St. Louis County Board approves $564 million budget for 2026

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 Administration • 100 North Fifth Avenue West, Room 202 • Duluth, MN 55802

Phone: (218) 726-2450 • www.stlouiscountymn.gov

Kevin Z. Gray
County Administrator

NEWS RELEASE

 

 

FOR IMMEDIATE RELEASE: 
December 16, 2026

MEDIA CONTACT: Dana Kazel, Communications Manager

218-725-5049 (office) • 218-591-2219 (cell)

 

St. Louis County Board approves $564 million budget for 2026

The St. Louis County Board approved its 2026 budget at $564,403,199. The budget ensures stability in the delivery of the county's broad range of services, including public safety, roads and bridges, public health and human services and general government while also factoring in inflation and the impacts of state and federal cost shifts. The final vote was 6-1, with Commissioner Ashley Grimm voting no.

 

The County is responsible for delivering services, many of which are mandated by state or federal law, to more than 200,000 residents spanning 7,000 square miles.

 

The 2026 budget also supports employee wages and rising healthcare costs while ensuring sustainability of the County's self-insured health fund. The budget reflects state and federal funding impacts, and also includes investments in critical infrastructure needs, economic development activities, housing infrastructure, and preventive programming to reduce long-term costs.

 

Approximately a third of the budget is funded by the property tax levy. The final levy was approved at $202,669,428 million, which is a 12.4% increase from this year.

 

"This is a tough vote but it's the right vote," said Commissioner Patrick Boyle of Duluth. "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 acknowledged that the levy increase is not sustainable and pledged to work in the next year to identify what's the appropriate role for the county to play on larger issues such as childcare and housing. 

 

"Everywhere you go, people have an opinion on the levy, which is fine," said Commissioner Paul McDonald of Ely. "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 County Board also voted on several other key matters:

  • Approved a $15.4 million contract with Johnson Wilson Construction for the comprehensive renovation of the heating, ventilation, and air conditioning (HVAC), mechanical, electrical, and plumbing (MEP) systems at the St. Louis County Depot.
  • Authorized a 35-year lease agreement with Eden Renewables to develop a 15-Megawatt solar installation on the county's former landfill in Hibbing. The 40-acre landfill has been closed since 1996 and is considered a brownfield. This lease agreement is expected to result in more than $1.5 million in revenue over the term of the lease for the county's enterprise fund, with additional revenue going to the City of Hibbing.

Today's meeting was the final Board meeting of the year. The County Board will next meet on January 6, 2026.

 

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Budget infographic

This graphic shows the broad breakdown of the 2026 St. Louis County budget, which the County Board approved on Tuesday.