Minneapolis Mayor Proposes 2025 Budget with Tax Increase

Minneapolis Mayor Jacob Frey has introduced a nearly $1.9 billion budget proposal that includes substantial tax increases for residents. The plan, unveiled on Wednesday, outlines an 8.1% tax levy increase for 2025, followed by a 9.8% hike in 2026. Frey emphasized the necessity of these increases to support city employees who provide essential services, stating, "They also feed their families, they pay for daycare and they, like everyone, they have medical bills." The budget reflects the city's commitment to public safety and employee compensation, with recent contracts resulting in nearly 30% pay raises for public works employees and 20% for police officers. Frey has allocated over $26 million for police and public safety reforms mandated after the 2020 murder of George Floyd, which includes the addition of 28 civilian positions and enhancements to the Behavioral Crisis Response team. In addition to public safety, the budget earmarks approximately $30 million for affordable housing initiatives and $10 million for climate and public health projects, such as electric vehicle charging stations. Notably, nearly $200,000 is designated for a pioneering biochar facility aimed at carbon reduction, while funds are also set aside for downtown revitalization and art preservation at George Floyd Square. The proposal has garnered support from LIUNA Local 363, the union representing city employees, which praised the budget for investing in essential services and promoting a high quality of life for all Minneapolis residents.