Sherburne County Commissioner Andrew Hulse Criticizes Unfunded HHS Mandates

Sherburne County Commissioner Andrew Hulse cited unfunded state and federal mandates as a primary driver behind proposed property tax increases that could represent the largest in a decade for residents, according to a report by KSTP. The commissioner’s remarks, made during a public forum on July 20, highlighted growing financial pressure on the county’s Health and Human Services Department, which oversees programs including mental health services, food assistance, and home care for seniors.

Hulse stated that mandatory state and federal requirements—such as expanded eligibility for healthcare programs and new reporting standards—have created a $12.8 million funding gap for the department in fiscal year 2027. “These mandates are not optional,” Hulse said. “They come with strict deadlines and no additional state or federal funding. We’re being asked to do more with less, and it’s forcing us to consider significant tax adjustments.”

The proposed tax hike would increase the county’s property tax rate by 12%, according to preliminary calculations by the Sherburne County Budget Office. This would raise the average annual tax burden for a homeowner with a $300,000 property from $1,450 to $1,624, according to data shared by county officials. The increase is part of a broader plan to close a $23 million budget shortfall across all county departments, with the Health and Human Services Department facing the steepest cuts without additional revenue.

Unfunded mandates have been a recurring issue for local governments in Minnesota. A 2023 report by the Minnesota Budget Project found that state and federal mandates cost counties $450 million annually in unmet obligations. Sherburne County, which has a population of approximately 150,000, is among the most affected, with officials estimating that 35% of its current budget is tied to mandates beyond its control.

Harrison Klopp, a spokesperson for the Sherburne County Board of Commissioners, emphasized that the proposed tax increase is a “last resort” measure. “We’ve exhausted all other options, including reallocating funds from non-essential programs and seeking grants,” Klopp said. “But the reality is that these mandates are driving up costs faster than we can adapt.”

The county’s proposed tax hike has drawn mixed reactions from residents. At the July 20 forum, several attendees expressed frustration over the financial strain, while others acknowledged the need to maintain critical services. “I understand the pressure, but I can’t afford another increase,” said Elk River resident Linda Martinez, who has a 20-year-old son enrolled in the county’s developmental disabilities program. “These services are vital, but we’re being asked to pay more without any guarantee of better outcomes.”

State officials have not yet responded to requests for comment on the county’s claims. However, a spokesperson for the Minnesota Department of Human Services noted that the state provides “targeted funding” for certain mandates, such as the expansion of the Minnesota Medicaid program. “We work closely with counties to ensure they have the resources needed to comply with state and federal requirements,” the spokesperson said.

County officials have scheduled a public hearing on the tax proposal for August 10, with a final vote expected by September. If approved, the increase would take effect in January 2027. Hulse reiterated that the county is exploring long-term solutions, including advocacy for state-level changes to mandate funding structures. “This isn’t just about taxes—it’s about sustainability,” he said. “We need a system that allows local governments to plan and invest without being blindsided by external requirements.”

The situation reflects broader tensions between local governments and state/federal policymakers. In 2022, the Minnesota Local Government Association reported that 82% of counties faced similar unfunded mandate challenges, with 45% citing financial instability as a direct consequence. Sherburne County’s case may set a precedent for how other jurisdictions navigate similar pressures in the coming years.

For now, residents await further details on the proposed tax changes and potential alternatives. County officials have encouraged public input through an online feedback portal, which will remain open until August 5. “We’re committed to transparency and collaboration,” Klopp said. “This is a difficult decision, but it’s one we believe is necessary to protect our community’s well-being.”