Dozens of Minnesota mayors have signed onto a letter to state leaders, raising concerns about the rising costs and financial pressures cities are facing due to state mandates.
The group of 98 mayors published the letter publicly on Monday, highlighting rising property taxes, declining state budget projections and the recent fraud investigations as reasons for “deep concern—and growing frustration” about the state’s fiscal direction.
“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 letter says, in part.
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5 EYEWITNESS NEWS has reported extensively on rising property taxes, which are preliminarily set to increase by nearly $950 million across the state next year — a 6.9% increase from 2025.
The local leaders say those increases are necessary because of state policies and unfunded mandates, which include requirements for schools, health and human services systems, and public safety policies. On Jan. 1, another will hit the ledger when the new statewide paid family and medical leave program takes effect.
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“Every unfunded mandate or cost shift forces us into difficult choices: raise taxes, cut services, delay infrastructure, or stretch thin city staff even further,” the letter states.
Gov. Tim Walz and DFL leaders at the Capitol have touted historic investments in education and health care in recent years, passing legislation they’ve said not only improves the lives of Minnesotans across the state but also cares for the most vulnerable. However, Republicans have railed against many of the policies and criticized “unchecked spending” by lawmakers, the same phrase used by the mayors in their letter. Additionally, they’ve accused Democrats of creating programs and figuring out how to pay for them later.
“House Republicans have been sounding the alarm for years over the overspending and excessive mandates Democrats have imposed, and now their negative effects are hitting our cities across Minnesota. Democrats refused to listen to Republicans – I hope now they’ll take concerns about their irresponsible legislating seriously,” Speaker Lisa Demuth told 5 EYEWITNESS NEWS.
“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,” Sen. Andrew Lang (R-Olivia) added.
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A spokesperson for Governor Walz sent KSTP the following statement:
“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.
“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.
“The governor will continue to focus on ways to lower costs, but local governments also have a responsibility to manage their budgets and state aid responsibly.”
The mayors also cited a recent report from the Minnesota Chamber of Commerce, which showed the state slipping in national rankings over the past six years, something the chamber said should be a “wake-up call” to state leaders.
According to those statistics, Minnesota’s GDP has grown by just 1% per year since 2019, compared to the national average of 1.8%; the labor force has increased just 0.2% annually, ranking 40th nationally; and nearly 48,000 more Minnesotans left the state than moved here between 2020 and 2024.
In their letter, the mayors called on state lawmakers to “course-correct” and focus on policies that encourage growth and local stability.
The League of Minnesota Cities lists 856 cities in the state, so the 98 mayors would account for roughly 11.5% of cities — a significant chunk. The map below indicates the location of each city whose mayor signed the letter, which is also available to read below.