2012 Hennepin County Proposed Budget Suggests 3.13-Percent Reduction

The Hennepin County Board of Commissioners received a proposed 2012 budget  at its meeting Tuesday, Sept. 27 of  $1.559 billion, which is 3.13 percent – or $50 million – less than 2011.

It is the third consecutive year where no property taxes for operations were proposed. According to a press release from Hennepin County, the net property tax levy for the proposed budget is $668.4 million, a decrease of approximately $1 million when compared to 2011’s level.

The proposal, provided by Hennepin County Administrator Richard P. Johnson, includes:

• Cutting 127 positions, “a trend that since 2008 has seen staffing reduced by a total of 490 positions, or 6.3-percent of the workforce,” according to the press release.

• Closing the Eden Prairie Service Center the first quarter of 2012 due to a “decline in transactions and revenue for the county’s seven service centers."

Planning for the 2012 budget began during the state shutdown. According to the county, it is estimated Hennepin County could lose $33 million in state revenues in 2011 and another $20 million in 2012 as a result of changes made to the state budget.

Many Hennepin property owners in 2012 will see a rise in taxes due to the State Legislature’s change in funding the Market Value Program, Hennepin County stated in the press release. Homeowners with homes of $183,000 or less will likely benefit from the Market Value Program change, whereas homeowners with homes valued at more than $183,000 (and other nonresidential property) will likely see increased property taxes of varying amounts.

A timeline of upcoming meetings can be found on the Hennepin County website here.