Nearly 100 Minnesota Mayors Warn State Fiscal Policies Are Straining Cities

Nearly 100 Minnesota mayors have united to send a formal letter to Governor Tim Walz and state lawmakers warning that current fiscal policies are hurting local governments and residents. The coalition pressed for clearer oversight, better budgeting, and greater accountability from state leadership.

Mayors Sound the Alarm

The group, representing towns large and small, wrote that “fraud, unchecked spending, and inconsistent fiscal management” by the state are reducing cities’ ability to plan, maintain infrastructure, and provide essential services without overburdening taxpayers.

They cited several specific concerns:

• Rising costs and unfunded state mandates that force cities to shoulder more spending.

• Local property taxes rising because of shifting costs from state to local budgets.

• A shrinking budget surplus and a projected deficit in coming years that could make budgeting even tougher.

Impact on Communities

Mayors emphasized that real communities are feeling the strain. They pointed to delayed infrastructure, staffing challenges, and limited funding for services residents rely on daily. Many underscored that rising levies and cost responsibilities now fall more heavily on homeowners, seniors, and small businesses.

They also argued that state policies affecting fraud control in social‑services programs have broader fiscal consequences, even though the actual scope of fraud is still being investigated and not fully quantified by any official audit or court finding.

Call for Action

The mayors urged the governor and lawmakers to adopt transparent audits, stronger oversight, and responsible budgeting practices. They clarified that their concerns stem from fiscal responsibility for local budgets, not partisan politics.

State and Federal Context

The letter arrives amid ongoing federal and state scrutiny of fraud in several public programs, including Medicaid and SNAP. Federal prosecutors and state officials are still investigating how extensive abuse may have been, and Minnesota’s governor has acknowledged the issue as serious, while disputing that losses have reached the highest estimates cited by some critics.

Governor Walz has said his administration is working to strengthen fraud detection and support audit efforts, and that speculation about billions in fraud lacks definitive evidence at this time.