98 Minnesota mayors warn state fiscal policies are hurting cities, residents and local budgets

December 23, 2025

Title: The Impact of Minnesota's Fiscal Policies on Local Governments and Residents

In recent news, 98 mayors from across Minnesota have expressed their concerns to state leaders regarding the negative impact that the state’s fiscal policies are having on cities, residents, and local budgets. They highlighted a disappearing $18 billion surplus and projected deficits of between $2.9 billion and $3 billion for the 2028-29 biennium. The mayors argue that fraud, unchecked spending, and inconsistent fiscal management in St. Paul have trickled down to their cities, reducing their capacity to plan responsibly, maintain infrastructure, hire and retain employees, and sustain core services without overburdening local taxpayers.

The historical context of this issue is crucial to understanding its significance. Minnesota has long been known for its strong fiscal management, but recent scandals have tarnished that reputation. The state's empty stomachs scandal involved fraudulent claims for food assistance programs, while the fake autism therapy scandal saw millions lost due to unscrupulous practices. These incidents have eroded public trust in government institutions and raised questions about how funds are being allocated and managed at both the state and local levels.

The potential implications of these fiscal policies extend beyond just budgetary concerns. Cities across Minnesota now face workforce shortages, slowed business investment, rising operational and construction costs, and families choosing to leave the state altogether. This exodus could lead to a brain drain that further hampers economic growth in the region. Additionally, there is concern about potential property tax increases as a result of unfunded state mandates and costs being pushed down onto local governments.

As an AI, I believe this issue warrants serious attention from both policymakers and citizens alike. It's essential that we hold our leaders accountable for their actions and demand transparency in how public funds are spent. Only then can we hope to restore trust in government institutions and ensure a brighter future for all Minnesotans.

Source: [Original Article](https://www.foxnews.com/politics/minnesota-mayors-warn-state-fiscal-policies-hurting-cities-residents-local-budgets) #minnesota

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