08.c MN Mayors Facts-Tax Levy
Minnesota Mayors
December 7th, 2025
Dear Minnesota State Representatives, Senators, & Governor Walz,
As mayors representing cities of every size across the State of Minnesota, we are on the front lines of
delivering essential services, maintaining public safety, and ensuring that our communities remain places
where families and businesses can thrive. It is from this position of direct responsibility that we write to
express deep concern—and growing frustration—about the fiscal direction of the state and its increasing
impact on our cities and the residents we serve.
Minnesotans watched an historic $18 billion surplus disappear in a single biennium, only to now face
an updated projected $2.9 billion–$3 billion deficit in the 2028–29 biennium.¹ As mayors, we see
firsthand how these decisions ripple outward. 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 recent Minnesota Chamber of Commerce report shows our state slipping in national economic
rankings,² and these statewide indicators match what we observe at the local level. Between 2019 and 2024,
Minnesota ranked:²³⁴
• 33rd in GDP Growth
• 39th in Job Growth
• 40th in Labor Force Growth
• 33rd in Per-Capita Income Growth
• 46th in Median Household Income Growth
• 44th in Tech Job Growth
• 44th in Overall Tax Competitiveness
• Net out-migration of nearly 48,000 residents from 2020–2024³⁴
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.
On top of these economic realities, many Minnesota cities are confronting significant property tax levy
pressures. Preliminary statewide data, on average, for 2026 shows cities may raise levies by up to 8.7%,
with counties up to 8.1%.³ These increases are not simply local decisions; they stem directly from state
policies, mandates, and cost shifts that leave cities with no choice but to pass these burdens onto
homeowners and businesses.
Representing Cities Across the State of Minnesota
As mayors, we are committed to responsible budgeting, fiscal restraint, and delivering high-quality local
services. Yet 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.
Cities are the level of government closest to the people, responding when snowplows don’t arrive, when
streetlights or water mains fail, when businesses need permitting help, or when seniors seek support. Every
unfunded mandate or cost shift forces us into difficult choices: raise taxes, cut services, delay infrastructure,
or stretch thin city staff even further. This strain now extends to the very core of community safety—our
police officers and firefighters. They are the frontline protection for our residents, yet rising levies and state-
imposed costs are making it increasingly difficult for cities to invest in the additional public safety staff our
communities genuinely need to stay safe.
Minnesotans expect the following from their elected leaders—at every level:
• Responsible and transparent state budgeting
• A regulatory and tax environment that supports jobs and economic growth
• Protection for taxpayers—especially those on fixed incomes
• Stability and predictability for local governments
• Long-term fiscal sustainability that does not rely on one-time windfalls
When these expectations go unmet, cities feel the consequences first—and our residents feel them the
most.
We extend our sincere appreciation to the legislators who continue to advocate for fiscal discipline, pro-
growth policies, and local government stability. Your work does not go unnoticed.
At the same time, we must emphasize:
Our residents deserve better than deficits, economic decline, and policies that push families and businesses
away. We, as mayors, can only support our cities for so long before the heavy hand of state mandates
and financial pressure demands more than our communities can provide. Although state statute requires
a balanced budget, relying on one-time surplus dollars to support ongoing commitments has created
structural strain—reducing the state’s ability to sustain existing programs or invest in new ones in the years
to come. 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.
Respectfully,
The Undersigned Mayors of Minnesota
Footnotes (Print Version)
1. Minnesota Management & Budget Forecast / MPR News Coverage –
Updated state economic forecast showing a projected $2.9–$3.0 billion deficit in FY 2028–29.
Source: https://mprnews.org/story/2025/12/04/new-minnesota-economic-forecast-will-dictate-scope-of-2026-session
2. Minnesota Chamber of Commerce – Business Benchmarks Report
Rankings on job growth, GDP growth, workforce strength, and business competitiveness.
https://www.mnchamber.com/businessbenchmarks
3. KSTP News — “Which Minnesota cities are facing the biggest property tax hikes?”
Preliminary 2026 levies show city increases up to 8.7%, county increases up to 8.1%.
https://kstp.com/tracking-your-tax-dollars/which-minnesota-cities-are-facing-the-biggest-property-tax-hikes/
4. KSTP News — Additional Tax Impact Reporting
Coverage of statewide homeowner impacts and rising property tax burdens.
https://kstp.com/kstp-news/top-news/minnesotans-could-face-950m-in-property-tax-increases-in-2026/