Fraud Scandal Hits Tim Walz, 100 Minnesota Mayors Speak Out

They cited the disappearance of an $18 billion budget surplus and a projected $2.9 billion to $3 billion deficit in the 2028‑29 biennium as evidence of inconsistent fiscal management at the state level.

The letter goes beyond abstract policy critique, pointing directly to the everyday challenges mayors face when city budgets are squeezed.

Rising property taxes, delayed infrastructure work, limits on public safety staffing, and reductions in services are not, in their view, “state problems” alone — they are local realities that community leaders must explain to their constituents.

The Core Issues: Fraud, Mandates, and Budget Shortfalls

Concerns Over Fraud and Overspending

One of the central issues named in the letter is fraud and unchecked spending within certain state programs.

While the exact scope and scale of the fraud continue to be evaluated — and fiercely debated — many mayors see a direct link between these failures and the tightening of local budgets.

Fraud in Medicaid and other social services programs has become a major political and administrative flashpoint in Minnesota.

Continue reading…