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Minneapolis and St. Paul Propose Large Property Tax Hikes and Service Cuts for 2027

The proposals push higher property levies and job reductions into public hearings that will decide final tax and spending levels.

Overview

  • Minneapolis Mayor Jacob Frey on Wednesday proposed an 11.3% property tax increase in a $2.6 billion 2027 budget that also seeks to cut about 100 city positions and consolidate several departments.
  • Frey’s plan adds $20.5 million to the Minneapolis Police Department budget, including $13.1 million for overtime, while reducing funding for the city’s violence interrupter program by $2.6 million.
  • The Minneapolis Park and Recreation Board says the mayor’s smaller 2.5% parks increase versus its 5.86% request could cost up to 26 jobs and has opened talks on structural changes.
  • St. Paul Mayor Kaohly Her on Thursday unveiled an $888 million proposal that would raise property taxes by 6.8% and include cuts such as library hour reductions and supervisory staff reductions.
  • Both cities will move each mayoral plan into council review and public hearings this fall with final tax and spending votes due by year end as limited state and federal aid narrows options.