is down.

   Legislative Updates:

   • Provisions related to cutting Payments in Lieu of Taxes removed.

   • Cuts to the UMN for Forest Health, Outreach and Seed collection.

   • Efforts continue to secure funding for Blighted Properties.

   • Biomass considerations as “carbon free”- Aviation fuels.

   2026 Issues:

   • Emerald Ash Borer Quarantine now includes Aitkin County, which makes it a lot easier for transporting  timber as there is no longer a need for special permits.

   • Demand for Carbon Project continues.

   • Legislation to increase ATV weight to 3000 lbs+ 

Probation

   Selected Market Trends:

   • Continued slight downward trend of adults and juveniles entering the justice system.

   • Decrease number of juveniles being placed out of their homes,which is resulting in a  cost savings.

   • Several counties across Minnesota are changing the probation model to the Community Corrections Act Counties.

   Legislative Updates:

   • Continued planning for the delinquency age change on August 1, 2026. (Age change from 10-17 to 13-17 years old)

   • Probation fees sunsetting extended to August 1, 2029. This will now give counties two additional years to acquire additional state funding to make up the fee deficits to the county budgets.

   2026 Issues:

   • Consider changing Cass County’s probation delivery system.

   • New model provides local control over all fiscal, operational, and personnel functions.

   • Continue to promote coordinated county and tribal-wide planning, communication, and integrated services to include newly established tribal probation.

   • Larger legislative funding influence on the State of Minnesota Legislators.

Sheriff

   Selected Market Trends:

   • Current Jail and In-Custody Numbers are maintaining lower-than-average trends.

Opportunity for new jail operations, contract options, and deferred maintenance of the Law Enforcement Center.

   • Continued increase of costs in goods and supplies, including vehicles, equipment, and consumable supplies.

   • Currently, only two open Deputy positions; hope to fill them by EOY.

   Legislative Updates:

   • New PFML Legislation for 2026 – Impacts on operations are unknown but could be significant for 24/7 operations.

   • Continues Training Requirements (Mental Health, SRO, etc.)

   • Proposed changes to mandates on Body Camera data, including collection, storage, and drone use.

   • Proposed changes to 2911 Jail Statutes from MN DOC.

   2026 Issues:

   • Prioritizing LEC/Jail deferred maintenance needs from the 2025 Capital Needs

Assessment.

   • Address heated storage for vehicles, equipment, and records. No Sheriff space created with the new Hackensack Highway Garage.

   • Attracting/Retaining quality applicants for Deputy and Dispatch positions.  

2026 Budget 

Schedules

   Cass County’s five citizen appointees and two county commissioners (budget committee) will receive departmental requests and prepare a proposed 2026 county budget and levy this summer.

   The county board then sets a preliminary levy in September before the budget committee makes additional budget changes in October. The board will hold a public hearing before adopting a final budget and levy in December.

   That schedule is as follows:

   • July 7 — Preparation packets released

   • July 25 — Departmental requests due

   • Aug. 15 and 29 — Budget committee reviews requests and prepares the preliminary budget and levy,

   • Sept. 2 — County Board sets preliminary levy,

   • Oct. 3 and 10 — Budget committee makes additional budget changes,

   • November — Truth in taxation notices mailed to taxpayers,

   • Dec. 2 (6 p.m.) — Public hearing on proposed budget,

   • Dec. 16 — County board sets final levy and budget.

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