A lack of state funding is being cited as a reason for a proposed tax levy in Koochiching County.
The County is considering a 6% increase.
County Administrator Adam Coe says much of the increase is attributed to supporting the public health and human service department and its ability to deliver State-mandated programs.
Administrator Adam Coe says 98% of services are required to be provided locally.
“The state share of helping pay for those is not keeping up with the cost of providing those mandated services, so additional local funds were needed to help maintain that,” says Coe.
He adds that the department has been running deficits of over $300,000 for the past two years, exhausting its reserve account to cover the shortfall.
An additional $34,366 from the levy increase is proposed to go to a general revenue fund that is used to offset wage and health insurance rate increases.
The total spending is targeted at $39,333,971.
Coe says it is a 1.91% reduction over last year, when jail construction costs are not factored.
“We reduced and eliminated many capital projects to offset the increases in other areas to result in that 1.91% decrease,” says Coe.
It includes a decision not to fill two positions within the public health and human services.
Total revenues are budgeted to be at $39,556,559, a slight decrease from 2025.
“We had some specific projects, like the remonumentation grant and other grants that we’re not receiving.”
County Commissioners are expected to formally approve the budget at their meeting next Tuesday.