98 Minnesota mayors warn state spending, fraud are forcing property tax increases and squeezing cities
Ninety-eight Minnesota mayors warned Governor Tim Walz that state spending, alleged fraud and unfunded mandates have eroded an $18 billion surplus into a projected $2.9–3 billion deficit, forcing cities toward property-tax hikes and service cuts.
- Collective warning: Ninety-eight mayors signed a public letter on Dec. 22, 2025; see the full letter and list of signatories.
- Big swing in state finances: An $18 billion surplus reported one biennium ago is now replaced by a projected $2.9–3 billion deficit for 2028–29 (WDIO coverage).
- Local pain: Preliminary data cited by the mayors estimate a roughly 6.9% statewide property tax increase next year, about $950 million pushed to local taxpayers (mayors’ letter).
What the mayors said
In an open letter to Governor Tim Walz, the group — representing towns from small communities to mid-size cities and including mayors from Minnesota’s Northland — said state-level fraud, unchecked spending and unfunded mandates are eroding local budgets. The letter states cities are delaying capital projects, cutting services, tightening staffing, and facing pressure to raise property taxes to cover growing costs. Read the Full text and see related coverage.
“Protect taxpayers on fixed incomes, avoid passing costs down to local governments, and prioritize long-term fiscal discipline over one-time fixes,” the mayors wrote, urging lawmakers to act.
Numbers behind the alarm
The math highlights a dramatic swing: one biennium ago Minnesota officials reported an $18 billion surplus; current projections show a $2.9–3 billion shortfall for 2028–29, a central point of the mayors’ complaint (WDIO report).
Local officials also cite a preliminary statewide property tax increase near 6.9%, roughly $950 million in added local taxes — a burden the mayors attribute in part to state fiscal choices (mayors’ letter PDF).
Fraud, unchecked spending and unfunded mandates
The letter names fraud and weak fiscal controls as contributors to budgeting instability, arguing that improper use of funds and oversight gaps hinder long-term planning. While the mayors do not detail specific fraud cases in the letter, they echo broader concerns voiced by state leaders about oversight and improper spending (WDIO; mayors’ letter).
Unfunded mandates are singled out as a major pressure point: requirements for schools, human services and public safety can increase local costs without matching state funding, forcing city leaders to choose between raising property taxes, cutting services, delaying projects or reducing staff.
Political responses and wider debate
State Republicans used the letter to press for spending restraint. Senator John Lang urged leaders to root out fraud, cut spending and loosen mandates.
Separately, commentators and state officials — including State Senator Michael Kreun, Townhall columnist Dustin Grage, and former federal prosecutor Joe Teirab — have discussed an evolving conversation about fraud and oversight in Minnesota’s fiscal systems. Reporting indicates these discussions are distinct from the mayors’ letter; there is no public record linking these commentators directly to the letter or its signatories (WDIO; mayors’ letter PDF).
How cities are feeling it now
Mayors report immediate local effects: difficulty recruiting and retaining staff at current pay levels, increased overtime, rising construction and materials costs for road and utility projects, and slower private investment that reduces local revenue. In some communities, families are leaving for states with lower taxes and faster economic growth — a trend mayors call alarming (mayors’ letter).
What the letter asks from state lawmakers
The mayors presented a clear set of requests:
- Restore fiscal discipline and avoid using one-time windfalls to cover recurring costs.
- Tighten fraud controls and increase transparency in state spending.
- Fund mandates or remove them so cities are not left with unfunded obligations.
- Protect taxpayers on fixed incomes from disproportionate property tax increases.
Implications for Walla Walla, Washington
Economic impact: Minnesota’s experience serves as a cautionary example: higher local levies, delayed capital projects and pressure on residents on fixed incomes are potential outcomes if Washington state shifts costs to cities (mayors’ letter).
Political consequences: The Minnesota coalition shows how local leaders can organize to press state lawmakers for fiscal restraint — a model Walla Walla officials and county leaders could adopt to protect budgets and resist unfunded mandates.
Social effects: Vulnerable residents — seniors, low-income families and small businesses — would likely feel the first impacts from property-tax hikes or service cuts; the mayors’ letter highlights the need for targeted protections for those on fixed incomes (mayors’ letter PDF).
Practical applications for local officials and residents
- Review budgets for vulnerability to state cost shifts and identify reserve levels to withstand unexpected mandates or revenue shortfalls (mayors’ letter).
- Advocate for transparency and stronger oversight in state spending to reduce fraud risks that ripple down to cities (WDIO).
- Build coalitions among city and county leaders to press the state legislature for clear funding commitments before accepting new mandates that increase local costs (mayors’ letter PDF).
Reporting and sources
- Full Minnesota mayors’ letter and signatories
- WDIO coverage of the mayors’ letter and statewide impact
- Senator John Lang response and GOP state perspective
- KSTP reporting and PDF release and KSTP video tied to the letter release
For the full list of signatories, the mayors’ complete letter and original reporting, consult the source documents linked above.
