Grundy County Board of Health approves FY26 budget with caveat over potential federal and state grant cuts

The Grundy County Board of Health on Monday voted to approve a proposed fiscal year 2026 budget for the health department that sets the county subsidy at $762,382 while asking the county finance office to present a conservative, worst-case assessment of anticipated grant losses before the county finalizes appropriations.

The board’s approval followed an extended presentation from Tammy, Health Department staff, who said the subsidy figure and the budget “points of consideration” reflect recent conversations with the county finance director and division managers. Tammy told the board that the department is already seeing grant reductions: “we've had a loss of a 160,000 with age guide, 13,000 with FDA, 250,000 with respiratory surveillance,” and that they had been notified of a potential 27.3% reduction to the FEP grant, representing roughly $20,000 on current estimates.

The board’s motion to approve the budget included an explicit caveat that the county finance director and health department staff provide finance-committee members with a list of grants at risk, dollar amounts, and a worst‑case scenario projection prior to or at the next county finance meeting. The motion passed on a voice vote after the maker and a second were recorded and no members opposed.

Why it matters: The department’s operating revenue includes a combination of local subsidy, fee revenue, Medicaid reimbursements and restricted grants. Several divisions — including behavioral health and some surveillance programs — face reductions or elimination of state and federal funding, which the department says could materially increase the county subsidy required to maintain current services.

Board discussion focused on transparency and contingency planning. Board members asked for a conservative budgeting approach. One board member summarized the group’s preference: approve now with an asterisk for potential revision later, while planning for the “worst case” so the county will not need an urgent midyear supplemental appropriation. Tammy said she and county staff will follow up with the finance director, Matt Melvin, who has access to the detailed budget workbook and will present the figures to the county finance committee.

Background details: Tammy said that some grants and reimbursements that previously supported nursing and surveillance work have been lost or reduced. The department’s presentations and attachments to the board packet include a roll-up of restricted funds (listed as potential revenue) and the expenses tied to those grants; Tammy offered to review the workbook with any board member who wanted more detail. The board also was told that the budget as presented contains placeholders for both union and non‑union labor outcomes because negotiations with the county and union remain unresolved.

Next steps: The approved budget will go to the county finance committee; the board requested that staff and the county finance director present a clear, itemized listing of grant losses and a conservative contingency estimate at that meeting. The board reserved the right to revisit and amend the subsidy amount if federal or state grant reductions become final.

Ending: The board adopted the budget with the stated caveat and directed staff to return with the additional grant‑risk details in time for county finance committee review.