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Business and Economic News
Jon Collins

Frey outlines $1.8 billion budget for Minneapolis, says city is in 'state of transition'

DOJ Investigation on MPD
“I think it’s pretty clear that we’re in a state of rebound, but we’re also in a state of transition, as we roll away from crisis mode and we begin to plan for our future,” Minneapolis Mayor Jacob Frey said. 
Tim Evans for MPR News

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Minneapolis Mayor Jacob Frey outlined on Tuesday his proposed $1.8 billion dollar budget for next year, which includes funding for projects in areas ranging from affordable housing to public safety and climate change. 

It’s the second year in the city’s new two-year budgeting cycle. Frey’s proposed budget includes $10 million for the city’s climate initiative, $18 million for the affordable housing trust and $16 million to cover costs associated with court-enforced agreements with the Minneapolis Police Department. 

Frey asked the City Council to find unity in the budget priorities he outlined.  

“I think it’s pretty clear that we’re in a state of rebound, but we’re also in a state of transition, as we roll away from crisis mode and we begin to plan for our future,” Frey said. 

Estimates by city staff show the spending would result in the expected 6.2 percent increase in the city’s property tax levy, which would result in $27.6 million in property tax revenue. 

One area the mayor is proposing greater investments in is public safety. To enforce the state court-enforced agreement and expected federal consent decree over the Minneapolis police, he estimated that the city will spend $16 million in 2024 and $11 million in 2025, which will fund 34 staff members and 28 civilian positions in the Minneapolis Police Department.  

He’s proposed raising the budget for the city’s Behavioral Crisis Response program by $3 million and violence prevention by $3.3 million. And also proposed to fund 731 sworn police officers, as well as more than $7 million to cover overtime and other law enforcement contracts and an additional $2 million for civilian positions within the Minneapolis Police Department. 

In addition to the boost to the city’s affordable housing trust, Frey is proposing $4 million more in funding for the Minneapolis Public Housing Authority, $2 million for the Minneapolis Homes program and an additional $1 million for homeless shelters. 

”Not only does this budget keep promises, it lays out generational investments in the city we love. It lays out a plan for the future,” Frey said. “Making these investments and standing by them for the long haul will take courage but the ideals set in this budget are more than just courageous, they’re realistic.” 

The budget also includes the following: 

  • $3 million in support for small businesses owned by Black, Indigenous and people of color.

  • $4.7 million to help weatherize Minneapolis homes, which is part of the overall $10 million invested in climate initiatives.

  • $720,000 for planning and development at George Floyd Square at the intersection of 38th Street and Chicago, where Floyd was murdered by a Minneapolis police officer in May 2020. 

  • $2.7 million to repair parkways around the city.  

The Minneapolis City Council will hold budget hearings starting in September and October, with an expected final vote on Dec. 5. 

St. Paul Mayor Melvin Carter unveiled his proposals for St. Paul’s 2024 budget last week, proposing $820.5 million in spending. Carter is proposing that the St. Paul City Council increase the general fund by $16 million, with a property tax increase of 3.7 percent. Both Minneapolis and St. Paul benefit from a boost in Local Government Aid approved by the State Legislature.