Two more counties out of once 12-county merger causing commissioners to question next move

What started with 12 counties is down to four.

Freeborn and Houston counties both voted to opt out of a plan to merge human services in six counties, causing Mower County’s commissioners to question whether to move forward.

“It’s falling apart in other words,” Jerry Reinartz said when he heard the news.

The Southeastern Minnesota Human Services Redesign started with 12 counties, and as Reinartz pointed out, one key goal was to save money.

“The initial reason for this redesign was cost avoidance,” Reinartz said.

“All I can see is increased costs,” he added.

Under the 12-county model, consultant Accenture estimated the counties could save about $60.6 million over the next five years. However, those savings are now gone, and the main purpose for a merger becomes sharing services to improve efficiency, according to Human Services Director Julie Stevermer.

“You’re not going to have any more cost savings,” she said.

The redesign would still have merits, according to Stevermer, who talked about new state requirements and performance guidelines. If not met, counties could face penalties. The redesign would help maintain services, improve efficiencies and potentially keep costs from increasing.

“Hopefully, what we’ll look at is we’ll be able to maintain what we have,” Stevermer said.

County Coordinator Craig Oscarson said improved efficiencies could potentially lead to savings down the road.

“It kind of comes down to whether you think bigger will be more efficient,” Oscarson said. If three or four counties are more efficient, it could save money.

For the counties that stay in, it’s going to cost $160,000 for the next phase, but Bush Foundation officials have indicated they will pay half.

If the redesign fails, Commissioner Ray Tucker suggested joining joint powers agreements with other counties. Tucker also questioned the worth of moving forward without the cost savings, and he said the board’s potential double-digit levy increase could decreases the chances of the board voting to move forward.

“Now we’re using reserves to just balance the budget, and we’re coming to a time when that’s not going to be possible anymore,” Tucker said.

The county board is slated to vote on the merger next Tuesday.