Minnesota counties worry about cost shifts from Trump's big bill

[MUSIC PLAYING] NINA MOINI: Our top story this afternoon, Republicans in the US House of Representatives are on track to pass the big tax and spending bill by their deadline of tomorrow, July 4th. The bill extends tax breaks from President Trump's first term and eliminates taxes on tips. It also cuts federal funding for Medicaid and the Supplemental Nutrition Assistance Program or SNAP. In Minnesota and 10 other states, county governments manage these programs, and some local leaders say the bill will cost counties millions of dollars as they provide health care and food assistance to low-income residents. Joining me now with the view from Arrowhead region is St. Louis County Board of Commissioners chair Annie Harala. Thank you so much for being here, Commissioner.

ANNIE HARALA: Good morning. Thank you for the invitation.

NINA MOINI: Would you start by explaining just more for people who don't know about the county's role in administrating these SNAP and Medicaid benefits?

ANNIE HARALA: Absolutely. So Minnesota is a state that manages these local programs, and so for the Supplemental Nutrition Assistance Program and Medicaid, our counties are on the front lines working with residents to work on eligibility and to help them to access these programs.

NINA MOINI: Can you give us a sense for how many people, how much of the population is currently relying on these SNAP and Medicaid benefits in your county?

ANNIE HARALA: Yeah, absolutely. So St. Louis County, for those listening and that don't know, is the largest county by landmass east of the Mississippi River. About 50% is actually publicly owned, so we have about 20,000 residents-- excuse me, 200,000 residents. And of those 200,000 residents, 20,000-- excuse me, 20% of our population is covered by these benefits. That's very comparable to our state average.

And people that are covered are children. There are families. There are seniors. There are people with developmental disabilities. And we work closely with each of those as these are safety net programs.

NINA MOINI: So in a press release that the county sent out, St. Louis County estimated the bill would cost $10 million for SNAP, and about $6.5 million for Medicaid. Can you break down where these costs would come from, and talking about $16 million or so, could you give people just a perspective of what that means within a county budget size?

ANNIE HARALA: Absolutely. So our county budget is-- we run tight budgets at counties, and oftentimes counties are the place that people come to as the last resort to help manage pieces. But when we're looking at this specifically-- and I want to be clear, many numbers have been moving as this bill has been-- is really active between both sides of Congress. And so for SNAP, there are two impacts we've looked at that have build-- built these areas. One is that the federal reimbursement for administrative costs would be cut in half. So for the first time, we would have to have a local share in administering this program. We've been reimbursed fully from now recently.

And then for the first time, we will also be responsible for actually paying a portion of the premium for recipients. So-- and that amount is uncertain, and it depends on a number of different places. But we came to this number through our partners at the Association of Minnesota Counties that are-- that have been really helping this.

One area that isn't included in that staff number is actually where we have changes for eligibility. That could also add staff and could add an additional $10 million on top of that. So that's just SNAP.

And then for Medicaid, this-- it really comes down to a number of items where we are working on whether it's eligibility or other places that Medicaid-- there's a number of different places where we would be having to take on those administrative costs, and that's where that $6.4 million comes from.

NINA MOINI: Because part of the idea from Republicans is to be combing over spending, but you're saying it takes staff to then go back through and comb over all of that. When you're all putting your heads together at the county, are you concerned about being able to continue to provide these benefits? Could the county stop?

ANNIE HARALA: So this is not something that the county can just stop doing. And so because this is-- it's a-- it's a mandate that we are a part of-- it's a law that has been passed by Congress that is accessible to people that are eligible across the United States, and so it's our job as an arm of the federal and state government to implement these programs. And the only way that the counties can turn for this is to have to go to our property tax payers. And that is the last thing that I want to do, and so we have been working really hard with our federal delegation to really ask them to take the time to not pass down these costs or have-- to have this cost shift back to our local governments.

NINA MOINI: When you say you've talked with members of the federal delegation, Representative Pete Stauber represents your region. Have you talked with him specifically? What are some of their ideas if this law were to pass?

ANNIE HARALA: I really appreciate what our senior staff who have been really tracking this minute by minute. Had a long conversation last night with Representative Stauber, who then brought in a few of his colleagues from other areas to answer some questions, and he really took time to listen to the concerns of the county. He's a former county commissioner, and so we appreciate his time. And he was really receptive to that feedback, and that's as much as I understand at this point in time. But I do really appreciate his willingness to really connect with our leadership.

NINA MOINI: And like I said-- we said at the beginning, the House still on track to pass the bill, but it hasn't happened yet. You mentioned property taxes, and I know that that will probably make all of your constituents groan. But it's one of those things that counties sometimes rely on or cities. Have you been in this statement that you released trying to lay the groundwork with the public so that people aren't super disappointed, or what are you talking about when you're talking about raising the property taxes? Do you have numbers or a timeline on what that would look like?

ANNIE HARALA: So we are in the-- that's a great question. We just think it's really important that any time a policy comes that we are educating the public as often and as possible as we can, and with this significant of a shift, that may not take place this year only. This actually would have a couple of years that it would roll out where as we continue to learn more in this dynamic bill.

So we are in the process of setting our budget for this next year. And the state legislative session ran a little bit long, and so we're still managing that. And now we're looking at the federal implications. So we are always working on setting budgets, but right now our-- it-- it's a concerning look at our budget for the next year. And the last thing we want to do is pass that along to our constituents without them having an understanding of what this really could look like for their property bills.

NINA MOINI: And I didn't that Minnesota was among 10 states where county governments-- that doesn't seem like a lot of states-- county governments are managing these programs. Do you think that that's something that the state should look at managing, or do you think there are advantages to managing them on a more local level?

ANNIE HARALA: I think that's a really great question that many people will have to put their heads around the table on, and we as, of course, St. Louis County is willing to join that. But this will be something we will have to talk to state leadership about. And I do think it's important to say that it's not just the federal government that has talked about shifting these costs back. There was a talk at the state legislature to shift some state costs back.

So what I need to say as a county commissioner and what I'm hearing from county commissioners across the state is that we cannot be the place where other levels of government balance their budget. We work really hard, penny by penny, making sure that we're serving our folks. And everyone needs to make sure that when we're making the rules, we're paying for those rules that we're asking people to do.

NINA MOINI: And one of the things in the news release that you said to your point is at the county level, you all are aware of who are the people receiving these benefits and what their situations are and what they're going through when you're having to balance that with the law and making sure people are taking care of in the ways that they need. Supporters of these changes say that it helps to prevent fraud and wasteful government spending like we talked about. If this passes, what do you say to the folks who might be just feeling uncertainty and fear around what benefits they're going to be able to receive?

ANNIE HARALA: Absolutely. So first of all, the staff that sent out this statement have really been tracking those costs for the county level as a commissioner I make sure and ask them to do. As a person who's elected to serve the folks that will be directly affected by this, I'm concerned and have had a number of organizations and individuals reaching out to me with concern. And what we know as a county is that we will continue to comply with federal guidelines regardless of the funding because we are that neighbor. We just worry about what that impact will have to do about our entire population, but our continued-- our county continues to be that partner and boots on the ground for our state and federal government.

NINA MOINI: Commissioner Harala, thank you very much for your time this afternoon. I appreciate it.

ANNIE HARALA: Thank you very much. Have a great day.

NINA MOINI: Annie Harala is the chair of the St. Louis County Board of Commissioners.