Nearly 100 Minnesota mayors sent a letter to Gov. Tim Walz (D-MN) and state lawmakers expressing concern about the state’s economic direction.
The mayors noted that the state is facing a disappearing surplus and will be at a nearly $3 billion deficit from 2028 to 2029.
“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,” said the letter, obtained by the Washington Examiner.
The mayors noted that the state ranks in the bottom half of states in GDP, jobs, labor force, per-capita income, median household income, and tech job growth. They also noted the state ranks 44th in overall tax competitiveness and experienced an out-migration of about 48,000 residents from 2020 to 2024.
“These are not abstractions—they represent the real pressures faced by our cities: workforce
shortages, slowed business investment, rising operational and construction costs, and families
choosing to leave Minnesota altogether,” they wrote.
The mayors said property tax increases could be on the horizon because of the strain that Minnesota state leaders have placed on cities, costs that they could then shift to their residents.
“There is a growing disconnect between state-level fiscal decisions and the strain they
place on the cities we lead. 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,” they wrote.
Walz’s office told WSTP that the governor has focused on lowering property taxes, and the surplus went back into city governments.
“The Governor’s focus on lowering property taxes is exactly why he has provided more funding than any administration in history directly to local governments,” it said.
“The surplus went directly back into the bottom line of local governments: $300 million for their police and fire departments, the largest infrastructure budgets in state history, funding to remove lead lines, the largest-ever increase in flexible local government aid, and property tax relief directly to taxpayers,” his office added.
The mayors urged the state to change its course and practice responsible fiscal management.
“Our state owes it to our citizens to practice responsible fiscal management and to stop taxing our families, seniors, and businesses out of Minnesota. 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,” they wrote.
Walz’s office placed some of the blame on local governments for financial shortfalls, saying they “have a responsibility to manage their budgets and state aid responsibly.”
Most mayors hold nonpartisan offices, and at least two are Republicans: Jennifer Carnahan, the mayor of Nisswa and former Minnesota state GOP chairwoman, and Dan Fabian, the mayor of Roseau and former state GOP representative.
Most mayors who signed the letter are from small towns of less than 10,000 people.
Republican state legislators also pinned the blame on Walz and the state government.
WALZ SAYS HE WOULD ‘WELCOME MORE’ SOMALIS AS FRAUD INVESTIGATION INTENSIFIES
“Governor Walz and Democrats passed unaffordable spending and tax increases along with unfunded mandates on the promise it would make life more affordable,” Republican state Sen. Andrew Lang, who serves as the lead on the Minnesota Senate State and Local Government Committee, told Fox News.
“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,” he added.
