Please ensure Javascript is enabled for purposes of website accessibility
Recent News
Home / Business / Economy / Report: Minnesota cities seeing red
Minnesota's cities are rapidly going broke. If no changes are made in spending or revenue collections, cities of all sizes across the state will be running deficits by 2015, according to a new report commissioned by the Minnesota League of Cities. A decade after that, cities will see revenues run, on average, 35 percent short of spending needs.

Report: Minnesota cities seeing red

Jim Miller

Minnesota’s cities are rapidly going broke. If no changes are made in spending or revenue collections, cities of all sizes across the state will be running deficits by 2015, according to a new report commissioned by the Minnesota League of Cities. A decade after that, cities will see revenues run, on average, 35 percent short of spending needs.

The study was conducted by the University of Minnesota’s Hubert H. Humphrey Institute. It scrutinized 11 years worth of data maintained by the Minnesota Department of Revenue and the Office of the State Auditor.

The study found that the average city will be running a deficit of roughly $108,000 in five years. By 2025, that shortfall will have ballooned to $1.8 million.

“We can’t simply cut our way out of the problem, nor can we continue to close the budget gap simply by raising property taxes,” said Jim Miller, executive director of the League of Minnesota Cities, in a statement. “Solving the challenge will take bold and creative thinking among all Minnesotans who have a stake in preserving the quality of life in our communities.”

The League of Minnesota Cities hopes to use the study as a springboard to hold discussions about municipal finances across the state over the next two years. It’s also started a blog, “Outside the Ox,” to solicit citizen input on the issue.


Leave a Reply