Ramsey County prepares for "Big Shift" in federal funding
An update from Ramsey County officials on the impacts of federal funding changes
Ramsey County is preparing to make difficult budget decisions as the burden of funding community services is shifted from federal partners to counties and local communities.
In a presentation to Roseville City Council on July 21, County Commissioner Mary Jo McGuire and County Manager Ling Becker outlined how changes in federal funding will impact Ramsey County services for cities like Roseville.
"We have significant federal cost shifts happening. What is anticipated to be about $1 trillion in cost shifts over the next 10 years. We’re talking about a significant reorientation of who’s responsible for paying for things in our current ecosystem," Becker said to the city council.
In Minnesota, approximately 35% of the current state budget is comprised of federal grants. This totals around $42 billion for the two-year budget. Ramsey County receives $120 million a year in federal grants.
In the past, the federal government was there to "shore up the needs of the local community," Becker said. For instance, the CARES Act funding during the pandemic provided $1.5 billion for economic development assistance programs. Becker also referenced the American Rescue Plan, which provided $3 billion to help local communities respond to and recover from the pandemic.
"We’re at the complete opposite now, where the federal government is the funding pressure that is causing a lot of distress into our economic systems of how we serve our communities," Becker said.
The National Association of Counties (NACo) calls this "The Big Shift." According to NACo, "The changes not only place significant fiscal burdens on counties but also reflect reduced authority of local governments as the delivery of federal programs is mandated with stricter requirements but without sufficient financial or technical support."
Learn more about how NACo is tracking shifting federal spending:
Teryn Zmuda
As a result of canceled or paused federal funding, Ramsey County will need to focus only on the services they are required to provide, such as property tax assessment, tax administration, elections, record keeping, transportation, planning and zoning, solid waste management, environment, parks and water management, law enforcement, courts, and health and human services.
Ramsey County will need to cut or scale back services or raise property taxes and fees to deliver the same services. Infrastructure projects may be delayed or canceled and County funding to nonprofits will also be reduced.
"Our budget is going to be really stretched and we’re going to be looking at what services we offer that no other government level or community vendor provides," McGuire told the city council. "We’re going to be saying no to a lot of things that we’ve tried to do in the past because we thought they were important."
Medicaid and SNAP changes
Becker also explained how changes to funding and eligibility requirements for Medicaid and the Supplemental Nutrition Assistance Program (SNAP) will impact the County and local communities.
In 2023, 37% of Ramsey County residents received Medicaid (also known as Medical Assistance or MA) for at least one month of the year. There are currently 85,000 MA cases in Ramsey County and 35,000 SNAP cases. A significant number of these cases could lose eligibility due to work requirements, according to Becker's presentation.
The "One Big Beautiful Bill Act" also shifts administration costs to the states. In states like Minnesota where counties administer these programs, the cost of that administration has been passed from the federal level to the County.
Minnesota is one of 10 states where county governments review Medicaid applications, rather than state governments. And the new Medicaid work requirements mean counties will need to increase their administrative load.
Matt Freeman, executive director at the Minnesota Association of County Social Service Administrators recently told MinnPost that, “These work requirements are not embedded into county technology systems."
This will require counties like Ramsey County to spend more on IT infrastructure and admin.
According to Ramsey County data provided to the Roseville Reader in January, 5,892 Roseville residents received Medical Assistance and 2,298 Roseville residents receive SNAP benefits. In addition, 232 Roseville residents were in the Minnesota Family Investment Program (MFIP), an employment assistance program. People in MFIP also receive SNAP benefits that are accounted for separately.
Long Term Consequences
Becker anticipates long term economic and social consequences due to underfunded programs. She anticipates reductions in mental health services, disability services, and housing services, to name a few. The County is also seeing impacts in their administration of veterans benefits, particularly around getting the information they need, changes in the processing time, and the elimination of critical data which informs their work.
She is also seeing an increase in people asking if it's safe to come to the County for resources, questioning if they can trust police officers or emergency medical services.
On a personal note, Becker said the cuts to federal programs and staff and negative rhetoric about public service has been "demoralizing."
"Public service is being dismissed as not honorable, when a lot of people have given a lot of years of their life trying to make communities better by working in the public sector. There’s overall trauma and harm," Becker said.
The County is also waiting to find out if there will be a special session for the Minnesota Legislature, which would further clarify state level funding available to counties.
McGuire told the city council that the budget pressures and shifting of funding responsibility to the local level will leave the County in a difficult position. Without federal grants, the County's primary revenue stream is property taxes and sales taxes.
"It's the property taxes that are going to bear the brunt of most of this and we’re frustrated with it as well," McGuire said. "We’re going to share your pain as we all try to deal with these budget shifts."
Budget Process
The 2026-2027 Biennial Ramsey County budget will be presented to the County Board on September 2. A public hearing will be held on September 22 about the proposed budget. The final budget will be approved and tax levies set by the County Board on December 16.
Learn more about the Ramsey County budget process here.
To watch the Ramsey County presentation and learn more about the services, programs, and responsibilities of the County, check out the July 21 meeting recording and the presentation slides.
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