Grand Forks County officials have advanced a proposed 2026 budget anticipating a 3% levy increase and a slight rise in millage rates, signaling a significant financial adjustment for local taxpayers. This crucial decision, made amidst efforts to comply with a new state law, involves strategic utilization of cash reserves to balance the fiscal year ahead. The county’s financial planning is under intense scrutiny as it navigates complex economic realities and legislative mandates.
The preliminary budget received approval in a tight 3-2 vote by the Grand Forks County Commission, with Commissioners Terry Bjerke and Mark Rustad casting dissenting votes. A definitive vote on this pivotal preliminary budget is scheduled for the commission’s upcoming regular meeting on August 5, where final figures and potential adjustments will be debated before public adoption. This ongoing deliberation highlights the careful consideration required for county finances.
For the 2026 fiscal year, the county projects levying $36,300,211, equating to 91.7 mills in property taxes. To ensure adherence to the recently enacted state law imposing a 3% cap on property tax increases, the county plans to allocate between $300,000 and $700,000 from its cash reserves. This measure is designed to bridge any budgetary gaps and maintain financial compliance. The value of a mill, the key multiplier for calculating property tax obligations, has also seen an increase from $394,222 to $410,142.
According to the June financial statements, Grand Forks County expects to conclude the year with approximately $14.5 million in reserve funds. The total proposed budget for 2026 stands at $55.9 million, representing a reduction of roughly $5 million compared to the previous year’s $61 million. This budgetary contraction necessitates careful resource allocation, balancing essential services with fiscal prudence in a changing economic landscape.
Despite the overall budget adjustments, no cuts are currently anticipated for contracted services. However, Commissioner Bjerke has consistently voiced opposition to any levy increase and the reliance on cash reserves to balance the budget, advocating instead for a thorough examination of other property tax levies, including those designated for the library and historical society. He views the current approach as unsustainable, arguing it depletes vital financial cushions.
Bjerke further proposed an investigation into either reducing or discontinuing the county’s juvenile detention services, suggesting that contracting these services out could result in significant cost savings. However, Youth Assessment Center Administrator Robin Spain cautioned against eliminating this service, emphasizing that such a move would diminish critical options for the region. This debate underscores the multifaceted challenges of balancing fiscal responsibility with community needs.
In another significant financial shift, the county plans to alter its health insurance funding model for the new budget. The health reimbursement account (HRA) plan will transition to monthly payments instead of an upfront lump sum, with the county contributing a standardized $3,000 for all plans, replacing the current tiered system. Commissioner Rustad noted this change could prevent potential manipulation of funds and promote long-term savings by ensuring unused HRA funds revert to the county.
The Grand Forks County Commission is set to revisit the budget discussions next week, providing another opportunity for review and potential modifications. A public hearing on the budget is scheduled for September 16, offering residents a crucial platform to voice their opinions and engage with the proposed financial plan before its final adoption. The commission also considered public notification changes for the hearing, ultimately opting for the standard one-mile radius.
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