Hennepin County employees asked to take a day unpaid to prepare for potential federal funding cuts

Hennepin County unpaid leave

Hennepin County is asking employees to consider taking a day without pay this year.

County Administrator David Hough sent a letter earlier this month asking assistant county administrators to voluntarily take 24 hours unpaid and all other employees take eight hours unpaid in 2025.

“We have done this in the past,” said Hough. “In a meeting with our union leadership, it was proposed, and I said, ‘Absolutely, we will look at it.’”

The last time the county used the Special Leave Without Pay program was following the 2008 financial crisis. Hough explained it was implemented three times and was mandatory.

This time, it’s optional for county employees. The request comes as the county braces for potential federal funding cuts.

According to Hough, the county receives $217 million in direct federal grants and $300 to $400 million in pass-through indirect funding. He said he’s most concerned about funding for HUD, Medicaid, Homeland Security, housing and shelter and food reimbursement.

Starting in January, the county decided to reevaluate its 2025 budget.

“We started holding positions vacant that were funded for cost savings, and we looked at a whole host of things, cost-saving efforts, now in the event that we were receiving less in state and or federal dollars,” said Hough.

He explained the county has left about 500 to 600 funded positions vacant, and departments have been asked to reduce 2025 budgets by 2% to 5%.

“I want to make sure we’re prepared, being proactive versus waiting until the end and determining we have a real challenge here,” said Hough.

In his letter to employees, he estimates if all employees take eight hours unpaid in 2025, the county will save $2.6 million. The county has a $3.1 billion budget.

“It is a significant amount, but it also shows our employees have a vested stake at trying to help us achieve the savings we’re working through,” said Hough. “I’m not talking about layoffs, I’m not intending to do that, but it’s the equivalent of 26 employees.”

He said if they get to the end of the year and don’t face the expected federal funding cuts, employees will not get a refund. Hough explained the cost savings would go back into the general fund for next year.

There is no deadline for employees to take the day unpaid, and they are encouraged to take more than eight hours, according to Hough. It does have to be approved by supervisors to ensure other employees don’t accrue overtime to fill the gap.

You can view the letter sent out by Hough in its entirety below:

There are several discussions taking place to identify ways to address significant federal and state budget cuts to Hennepin County. As we try to best position the county for the future, one idea which has been discussed to realize some short-term savings is the Special Leave Without Pay program. The program has been effectively utilized in the past as an option for cost savings.

Use of the voluntary Special Leave Without Pay program by all employees could save a significant amount of money that will:

• allow the county to keep positions intact
• save property tax dollars
• delay service cuts and/or reductions

We’ve estimated that if all Hennepin County employees took 8 hours of Special Leave Without Pay in 2025, the county would save $2.6 million. Assistant county administrators and department directors have been asked to take 24 hours of unpaid leave.

Using the Special Leave Without Pay coding (SLWOP – Absent Unpaid – SAU) on your timecards will allow continued accrual of vacation and sick leave or PTO and continued eligibility for healthcare and related benefits. You can find additional information about Special Leave Without Pay by visiting: Hennepin County The Bridge. SLWOP must be pre-approved by your supervisor and approval is dependent upon our ability to maintain service levels without additional cost to the county.

We’ve experienced hardships before and have come through the other side. I appreciate your willingness to participate in cost saving measures that will help to ensure ongoing services for our residents.

For Related Stories: Callan Gray  Hennepin County