In a significant move, 98 mayors from across Minnesota have voiced their apprehensions regarding the state’s fiscal management through a letter addressed to state leaders. They highlighted the repercussions of these policies on their municipalities and citizens, drawing attention to the concerning transformation of an $18 billion surplus into a projected deficit of $2.9 billion to $3 billion for the 2028-29 biennium.

Addressed to state legislators and Governor Tim Walz, the letter articulates a growing sense of frustration and anxiety over Minnesota’s declining position in national economic standings. The mayors are urging state officials to acknowledge and address the fiscal challenges that have begun to impact local governance.

The letter accuses the state of St. Paul of poor fiscal practices, describing issues such as fraud, unchecked spending, and inconsistent financial management. These problems, according to the mayors, are trickling down to the municipal level, hampering their ability to plan effectively, maintain essential infrastructure, hire and retain necessary staff, and provide core public services without imposing undue burdens on local taxpayers.

The document also outlines the broader economic consequences facing Minnesota’s cities. Mayors report challenges like workforce shortages, decreased business investments, escalating costs for operations and construction, and a concerning trend of families opting to leave the state.

A particularly pressing issue raised in the letter is the potential for increased property taxes. The mayors warn that unfunded state mandates and rising costs may force cities to transfer these financial burdens onto residents and local businesses, further exacerbating the economic strain on communities across Minnesota.

“There is a growing disconnect between state-level fiscal decisions and the strain they place on the cities we lead, the letter said. “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.”

Unfunded mandates include requests for schools, health and human services, and public safety.

Minnesota Republican lawmakers put the blame on Walz and Democrats. 

“Governor Walz and Democrats passed unaffordable spending and tax increases along with unfunded mandates on the promise it would make life more affordable,” state Republican Sen. Andrew Lang, who serves as the Lead on the Senate State and Local Government Committee, said in a statement. “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.

“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.”

Fox News Digital has reached out to Walz’s office. 

The mayors noted that a state statute requires a balanced budget but that relying on one-time surplus dollars has created structural strain. 

“Our state owes it to our citizens to practice responsible fiscal management and to stop taxing our families, seniors, and businesses out of Minnesota,” they said. “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.”