Dakota County at a crossroads

Challenges and opportunities in 2025

By Joe Atkins | Dakota County Commissioner | March 2025

Meanwhile, the state’s economic outlook is mixed. Economists forecast a modest surplus for the next two years, but a projected multibillion-dollar deficit by 2028 raises concerns for longterm planning. At the federal level, a new administration and one-party congressional control introduce further uncertainty regarding potential mandates and funding shifts.

Governor’s proposed budget: implications for Dakota County residents – Governor Walz’s proposed budget includes several provisions that would significantly increase costs for counties and local taxpayers. Key changes include new county funding responsibilities related to the Minnesota Sex Offender Program, disability waiver services, and the behavioral health fund. While some proposals, such as long-overdue upgrades to child protection software, are beneficial, the new mandates, cost-sharing shifts, and aid reductions amount to more than $200 million in additional expenses for Minnesota counties.

Shifting costs to counties does not reduce overall government spending – it merely changes who pays. In this case, it places a heavier financial burden on local property taxpayers. I recognize that the governor’s proposal is just the starting point for legislative discussions, and I remain hopeful that both parties will work together to ensure that the local impact is fully understood and mitigated.

Federal funding freeze: a cause for concern – In late January, the White House announced a temporary freeze on all federal grants and loans, affecting a broad range of programs that counties are required to implement. This decision put trillions of federal dollars – including funds for health care, education, housing assistance and disaster relief – on hold pending a review to ensure alignment with the new administration’s priorities. While federal district courts temporarily blocked the freeze just before it took effect, this situation highlights the ongoing funding instability that counties will likely face in the coming months and years.

The Atkins Diet: a frugal approach to county budgeting – In times of economic uncertainty, careful financial stewardship is essential. Whether managing my own household budget or the county’s finances, I adopt an even more frugal approach when faced with uncertainty.

Here are a few steps we’ve taken to keep Dakota County’s budget in check for 2025:
Expense reductions – We cut $250,000 from Community Services and Central Service department budgets to offset rising costs.
Staffing efficiencies – Rather than adding new positions, we reallocated existing staff to areas of greater need.
Revenue generation – We expanded solar energy production at service centers and libraries, helping offset increases in electricity costs.
Streamlined elections – Collaborating with local governments, we centralized absentee voting, making the process more efficient, secure and cost-effective.
Strategic investments for long-term gains – Being fiscally responsible does not mean disinvesting in initiatives that yield long-term benefits. Despite budgetary caution, we continue to make strategic investments in key areas:
Mental health services – Last month, the Crisis and Recovery Center in West St. Paul opened its doors. Funded entirely by grants, this facility will provide much-needed mental health services to individuals and families in crisis.
Opioid crisis response – We are using funds from a nationwide opioid settlement to prevent overdoses, reduce crime, and expand our award-winning initiative that pairs county social workers with local law enforcement to respond to mental health calls. This program improves outcomes, reduces repeat calls and enhances safety for all involved.
Sustainability leadership – In 2025, Dakota County will be the only U.S. county generating more electricity than its government buildings consume, thanks to newly installed hydroelectric turbines at our county-owned dam. These turbines will generate roughly $1 million annually, lowering costs for taxpayers and reducing greenhouse gas emissions.
The power of collaboration – Strong partnerships with city, state and federal officials, school boards, community organizations, and volunteers remain key to delivering high-quality services efficiently. Fortunately, Dakota County has a long-standing tradition of bipartisan cooperation, particularly in public safety.
One notable example is Dakota911, our emergency response system. Dakota County and its cities collaborate to ensure that 911 calls are answered within seconds, enhancing public safety while also saving taxpayers about $1 million annually.

Looking ahead – Despite the challenges ahead, I am confident in Dakota County’s ability to navigate 2025 and beyond. Our history of innovation, fiscal responsibility and collaboration positions us well to tackle these uncertainties and seize new opportunities. By working together, we can continue to build on past successes, address current needs and prepare for a thriving future.

Joe Atkins represents District 2 on the Dakota County Board, which includes South St. Paul, West St. Paul, and Inver Grove Heights. He welcomes feedback. To share comments, concerns or questions, contact him at Joe.Atkins@co.dakota.mn.us or 651-438-4430.

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