Mayor Frey vetoes Minneapolis City Council’s 2025 budget

The budget for the city of Minneapolis is headed to Mayor Jacob Frey’s desk, but he said he will veto a laundry list of amendments that add new spending.

The City Council approved a proposal just before midnight on Tuesday after hours of public testimony and discussion.

The 2025 budget that was approved by City Council was nearly $1.9 billion.

Among several concerns addressed by the council were funding for nonprofits and property taxes.

Frey first proposed a property tax increase as high as 8.3%, which breaks down to around $214 per year for a home of median value. Frey said he would go as low as 6.4% if the City Council cut some of its nearly 80 amendments.

Council members on Tuesday night approved a record 71 amendments, bringing the original proposed tax levy increase down to 6.9% — which Frey said he would approve, while also rejecting the budget.

Less than an hour after members of the City Council’s progressive majority held a press conference touting the passage of a record-breaking number of budget amendments, Frey announced plans to veto it.

Council members, including President Elliott Payne and Vice President/Budget Committee Chair Aisha Chughtai, called their version of the budget “one of the most equitable” and historic investments ever made in city residents, citing a 1.5% reduction in Mayor Frey’s proposed property tax levy and the rearranging of money to pay for new public safety, public health and housing initiatives in areas where they said the need is greatest.

Council leadership said its priorities, including property taxes and homelessness response, came straight from constituents, and they said the administration’s current strategy isn’t getting the job done.

“Tough budget years are about prioritization, and this Council will always have Minneapolis residents’ — especially those who are struggling with most —  backs,” Chughtai said. 

In a separate press conference, Frey again called the Council’s newly funded programs “unvetted.” Members of the administration, including COO Margaret Anderson Kelliher, said the money used to cover the record number of amendments came from a multi-million-dollar reduction in existing city programs and services, like snow plowing, road repairs, police recruitment, other public safety services, and the city’s cash reserves.

Frey said that money would be necessary to offset an expected reduction in federal funding under the incoming Trump administration. In his 11 years participating in the city budget process as mayor and formerly as a City Council member, this was the first time he has not supported a budget at this point in the process, Frey added.

“I know that vetoing a budget is a tremendous step that has not been taken often, or possibly ever, but it’s the right thing to do for this city,” he said.

Once the veto is official, the next step is another vote by the full City Council. 

If members vote to sustain the mayor’s veto, then the city administration would begin work on a third version of the budget. If Council votes to override the veto, then that’s it; the 2025 city budget is finalized.

Council members could take up that vote as soon as Thursday.

Payne responded that he will work with the other councilmembers to override Frey’s veto:

“The fact that the Mayor is willing to veto the entire 2025 City budget because his co-equal branch of government made amendments that accounted for less than 2% of the total $1.88 billion City budget is absurd. Council Members learned of Mayor Frey’s intention to veto through a press release, before he even received the formal budget packet from the Clerk’s office at the time of his announcement. This is unfortunately part of a larger pattern of an unwillingness to work with the Legislative branch of the City. The fact that the Mayor is willing to risk the jobs of over 4,000 City employees and the reduction of basic City services in order to try and score political points is absolutely disheartening. The final budget was passed with 10 votes last night and 62 amendments passed with at least supermajority support. I will do everything in my power to work with my colleagues to overturn this reckless veto.”