98 Minnesota mayors warn state that fraud, mandates and cuts are driving 2026 levy hikes
Ninety‑eight Minnesota mayors sent a joint letter to the governor and legislative leaders warning that “widespread fraud,” unfunded state mandates, cuts and broader fiscal mismanagement are forcing cities into higher 2026 property‑tax levies, constraining public‑safety staffing and delaying infrastructure projects. Preliminary Department of Revenue data and local reports show proposed 2026 levies could rise roughly $948 million statewide (preliminary increases up to about 6.9%, with average city proposals around 8.7% and county proposals up to 8.1%), every county proposing increases (some double‑digit), with truth‑in‑taxation meetings set for Nov.–Dec., final levies due Dec. 29 and final statewide totals released after the February forecast.
📌 Key Facts
- Exactly 98 Minnesota mayors signed and sent a joint letter to St. Paul, the governor and legislative leaders in late December warning that “widespread fraud,” unfunded mandates and rising costs are forcing cities toward higher property‑tax levies, cuts to public‑safety staffing and delays to infrastructure projects.
- The mayors’ letter cites the loss of an $18 billion surplus and a projected $2.9–$3 billion 2028–29 deficit as evidence of inconsistent state fiscal management that is harming municipal budgets.
- Preliminary data put the statewide maximum proposed levy increase at about $948 million (often described as ‘nearly $1 billion’); Department of Revenue preliminary figures show levy increases up to 6.9%, while the mayors cite average proposed 2026 levy hikes of 8.7% for cities and up to 8.1% for counties.
- Every Minnesota county is proposing a levy increase; more than a dozen counties are proposing double‑digit hikes. County and city hotspots include Hennepin County (nearly 8%) and metro cities with large proposed increases such as Otsego (~19%), Arden Hills (~18%), Lino Lakes (~16%), St. Francis (~16%) and Crystal (~15%).
- Local government associations (League of Minnesota Cities, Association of Minnesota Counties) and county officials point to federal funding changes—reduced administrative reimbursements for SNAP and Medicaid, cuts in EMT reimbursements—plus new federal workload mandates, system inefficiencies, and rising labor, materials and insurance costs as major drivers of 2026 levy pressure.
- Procedural and timing context: truth‑in‑taxation public input meetings were scheduled from late November through late December (required for cities over 500 population, counties, school districts and many special taxing districts); final levy decisions must be adopted by Dec. 29 and final 2026 tax statements are to be mailed by March 31, with statewide final totals released after the February revenue forecast.
- Department of Revenue trend data and past practice show certified (final) levies typically come down from preliminary amounts after public input meetings, meaning preliminary proposed increases may be reduced before final certification.
📊 Relevant Data
Minnesota has experienced nearly $1 billion in fraud schemes across various government programs, including over $300 million in the Feeding Our Future child nutrition program scandal.
Fraud in Minnesota: Detailing the nearly $1 billion in schemes — FOX 9
Federal changes will reduce reimbursement for SNAP administrative costs from 50% to 25% starting October 1, 2026, increasing costs for Minnesota counties by an estimated $39 million annually.
Time to rethink human services as Trump administration dumps costs on counties — Minnesota Reformer
Immigration accounted for 94% of Minnesota's net population gains from 2020 to 2024, with over 81,000 new immigrants contributing to population growth.
The economic contributions of New Americans in Minnesota — Minnesota Chamber of Commerce
Hennepin County's crime rate increased from 5,440 incidents per 100,000 people in 2020 to 6,860 in 2022, a 26% rise.
Hennepin County MN crime rate data — Map AI
In 2024, statewide arrests in Minnesota showed Black individuals accounting for 31,163 arrests (27.5% of total), while comprising approximately 7% of the population; White individuals accounted for 57,143 arrests (50.5%), while comprising about 80% of the population.
2024 BCA Uniform Crime Report — Minnesota Bureau of Criminal Apprehension
County leaders in Minnesota highlight unfunded mandates, such as recent state and federal decisions shifting financial responsibility, as key drivers of budget pressures leading to levy increases.
Commissioners: Unfunded mandates, cost shifts are 2026 legislative priorities — Sun Patriot
📰 Source Timeline (7)
Follow how coverage of this story developed over time
- Confirms that exactly 98 Minnesota mayors signed a joint letter to the governor and legislative leaders warning that state fiscal policies are harming cities.
- Emphasizes St. Paul as the addressee in the framing (“warn St. Paul”), underscoring tension with state-level fiscal decisions made at the Capitol that affect municipal budgets.
- Provides additional color on the mayors’ message that state mismanagement and shifting costs are forcing cities toward higher property-tax levies, cuts to public safety staffing, and delays in infrastructure projects.
- Ninety‑eight Minnesota mayors signed and sent a joint letter Monday to state leaders raising alarms about 'widespread fraud,' unfunded mandates and rising costs.
- The mayors argue these pressures are driving higher local property‑tax levies, constraining public safety staffing, and delaying infrastructure investments.
- The letter attacks the loss of an $18 billion surplus and a projected $2.9–$3 billion 2028–29 deficit as evidence of inconsistent fiscal management, and cites average proposed 2026 levy hikes of 8.7% for cities and up to 8.1% for counties.
- Local government groups (League of Minnesota Cities, Association of Minnesota Counties) say federal changes are a key driver of 2026 levy hikes.
- AMC’s Matt Hilgart cites reduced administrative reimbursements for SNAP and Medicaid, plus EMT reimbursement cuts, increasing county costs.
- Counties report new federal workload mandates and system inefficiencies forcing additional staffing.
- League’s Pierre Willette and AMC explain how rising labor, materials, and insurance costs compound pressures.
- Reminder of next steps: Truth-in-Taxation meetings precede final levies due by Dec. 29; individual tax bills may vary with tax-base growth and classification changes.
- Metro city specifics: Otsego (~19%), Arden Hills (~18%), Lino Lakes (~16%), St. Francis (~16%), Crystal (~15%) are among the largest proposed city levy increases.
- County detail: Hennepin County proposes a nearly 8% levy increase.
- Scope update: Every Minnesota county is proposing an increase; more than a dozen counties propose double‑digit hikes.
- New quotes: Hennepin Commissioner Debbie Goettel on stability/sustainability and St. Francis Administrator Kate Thunstrom on rising costs, slow growth, and stormwater charges.
- Preliminary 2026 levy data indicate up to a 6.9% increase, per the Minnesota Department of Revenue.
- Law requires truth-in-taxation meetings for cities over 500 population, counties, school districts, regional library authorities and certain special taxing districts; some small townships/cities may list 'no meeting.'
- Final levy decisions must be made by Dec. 29; final 2026 property tax statements are due to be mailed by March 31.
- Department of Revenue trend data show certified (final) levies typically decrease from preliminary amounts after public input meetings.
- More precise figure on the statewide maximum levy increase: about $948 million (vs. "nearly $1B").
- Minnesota Department of Revenue indicates final 2026 levy totals will be released after the February forecast.
- Public input meetings are slated for late November through late December as part of the truth-in-taxation process.