98 Minnesota Mayors Warn Walz’s Policies Are Bankrupting Their Cities

Nearly 100 Minnesota mayors are sounding the alarm and what they’re warning about should shake every taxpayer in the state.

In a direct letter to Governor Tim Walz and state lawmakers, 98 mayors from across Minnesota slammed the state’s fiscal policies, warning that reckless spending, fraud, and unfunded mandates from St. Paul are draining local budgets, hurting families, and driving residents out of the state.

Their frustration comes as the state’s once-massive $18 billion surplus has evaporated, with Minnesota now facing a projected $2.9 to $3 billion deficit by 2028-29. The mayors didn’t mince words:

“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 reads.

In other words, state leaders spent like there was no tomorrow and now cities are left holding the bill.

Here’s what’s happening on the ground:

• Skyrocketing operational and construction costs are crippling city budgets.

• Unfunded state mandates are forcing cities to consider property tax hikes.

• Families and businesses are leaving the state as affordability collapses.

• Workforce shortages and slowed business investment are worsening economic conditions in both rural and urban areas.

The mayors cite a “growing disconnect” between the legislature’s agenda and the financial realities at the local level. When the state expands programs without providing the funds to pay for them, it’s working Minnesotans, seniors, and small businesses who foot the bill.

These mandates include expanding responsibilities in education, public safety, and human services—but with no stable funding to support them.

Republican lawmakers have been quick to call out the obvious failure.

“Governor Walz and Democrats passed unaffordable spending and tax increases along with unfunded mandates… In reality they just passed down the costs,” said State Senator Andrew Lang, who leads Republicans on the Senate State and Local Government Committee.

Lang noted that county officials had already warned about the fiscal recklessness earlier in the session, and this new letter from nearly 100 mayors only confirms what everyone outside the Capitol bubble already knows: Minnesota’s economic model under Walz is unsustainable.

Let’s put this in context:

• Minnesota’s total tax burden is already one of the highest in the nation, ranked 5th overall according to the Tax Foundation.

• The state ranks 37th in economic outlook, having dropped under Walz’s tenure.

• Population growth has stalled, and net migration is negative, with residents fleeing to lower-tax states like Florida and Texas.

And yet, Walz’s administration continues to push progressive programs funded by one-time surpluses and backed by new taxes, instead of sound, long-term budgeting. The state’s balanced budget requirement is being skirted by gimmicks and short-term cash grabs—leaving local governments to clean up the mess.

“Our state owes it to our citizens to practice responsible fiscal management and to stop taxing our families, seniors, and businesses out of Minnesota,” the mayors stated. “Every dollar you manage belongs not to the Capitol, but to the people of Minnesota.”

It’s a clear warning and if Democrats in St. Paul keep ignoring it, they may soon find themselves facing more than just angry letters.

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