Ninety-eight Minnesota mayors sent a blunt letter to state leaders warning that mounting deficits, a vanished $18 billion surplus, and growing unfunded mandates are already hitting cities and residents hard. They said staffing shortages, stalled investment, and rising costs are forcing local governments to consider passing burdens onto taxpayers unless the Legislature changes course. The mayors urged lawmakers to recognize the gap between statewide promises and the real price paid by families, seniors, and small businesses.
The mayors’ note to state lawmakers and Gov. Tim Walz lays out a stark fiscal picture: a once-noted $18 billion surplus that has essentially disappeared and a projected $2.9 billion to $3 billion deficit for the 2028-29 biennium. That math, they say, is not academic; it translates into delayed projects, hiring freezes, and harder choices at city halls across Minnesota. Local leaders describe the situation as a strain on their ability to deliver basic services without shifting costs to residents.
“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 letter states. Those are not accidental words; they reflect frustration from officials who must balance budgets while seeing state resources ebb. The mayors argue the state has leaned too heavily on one-time dollars instead of building sustainable funding streams.
Cities around Minnesota are reporting the fallout: workforce shortages in key departments, stalled private investment, and construction budgets blown out by rising material and labor costs. Families, the letter says, are also voting with their feet in some places, choosing to leave the state rather than cope with higher everyday expenses. Mayors worry about long-term consequences if local governments are forced to raise property levies to cover mandates handed down from the Capitol.
Unfunded mandates are central to the complaint, touching education, health and human services, and public safety. 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. “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.”
Minnesota Republicans have been clear about where they place responsibility for the fiscal squeeze. “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.”
The mayors also remind lawmakers that Minnesota law requires a balanced budget, and relying on one-time surplus dollars masks structural problems. Cities contend that short-term fixes and emergency draws on reserves only postpone hard decisions and increase the likelihood that local taxpayers will pick up the tab later. Local leaders want a return to predictable, transparent budgeting that lets them plan multi-year investments in roads, public safety, and essential services.
Practical consequences are already visible: postponed infrastructure repairs, fewer police and fire hires, and tighter school district budgets. Local business owners face higher operating costs when municipalities shift fees or property taxes to cover state-imposed requirements. The mayors insist the Legislature should prioritize cutting waste, tackling fraud, and aligning responsibilities with funding so communities can breathe easier without sacrificing services.
