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Dec 24, 2025

CITIES REVOLT: 98 Minnesota Mayors Warn of Fiscal Crisis, Rising Property Taxes

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Minnesota — A rare and forceful backlash is emerging across Minnesota as 98 mayors jointly warn Gov. Tim Walz and state lawmakers that fiscal mismanagement, fraud, and unchecked government spending are placing severe strain on city budgets and driving property taxes higher for residents and businesses.

In a strongly worded letter sent to the governor and the Legislature, the mayors say decisions made at the state level have created a financial domino effect that is now hitting local governments hardest.

From Record Surplus to Massive Deficit

The mayors pointed to the rapid loss of an $18 billion budget surplus, followed by projections of a multibillion-dollar deficit, as evidence that Minnesota’s financial direction has gone off course. They argue that irresponsible spending and poor oversight have left cities scrambling to balance their own budgets.

According to the letter, when the state’s finances deteriorate, the burden is shifted downward through unfunded state mandates, forcing cities to comply with new requirements without receiving the money needed to pay for them.

Local Governments Running Out of Options

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City leaders warned that these mandates are leaving municipalities with only two choices: cut essential services or raise property taxes.

“We are being forced to make impossible decisions,” the mayors wrote. “When costs are pushed onto cities without adequate funding, residents and local businesses inevitably pay the price.”

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