2018.01.29 CC Packet - Goal Setting

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FUNDING FOR MANDATED SERVICES Position: Washington County seeks to protect our local taxpayers from any further shifts of state costs to the county property tax (which is a regressive and unpopular form of taxation) and the potential erosion in our ability to deliver high quality, essential services in an efficient manner. We encourage the legislature and the Governor to provide flexibility and full funding for any mandates imposed on local governments. Issue: County governments are tasked by both the state and federal governments to carry out New County Program Aid (CPA) mandated programs on their behalf. Nearly Used Towards Mandates 80% of all operating costs in the annual county budget are to pay for mandated services. New CPA Available in 2018: $990,900 Counties have identified potential reforms, "Significant 2018 Mandated Cost Increases: repeals, or changes that could reduce costs by • Out -of -home placements of children $284,900 MNChoices cost shift estimate $260,500 over $8 million a year just for Washington Child Protection (includes court-appointed attorney increases) $231,100 Regional Treatment Centers Cost Share $205,500 County (see Appendix A for a list of potential State Public Radio System Upgrade $ 87,500 items for reform). Federal and state financial • Chemical Dependency Treatment 85100 TOTAL $1,154,600 assistance is provided but does not cover the Estimated shortage: <$163,7W> full cost of providing the mandated services •Additionally, the 2017 Legislative Agenda describes more than $L.4 million in and in many situations the amount of aid does unfunded mandates that have been shifted to Washington County in recent years. sbinatm v not even cover the increases in costs from one year to the next to provide those services. The shifting of costs to the county property tax places an unstainable burden on local property taxpayers and inhibits the county's ability to provide high quality, essential services. In 2017, the county has budgeted to spend more than $116 million on services that are required by state or federal law, rule or regulation. The cost increase to provide just these same services in 2018 is expected to rise by over 6%, or an additional $4.6 million. This increase in costs just for mandated services required a 4.5% increase in the county property tax levy. County Program Aid (CPA) is provided by the state to help fund state mandated services. While the county will receive more than $990,000 in additional county program aid in 2018, that amount is less than just the increased costs for six mandated programs, including child protection, out of home placement costs, and MnChoices assessments. The total county program aid estimated for 2018 for Washington County is $10,104,300. Washington County strives to provide services in a highly effective and efficient manner. The county has the second lowest operating costs per capita of the seven metropolitan counties and the third lowest levy per capita. The county has the lowest human services administrative costs per capita of all Minnesota counties and one of the lowest county tax rates. The county holds the highest credit rating (AAA) from both major rating agencies. The overall growth of the county levy over the past five years has been considerably lower than the county's growth in population and the growth in inflation. However, inadequate state resources threaten our ability to continue providing the core functions of county government at a reasonable cost to county taxpayers. 5