Winona County approves 11% tax levy increase

After getting an earful from citizens concerned about next year's property tax hike, the Winona County Board, in a 3-2 vote, approved an 11% increase in the 2026 property tax levy. It's a reduction from the initially proposed 12.5% but still the largest increase in over a decade.

County officials faced a $5 million deficit when they first started planning next year's budget. That was largely driven by $3 million in increased payroll costs, a combination of higher health insurance premiums, annual raises for staff, and Minnesota's new Paid Family Leave law. The 11% increase in the total amount of property taxes collected next year will generate $2.8 million in additional revenue, partially offsetting the shortfall. The county is also relying on reserves and some debt for maintenance projects and equipment replacement. Total spending is up 1.9% in next year's $82.8 million budget.

"This is not sustainable for us in production ag," said David Unruh, of rural Stockton. "I cannot raise my price on soybeans … I have to suck it up." Unruh was one of several farmers who showed up to the board's December 11 Truth-in-Taxation hearing to speak out about rising property taxes. He said year after year of steep increases would prompt farmers across the county to lower their tax bills the only way they can — by selling off woodlands and other unproductive land. "You're going to tax us off of things that our forefathers passed down to us for generations," he said.

Sheep and cattle farmer Kelley O'Neill, of rural Rushford, said his property tax bills are up an average of 28% since 2023, including next year's proposed increase. As a farmer who won't benefit from federal bailouts, "It's pretty damn difficult, pardon my French. And these tax increases do not assist," he said.

"Your labor costs are increasing, yes, but all of the businesses in the county are also facing [those challenges],"rural Rollingstone farmer Mark Clark said. "… As a county, you need to become more efficient like the private sector businesses have to be."

"Over 12% is excessively high," said Winona resident Ted Hazelton, who noted his Social Security check was going up just 2.8%. He was critical of the county's plans to dedicate over $700,000 to various outside organizations, including the county fair, Soil and Water Conservation District, and Winona and St. Charles food shelves. "Why should taxpayers have to pay that? … It's unsustainable for people on fixed incomes," he said.

Cutting these contributions to outside agencies was a frequent topic of debate this fall and in past years. In a 3-2 vote on December 23, the County Board agreed to contribute $740,000 to 22 different organizations next year. Some are community organizations such as the Winona County Fair, Winona County Historical Society, and local American Legion and VFW posts. Some are social service organizations, such as the Advocacy Center of Winona, which assists survivors of domestic and sexual violence; Big Brothers Big Sisters; local food shelves; Winona Area Humane Society; and the Southeast Minnesota Community Action Coalition (SEMCAC). Others are governmental entities that assist with the county's mission, such as the Winona County Soil and Water Conservation District and the city of Winona's Senior Advocacy Center, or organizations that also provide services to the county, such as Project FINE's foreign language interpretation. Only one, a contribution to local libraries, is required by law, though the county's $274,000 allocation exceeds the minimum required.

County Board members Marcia Ward and Josh Elsing argued for cutting some of these contributions, arguing taxpayer dollars shouldn't fund charities — however good the cause — and highlighting that a few of the organizations have large fund reserves. Elsing and Ward voted with the board majority in favor of funding veteran groups, a total of $810, and dissented in a 3-2 vote approving $739,000 for the various other groups.

Ward and Elsing opposed the 2026 budget and tax increase generally. "We haven't cut anything," Ward said. "We've rearranged the dollars some. We rearranged the people." However, the county hasn't made meaningful reductions to try to lower the tax hike, she argued. She highlighted Auditor-Treasurer Chelsea Wilbright's recent plea for more staff in her office to meet statutory requirements for tax notices and other duties. "When we can't provide our taxpayers with current, accurate tax statements, we're failing them. And yet we're giving money to nonprofits," Ward said.

When costs rise, the county can simply raise taxes, but local businesses and farmers don't have that luxury; they have to make do with less, Elsing said. The county can and should do the same, he argued. "If we cut 10% out of government, would everything shut down? … No it would not all shut down," he added.

County Board members Chris Meyer, Greg Olson, and Dwayne Voegeli voted for the tax increase, saying the county had cut costs and the increase was needed to provide critical services.

From an initial deficit of $5 million, county staff found over $2 million in reductions to reach the final $2.8 million levy increase, so it's untrue to say the county didn't cut anything, Meyer said. She said the state and federal government put the county in this situation with underfunded mandates. Meyer also highlighted a particular constituent's story, an elderly couple in which one spouse was acting as a caregiver until their own declining health led them to apply with the county for help. They called in July and heard the soonest the county could get them in for an assessment of what services they might qualify for was March 2026, Meyer said. In the meantime, the second spouse's health declined further, creating a safety issue. If the county doesn't raise taxes to keep up with the cost of providing services, it's going to make that sort of "inadequate" response worse, she said. Meyer said that she ran for County Board because the services the county provides to its most vulnerable citizens really make a difference. "I want us to be able to deliver those services. So I do support this budget," she said.

Olson talked about buying toilet paper for the Houston County Jail in his day job as a maintenance foreman there. "The toilet paper I buy is the best deal I can find. And we use the same amount, but the price has increased," he said. Despite his best efforts, costs are going up, Olson said. In Winona County, he added, "I trust that the employees who are making these decisions are doing so with the utmost look at cost and outcome and consequence."

"This is what tax breaks for the ultra rich and millionaires looks like," Voegeli said, echoing his past criticism of the federal Big Beautiful Bill's budget cuts. "The buck gets passed from the federal government to the state and from states to counties." Everyone needs to keep pushing back against that trend, he said. While there's always room to trim the budget, he added, "Sometimes we need to be careful about being pennywise and pound foolish."

Chris@winonapost.com