Mayor Jacob Frey vetoes 2025 budget approved by Minneapolis City Council

Minneapolis Mayor Jacob Frey announced Wednesday afternoon that he is vetoing the 2025 budget approved by the city council late Tuesday night.

Frey said he will approve the property tax levy, an increase of just under 7 percent.

But as for how that tax money is spent — Frey criticized the budget passed by the council, saying in a statement that dozens of amendments “would add $6.53 million in new cash spending, undermining the city’s financial health by depleting critical cash reserves and diverting funds away from core services to fund new, unvetted, ward-specific projects.”

“The council’s budget increases property taxes for years to come,” Frey said. “It cuts essentials like unsheltered homelessness response and recruitment of police, then turns around and uses the money to fund pet projects.”

But several council members quickly fired back against his claims, arguing he was making the fiscally irresponsible moves.

Council member Emily Koski, who is running for mayor, issued a statement saying “it was he who proposed the highest property tax levy in over a decade.” She said the council cut $7 million in expenses and revenues. Council Vice President Aisha Chughtai, who chairs the budget committee, said in her own statement that Frey’s budget “focused on increasing unnecessary bureaucracy, costing taxpayers tens of millions of dollars.”

The budget had passed the council Tuesday with enough votes to override a veto — a vote that could happen when the City Council meets again on Thursday morning.

Council members who supported the amended budget said it directly addressed unmet needs of Minneapolis residents.

“The fact that the mayor is willing to risk the jobs of over 4,000 city employees and the reduction of basic city services in order to try and score political points is absolutely disheartening,” Council President Elliott Payne said in a statement following Frey’s veto announcement. He added the amendments accounted for “less than 2 percent of the total $1.88 billion city budget.”

“The final budget was passed with 10 votes (Tuesday) night and 62 amendments passed with at least supermajority support. I will do everything in my power to work with my colleagues to overturn this reckless veto.”

The $1.88 billion budget passed by the council on Tuesday included more than 70 amendments to Frey’s proposed budget — a process that began last week. 

It includes a property tax levy increase of just below 7 percent, which is lower than the 8.1 percent increase proposed by the mayor. 

The council found savings in part through delaying the implementation of technology programming and reallocating raises for some of the city’s highest-paid employees.

However, for some taxpayers, the levy that passed is still too high. Minneapolis resident Jeff Williams was one of about three dozen people who spoke at the final truth-in-taxation hearing held before the council voted on the budget Tuesday evening.  

“My wife and I are retired,” Williams said. “We’re working very hard to make our home such that we can age in place. But clearly the message is the city does not want us in this city.”

Williams said he wanted the council to make more cuts to programs he sees as unnecessary.

Council members made changes to the budget to redirect funds for nearly a dozen public safety initiatives — including shifting money within the police department budget to pay for five civilian investigators. The council also moved the city’s Behavioral Crisis Unit budget to the Fire Department.

A few amendments — including one to help senior residents access transportation — took funds from the police department’s horse mounted patrol often used for crowd control. 

Council member LaTrisha Vetaw opposed cutting funds to the patrol and voiced her support for the horses.

“Haven, Maximillion, Buster, Blue, Trooper, Teak, Goliath, Rooster and Cabo are the names of some of our horses,” said Vetaw. “I don’t know that’s all of them (but) I cannot vote against them. I’ve met a lot of them personally.”

A few council members giggled while Vetaw announced the names of the horses.

Previous council budgets also cut funds but didn’t manage to end horseback patrols.

The amended budget also included funding for public health approaches to address homelessness, environmental protections, support for workers and funding for services for immigrant residents. 

Council member Linea Palmisano frequently objected to how her colleagues proposed to pay for some of the initiatives and pilot programs. She warned the use of one-time funds will lead to future budget problems.  

“All of us here on this dais know that another large levy is expected, and with all of the one-time spending and pilot programs, so many pilot programs that will no doubt be before this body again next year with a fresh batch of amendments, I really fear our budget will balloon even further," she said. 

The amended budget passed by a 10-3 vote, with council members Palmisano, Vetaw and Rainville voting no. Nine votes are needed to override a mayoral veto.

Some city residents welcomed the council’s addition of funding for programs designed to address issues like homelessness.

During the truth-in-taxation hearing, south Minneapolis resident Mary Slobig said she’s worried about people who live outside, particularly a woman she sees in her neighborhood.

“I feel sadness and anger and helplessness as I see her or her stuff, and I wonder, especially like thinking about tonight, if she’s going to make it through another cold Minnesota winter night. I think no one, no one, should have to live so precariously,” she said.

Slobig voiced her support for an amendment directing $50,000 toward researching community-owned social housing as a potential housing policy approach. The council also added $1.6 million for Avivo Village, a community of indoor tiny homes that offers shelter to unhoused people. 

“Council members spent months in consultation with their constituents to develop over 70 adjustments to the mayor’s proposed 2025 budget. After three days of discussion and debate, [the] council has lowered the property tax levy and re-prioritized over $27 million to meet resident needs and priorities,” Payne, the council president, said in a statement issued following the vote.

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