98 Minnesota mayors warn state fiscal policies fuel deficits, higher local taxes

A group of 98 Minnesota mayors raised concerns with state leaders in a letter about their state’s fiscal policies, saying they have impacted their cities and residents, noting a disappearing $18 billion surplus and a projected $2.9 billion to $3 billion deficit for the 2028-29 biennium.

In a letter to state lawmakers and Gov. Tim Walz, the 98 mayors expressed concern and frustration, said the state was slipping in national economic rankings.

“Fraud, unchecked spending, and inconsistent fiscal management in St. Paul have trickled down to our cities—reducing our capacity to plan responsibly, maintain infrastructure, hire and retain employees, and sustain core services without overburdening local taxpayers,” the etter states. 

‘EPICENTER OF FRAUD’: MINNESOTA’S EMPTY STOMACHS, FAKE AUTISM THERAPY AND A SCANDAL THAT COULD TOP $2 BILLION

Cities across the state now face workforce shortages, slowed business investment, rising operational and construction costs, and families choosing to leave Minnesota altogether, the letter states. 

In addition, the mayors noted potential property tax increases as a result of unfunded state mandates and costs that force cities to shift the burden to residents and businesses.

“There is a growing disconnect between state-level fiscal decisions and the strain they place on the cities we lead, the letter said. “When the state expands programs or shifts responsibilities without stable funding, it is our residents—families, seniors, businesses, and workers—who ultimately bear the cost.”

Unfunded mandates include requests for schools, health and human services, and public safety.

Minnesota Republican lawmakers put the blame on Walz and Democrats. 

MINNESOTA’S ANTI-FRAUD SPENDING HAS QUIETLY BALLOONED, LEAVING TAXPAYERS TO PAY FOR FAILURE TWICE

“Governor Walz and Democrats passed unaffordable spending and tax increases along with unfunded mandates on the promise it would make life more affordable,” state Republican Sen. Andrew Lang, who serves as the Lead on the Senate State and Local Government Committee, said in a statement. “In reality they just passed down the costs to local governments, schools, and small businesses, who in turn pass down costs to local taxpayers and consumers.

“Minnesota Counties sounded the alarm early last session about the proposals to shift costs onto their budgets, so I’m not surprised that nearly 100 mayors across the state are raising their own concerns. This letter is a warning that we must reduce state spending, stop the massive fraud plaguing our state, and remove unnecessary mandates to keep life affordable for everyone.”

Fox News Digital has reached out to Walz’s office. 

The mayors noted that a state statute requires a balanced budget but that relying on one-time surplus dollars has created structural strain. 

“Our state owes it to our citizens to practice responsible fiscal management and to stop taxing our families, seniors, and businesses out of Minnesota,” they said. “We urge the Legislature to course-correct and to remember that every dollar you manage belongs not to the Capitol, but to the people of Minnesota.”