REGIONAL — St. Louis County commissioners on Tuesday approved a $564.4 million budget for 2026, signing off on a spending plan that leans heavily on a 12.4 percent increase in the county’s property tax levy to maintain services amid rising costs and shifting state and federal funding.
The budget passed on a 6-1 vote, with Commissioner Ashley Grimm casting the lone dissent. The approved budget is slightly lower than the original $564.6 million proposal, a difference of about $226,000.
County leaders described the budget as focused on stability rather than expansion, aimed at sustaining core services that include public safety, roads and bridges, public health and human services, and general government. St. Louis County is responsible for delivering many state and federally mandated services to more than 200,000 residents spread across roughly 7,000 square miles.
The budget reflects continued cost pressures from inflation, employee wages, and rising healthcare expenses, along with what officials described as cost shifts from state and federal policy decisions. Commissioners said a central priority is preserving the long-term sustainability of the county’s self-insured health fund.
More than half of county spending is concentrated in three areas: public works at about 27 percent of the budget, public health and human services at roughly 23 percent, and public safety at about 16 percent. County officials said those priorities align with the services residents rely on most and the obligations the county is required to meet.
On the revenue side, about one-third of the budget is funded by the property tax levy, with the remainder coming primarily from state revenue and other non-levy sources.
County officials emphasized that the levy supports basic service delivery and compliance with legal requirements, rather than new programs.
The county will collect $202.67 million from property taxes as a result of the 12.4 percent increase. While acknowledging the significant boost in the levy, board members said it reflects the financial realities facing the county and signals the need for longer-term changes to ease future levy pressure.
For homeowners, the impact varies by location and property value. According to county estimates, the county portion of taxes on a $150,000 home in Ely would increase by $26.79 in 2026, assuming the property’s value remains unchanged. That figure reflects only the county share of the tax bill and does not include city, school district, or other local taxes.
Commissioner Patrick Boyle of Duluth said the vote was difficult but necessary to keep the county on stable footing.
“This is a tough vote but it’s the right vote,” Boyle said. “It’s going to move us forward as a county and hopefully make it easier next year when we know we’re going to be up against financial strains from our federal and state governments. It’s protecting our employees and making sure they can do the best job they can safely and protecting our most vulnerable adults and children.”
Several commissioners said the levy increase is not sustainable over the long term and committed to using the coming year to examine the county’s role in addressing broader challenges such as childcare and housing. Those discussions, they said, will be critical to easing future pressure on property taxpayers.
Commissioner Paul McDonald of Ely said public reaction to the levy underscores the need for continued engagement and collaboration beyond county government.
“Everywhere you go, people have an opinion on the levy, which is fine,” McDonald said. “That’s why we are in public service, to listen to people and come up with a decision that puts us in the best spot to move St. Louis County forward. We have to find a path, working with both our state partners and our federal partners, to move to a place that’s going to be better for each and every one of us.”
The 2026 budget takes effect Jan. 1. Additional budget information, including detailed breakdowns of spending and revenue, is available on the county’s website.