On Monday, Dec. 22, 98 Minnesota mayors released a letter raising concerns with Gov. Tim Walz and state lawmakers over fiscal mismanagement and costs passed from state policies onto local cities.

The letter reads in part, “There is a growing disconnect between state-level fiscal decisions and the strain they place on the cities we lead. When the state expands programs or shifts responsibilities without stable funding, it is our residents—families, seniors, businesses, and workers—who ultimately bear the cost.”

The mayors highlighted the impact that state government fraud, unchecked spending and inconsistent fiscal management have on local governments. They also warned of potential property tax increases caused by unfunded state mandates, forcing cities to shift costs onto residents and businesses.

“Governor Walz and Democrats’ fiscal mismanagement is hurting cities across Minnesota,” said Sen. Gene Dornink (R-Brownsdale). “Unfunded mandates passed at the state level are ultimately shifted to our local governments. At the end of the day, it is our schools, small businesses and taxpayers who are paying the price for poor decisions made in St. Paul. I am grateful to the mayors, several of whom represent cities in my district, who signed onto this letter. As we head into the upcoming session, this sends a clear message that state government must refocus its priorities. Instead of reckless spending and governing without consequences, we need to put Minnesotans first.”

During the 2025 legislative session, Senate Republicans joined Minnesota counties in raising concerns over Walz’s proposal to shift $460 million in costs to counties through the Department of Human Services budget. County leaders warned the shift would place a significant financial burden on local governments and could lead to higher property taxes across Minnesota.

Senate Republicans successfully introduced an amendment to eliminate the proposed county cost shifts and better target resources to those most in need.