Elizabeth Shaffer- Minneapolis is at a fiscal crossroads
Elizabeth Shaffer- Minneapolis is at a fiscal crossroads
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Elizabeth Shaffer- Minneapolis is at a fiscal crossroads

🕒︎ 2025-10-30

Copyright startribune

Elizabeth Shaffer- Minneapolis is at a fiscal crossroads

Opinion editor’s note: Strib Voices publishes a mix of guest commentaries online and in print each day. To contribute, click here. I didn’t realize Patricia was now 102 years old when I knocked on her door a few weeks ago. I hadn’t seen her in our local park for several years, but she was as healthy as ever. Patricia’s husband helped my father get a small-business loan in central Minnesota in the 1970s. We shared a laugh at seeing one another, and I thanked her again for the impact her family had on mine. Seeing her reminded me of times of flourishing expansion in our communities that are not as prevalent today. When does the affordability of our city and state reach the tipping point where it just doesn’t make financial sense to commit? Right behind public safety, I hear frustration from residents and small businesses about the high cost of living and the challenges of investing in our great city in comparison to the benefits received. By any cost-benefit analysis, Minneapolis is struggling. Municipal property taxes have increased from $300 million to $500 million in the last 10 years, a 66% increase, disproportionally affecting homeowners and renters. In Ward 7, the average property tax increase was 13% last year, with one resident telling me of a 19% increase. In addition, many businesses and commercial property owners face increased costs for private security as well as financial pressures from recent changes in state policy. Minneapolis residents are typically willing to pay their fair share to make things better for all. Yet increasingly, I hear residents questioning whether the benefits received are worth the cost. Yes, we have a great park system, vibrant entertainment and the mighty Mississippi. But Minneapolis is also struggling with the basics, public safety being of particular note, along with a public school system embroiled in years of turmoil. Even with some recent improvements, our core city services are still below historic norms. This is not to demean the Minneapolis Police Department or the Minneapolis Public Schools for the situation they’re in; I am a former educator and have a son who serves Minneapolis as a first responder. These are just the simple facts that residents and small businesses grapple with every day. For growing young families, does the amount I pay in property taxes warrant staying in Minneapolis? For small restaurant owners, do profit margins of 2-3% make it worth the effort? The city budget plays a substantial role in this crisis of affordability and will continue to do so without real structural change. Currently, we are heavily dependent on property taxes and outside aid (federal, state, county) for approximately 70% of our revenue. Unfortunately, we’re facing serious headwinds in both categories: significant federal and state cuts, falling commercial valuations, and continued inflationary pressure. This will make it difficult to consider new important spending initiatives, such as new technology to help streamline efficiency for city staff.

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