Nearly 100 Minnesota mayors decry ‘widespread fraud, unfunded state mandates’ in letter to Walz

The federal pressure on Minnesota to crack down on allegedly rampant fraud in social services under the watch of Democratic Gov. Tim Walz has been joined by demands from nearly 100 mayors in the Gopher State.Crosslake Mayor Jackson Purfeerst authored the public letter to Walz and state lawmakers, which he said represents “a rare, unified voice from mayors representing communities of all sizes — metro and Greater Minnesota — who say state-level fiscal decisions are driving higher property tax levies, constraining public safety staffing, and forcing delays to critical infrastructure investments.”
Signed by 98 mayors of towns not generally known outside of Minnesota, the letter laments that an “historic $18 billion surplus disappear[ed] in a single biennium” and taxpayers “now face an updated projected $2.9 billion–$3 billion deficit in the 2028–29 biennium,” decisions that will “ripple outward” to them.
“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.
It said the Minnesota Chamber of Commerce’s recent report on the state’s decline in national economic rankings mirrors what mayors are seeing locally, ranking 33rd in GDP growth and per-capita income growth, 44th in tech job growth and “overall tax competitiveness” and 46th in median household income growth, with a net out-migration of 44,000 residents from 2020 to 2024.
“Preliminary statewide data, on average, for 2026 shows cities may raise levies by up to 8.7%, with counties up to 8.1%,” which “stem directly from state policies, mandates, and cost shifts that leave cities with no choice but to pass these burdens onto homeowners and businesses,” the letter says.
Mayors must choose among raising taxes, cutting services, delaying infrastructure and “stretch[ing] thin city staff even further,” a strain that now extends to police and firefighters, according to the letter.
“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,” the mayors say. “Our state owes it to our citizens to practice responsible fiscal management and to stop taxing our families, seniors, and businesses out of Minnesota.”

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