Minneapolis Mayor Jacob Frey offered up his 2026 budget address on Wednesday and the mayor is focusing on creating a city that’s “built to last."
Frey's proposed budget addresses what he calls a "challenging fiscal landscape" by making key cuts, and doing it without laying off any staff.
The plan does, however, eliminate 30 non-essential vacant positions, allowing for investments elsewhere in housing, infrastructure, and economic inclusion.
"We saved where we could," said Frey. "Because when you don't know what's coming down the road, the smartest move is to make sure that you're ready."
The biggest change is a shift from double-overtime to time and a half pay for the Minneapolis Police Department, which is expected to save the city millions.
"Having additional officers do overtime was something that has been essential, but look, that was never the long term and permanent fix," Frey explained.
The double-time pay came during a time when the department was far below what the city lays out as minimum staffing numbers. But Frey's budget proposals would put an end to that practice, saying right now there are 614 sworn police officers which is up 53 from the end of 2023.
That numbers is still far below the 889 sworn officers in place in 2019, prior to the COVID-19 pandemic, the city's issues around the death of George Floyd and what Police Chief Brian O'Hara called a rash of retirements.
The $2 billion budget proposal also would require a 7.8% increase in the city’s property tax levy, a number that is not insignificant, amounting to a couple hundred dollars for even a lower-priced Minneapolis home.
Frey says if they didn't find places to cut, however, the increase just to maintain current spending would be closer to 13%.
"This is not an austerity budget," Frey said Wednesday. "This is a recalibration. An investment in the fundamentals that make Minneapolis strong."
The city continues to struggle with a downtown full of buildings losing their value as "work-from-home" and changes in how businesses operate continue to impact Minneapolis' coffers.
The City Council will also get their say in the budgeting process and it comes after a heated 2024 where Frey vetoed the council's budget, a first in Minneapolis' history. The council had the votes to override the mayor's veto in 2024 which added $6.5 million in new cash spending.
Frey and the council must agree on a budget by the end of the year.