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   Cass County Health, Human and Veterans Services (HHVS) is preparing for significant budget pressures in 2026 as new state laws take effect, requiring expanded services and additional staffing to meet compliance mandates.

   According to Cass County Administrator Josh Stevenson, the department has budgeted an increase of $274,383 for 2026 to address new requirements. The proposal includes 2.5 new full-time equivalent positions to meet updated Medical Assistance eligibility standards and 2 additional positions to comply with the Minnesota African American Family Preservation and Child Welfare Disproportionality Act (MAAFPCWA). These positions are budgeted to start on July 1, 2026, with a goal of being in compliance by January 1, 2027. Additionally, an estimated $31,250 loss in SNAP revenue is expected during the fourth quarter of 2026.

Stevenson noted that HHVS represents a significant share of the county budget with HHVS accounting for 23.78% of the proposed levy in 2026.

   While Cass County’s overall tax rate remains low, the impact of these changes on individual property taxes remains uncertain.

“Valuations tend to have a larger effect on property tax bills than levy increases because of the county’s low tax rate,” Stevenson said.

When asked what is driving the anticipated levy increase, Stevenson explained that the pressure is widespread  with “Inflation, additional staff, and labor costs being the primary drivers,” Stevenson stated. “Each department varies by individual fund.”

   Regarding state and federal funding shifts, Stevenson added:

“Each department varies by individual fund, and we see variations in state and federal grants every year. There isn’t one single cut we can point to.”

   Programs most directly affected by the combination of new mandates and reduced funding include the Supplemental Nutritional Assistance Program (SNAP) and Medical Assistance (MA) services. Both programs are essential supports for vulnerable populations throughout the county.

   Officials warn that low-income families, seniors, and people with disabilities may face new challenges accessing benefits.

“There will be significant new barriers for enrollment and renewal of coverage for some Medicaid recipients,” Stevenson said, citing mandatory work requirements, more frequent eligibility checks, and increased administrative oversight.

   Other changes include reducing the lookback period for medical expense coverage from 90 days to 30 days for single adults and shifting more cost-sharing responsibilities to the county. These measures could result in delayed or lost benefits for families, veterans, and individuals relying on waivered services.

   Commissioner Neal Gaalswyk said the county is also facing major staffing challenges tied to MAAFPCWA. “The Minnesota African American Family Preservation and Child Welfare Disproportionality Act requires a 38% increase in staffing for our child protection unit,” Gaalswyk said. “That is a substantial change for a rural county to absorb.”

   He added that other state program changes have also increased workloads. “We used to review state assistance cases every twelve months. Now many must be reviewed every six months,” Gaalswyk said. “That essentially doubles the administrative burden.”

   To prepare, HHVS has requested funding in its 2026 agency budget to hire and train additional staff in both the eligibility and child protection units. The staffing increases are intended to meet new workload demands and to comply with MAAFPCWA requirements by January 2027. However, hiring qualified staff remains challenging. “We’re competing with surrounding counties and even employers outside the region,” Gaalswyk noted. “With more people working remotely, wages and benefits have become harder for rural counties to match.”

   The department’s greatest concern centers on sustaining Medical Assistance, Minnesota’s Medicaid program, at current levels. “Changes to Medicaid will have a significant impact on Cass County clients,” Stevenson reported. “Our clients on waivered services funded through Medical Assistance have helped reduce the fiscal impact on our property tax levy.”

   In 2024, roughly $13 million in waivered services were funded by federal and state sources rather than county property taxes. Currently, about 7,500 residents per month receive healthcare coverage through Medical Assistance in Cass County.

   Officials caution that any future federal or state changes could ripple throughout the community. “Fiscal changes here, without corresponding adjustments to mandates, will require additional local taxpayer funding,” Stevenson said.

Gaalswyk added that Cass County continues to be strategic in managing taxpayer dollars.

“Cass County has long been a fiscally conservative board,” he said. “We are always looking for outside money before turning to local taxpayers.”

   Cass County, like many counties across Minnesota, continues to manage a growing list of unfunded or underfunded mandates. County Commissioners have repeatedly urged lawmakers to provide relief during legislative sessions, emphasizing that counties are legally required to deliver these services—funded or not. “Counties want to partner with the state,” Gaalswyk said. “But the responsibility has to be shared. Right now, more of the financial load is being shifted to counties, and that’s not sustainable.”

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