Minneapolis Faces Projected Budget Shortfall for 2027, Property Tax Hikes Possible
Minneapolis is beginning its budget process for 2027, with city officials projecting a budget shortfall of $28-$32 million. This shortfall could lead to a significant property tax increase, potentially around 13%. The Minneapolis Parks and Recreation Board is also seeking…
Minneapolis St. Paul, MN, July 30, 2026 —
Minneapolis city officials are commencing the budget process for 2027, facing a projected budget shortfall estimated between $28 million and $32 million. This significant gap in anticipated revenue could necessitate a substantial increase in property taxes, with projections suggesting a potential rise of approximately 13%.
The Minneapolis Parks and Recreation Board has also put forth its budget request for the upcoming fiscal year. The board is seeking a nearly 6% increase in its budget. This proposed increase is intended to address rising operational costs and to fund planned park expansions.
The city’s budget process involves extensive review and deliberation by council members and relevant departments. The projected shortfall indicates potential challenges in maintaining current service levels or funding new initiatives without additional revenue. Property taxes are a primary source of funding for many municipal services, and a significant increase could impact residents and businesses across the city.
Further details regarding the specific areas contributing to the shortfall and the proposed solutions are expected as the budget process unfolds. The Minneapolis Parks and Recreation Board’s request will also undergo review, with its impact on the overall city budget to be determined.
Story summarized from the original created by Trevor Mitchell on www.minnpost.com, see more information here.
