Minnesota Mayors Unite to Express Concerns Over State’s Fiscal Management
A letter signed by 98 Minnesota mayors was recently sent to Governor Tim Walz, state senators, and representatives, highlighting the negative impact of the state’s fiscal management on their cities. This collective effort comes just a week before local governments are required to set their final property tax levies on December 29. The mayors are warning that the state’s fiscal decisions are placing a significant strain on their cities, ultimately affecting residents, including families, seniors, businesses, and workers.
Property Tax Levies on the Rise
Preliminary reports from the state Department of Revenue indicate that tax levies for cities are expected to increase by 8.7% in 2026, totaling roughly $4.02 billion compared to the final levy of $3.7 billion in 2025. This surge in property tax levies is a pressing concern for the mayors, who argue that the state’s expansion of programs and shifting of responsibilities without stable funding is forcing cities to bear the cost. As a result, counties are also considering raising property taxes in response to Medicaid eligibility restrictions.
A Call to Action
The letter, signed by mayors from across the state, including those from greater Minnesota and a few Twin Cities suburbs, urges the Legislature to reassess its fiscal policies and prioritize the needs of the people. The mayors emphasize that every dollar managed by the state belongs to the people of Minnesota, not the Capitol. This call to action comes as the state has already passed a roughly $67 billion two-year budget in the 2025 session, with $5 billion in cuts from the last state budget.
State Budget Forecast
A recent state budget forecast in December showed a decrease in the expected 2028 deficit from $6 billion to about $3 billion. Additionally, projections indicate that the state will work with a $2.57 billion surplus for 2026-27. Despite this, the mayors remain concerned about the impact of the state’s fiscal decisions on their cities and are seeking a more sustainable and equitable approach to funding.
Conclusion
In conclusion, the collective effort by the 98 Minnesota mayors highlights the need for a more nuanced approach to fiscal management at the state level. As the 2026 session approaches, lawmakers will have the opportunity to pass a supplemental budget and make other financial decisions, such as allocating funds for a bonding bill. It is essential for the state to prioritize the needs of its cities and residents, ensuring that every dollar is managed with their best interests in mind. For more information, visit Here
Image Source: www.twincities.com
