98 Minnesota mayors warn state fiscal policies are hurting cities, residents and local budgets psss
98 Minnesota mayors warn state fiscal policies are hurting cities, residents and local budgets
A letter to state lawmakers cites fraud, unchecked spending and forcing property tax increases on residents and businesses
A group of 98 Minnesota mayors raised concerns with state leaders in a letter about their state's fiscal policies, saying they have impacted their cities and residents, noting a disappearing $18 billion surplus and a projected $2.9 billion to $3 billion deficit for the 2028-29 biennium.
In a letter to state lawmakers and Gov. Tim Walz, the 98 mayors expressed concern and frustration, said the state was slipping in national economic rankings.
"Fraud, unchecked spending, and inconsistent fiscal management in St. Paul have trickled down to our cities—reducing our capacity to plan responsibly, maintain infrastructure, hire and retain employees, and sustain core services without overburdening local taxpayers," the letter states.
Cities across the state now face workforce shortages, slowed business investment, rising operational and construction costs, and families choosing to leave Minnesota altogether, the letter states.
In addition, the mayors noted potential property tax increases as a result of unfunded state mandates and costs that force cities to shift the burden to residents and businesses.
"There is a growing disconnect between state-level fiscal decisions and the strain they place on the cities we lead, the letter said. "When the state expands programs or shifts responsibilities without stable funding, it is our residents—families, seniors, businesses, and workers—who ultimately bear the cost."
Unfunded mandates include requests for schools, health and human services, and public safety.
Minnesota Republican lawmakers put the blame on Walz and Democrats.
MINNESOTA’S ANTI-FRAUD SPENDING HAS QUIETLY BALLOONED, LEAVING TAXPAYERS TO PAY FOR FAILURE TWICE
Minnesota Gov. Tim Walz speaking at a presser. (Tibrina Hobson/Getty Images)
"Governor Walz and Democrats passed unaffordable spending and tax increases along with unfunded mandates on the promise it would make life more affordable," state Republican Sen. Andrew Lang, who serves as the Lead on the Senate State and Local Government Committee, said in a statement. "In reality they just passed down the costs to local governments, schools, and small businesses, who in turn pass down costs to local taxpayers and consumers.
"Minnesota Counties sounded the alarm early last session about the proposals to shift costs onto their budgets, so I’m not surprised that nearly 100 mayors across the state are raising their own concerns. This letter is a warning that we must reduce state spending, stop the massive fraud plaguing our state, and remove unnecessary mandates to keep life affordable for everyone."
Fox News Digital has reached out to Walz's office.
The mayors noted that a state statute requires a balanced budget but that relying on one-time surplus dollars has created structural strain.
"Our state owes it to our citizens to practice responsible fiscal management and to stop taxing our families, seniors, and businesses out of Minnesota," they said. "We urge the Legislature to course-correct and to remember that every dollar you manage belongs not to the Capitol, but to the people of Minnesota."
Gov. Walz questions $9B Medicaid fraud estimate, says he’ll take accountability
Gov. Tim Walz said he would take accountability for fraud in Minnesota’s Medicaid programs and would work to fix it, but took issue with estimates gauging the total lost to improper payments at around $9 billion.
The comments came on Friday, a day after federal prosecutors announced a slate of additional charges tied to alleged widespread fraud in Minnesota’s Medicaid programs and suggested that at least half of the $18 billion spent in Minnesota since 2018 in 14 Medicaid programs viewed as high risk for abuse had been obtained by fraudulent means.
“It's speculating,” Walz said following a news conference on an unrelated issue, noting that payments had been cut off for programs and providers suspected of misusing Medicaid funds. “To extrapolate what that number is for sensationalism or to make statements about it, it doesn't really help us. It doesn't get us to where we need. I just need their help to prosecute this.”
Department of Human Services Deputy Commissioner and state Medicaid Director John Connolly said state officials think the amount of Medicaid money obtained through fraud is in the tens of millions of dollars, not billions. He and Department of Human Services Inspector General James Clark said the U.S. Attorney’s Office had not submitted information to the state about potentially fraudulent providers.
“We don't have evidence in hand to suggest that we have $9 billion in fraud in these benefits over the last seven years. And if there is evidence, we need it so that we can stop payment,” Connolly said. “That's a very alarming number. And so if there is evidence, credible allegations of fraud, we need that information to take action.”
Walz, a second-term DFLer, said the state referred cases of suspected fraud to the U.S. Attorney’s office to be prosecuted, and providers were charged as a result.
“What they didn't tell you is we're partners in this,” Walz said. “They didn't tell you because they don't tell us. And it's been very clear that this is being driven from (Washington) D.C.”
Walz said politics, particularly from the White House, had filtered down to discussions about Medicaid fraud in Minnesota. The issue has drawn scrutiny from President Donald Trump and attracted investigations from various federal agencies in recent weeks.
Walz committed to rooting out fraud in government programs and holding people to account.
“This is on my watch. I am accountable for this, and more importantly, I am the one that will fix it,” Walz said. “They're not interested in that, so they throw about these numbers.”
Republicans have blasted the governor for not acting sooner to detect and weed out fraud in the programs. Gubernatorial candidate Chris Madel told WCCO Radio that Walz was “willfully blind” to the issue over the course of his seven years in office.
“How can you possibly claim, with respect to the governor, and frankly, every every one of these commissioners, every one of the high level people there, that they are not aware of a high probability of fraud going on when this has not only happened for the last 10 years, but they themselves are now saying that there's 14 different areas of fraud that are occurring, and then there's indictment after indictment after indictment?”
Madel also faulted Republicans in the Legislature for not doing more to provide oversight over Medicaid programs and said a new House Fraud Prevention and Agency Oversight Committee formed this year hadn’t produced meaningful results.
On social media, U.S. Rep. Tom Emmer said, “Timmy, you are not a victim. 9 BILLION dollars of fraud happened on your watch. Take accountability for once in your life!”
“This investigation has been underway for more than four years and is being handled by career prosecutors and law enforcement agents here in Minnesota,” said First Assistant U.S. Attorney Joseph H. Thompson in a statement to MPR News Friday afternoon. “We will continue to follow the evidence wherever it leads and will remain transparent with the public about the magnitude of the problem. We welcome and appreciate the support of everyone committed to the fight against fraud.”
MPR Correspondent Matt Sepic contributed to this report from Minneapolis.
Longtime House Democrat Passes Away
Longtime House Democrat Passes Away
St. Louis, MO — Missouri Democratic Rep. William Lacy “Bill” Clay Sr., the first Black congressman from the state and a towering figure in American civil rights and politics, died Thursday at the age of 94. Clay, who represented Missouri’s 1st Congressional District from 1969 until his retirement in 2001, leaves behind a legacy that spanned over three decades in the U.S. House and reshaped both St. Louis and the broader political landscape of the nation.
For many, Clay was more than a politician; he was a fighter, an architect of progress, and a bridge between the Civil Rights Movement of the 1960s and the halls of Congress where laws reflecting that struggle were debated and passed. His career was marked by perseverance, vision, and an unwavering commitment to justice.
William Lacy Clay Sr. was born on April 30, 1931, in St. Louis, Missouri, into a city defined as much by its contradictions as its possibilities. St. Louis, with its iconic Gateway Arch and reputation as the “Gateway to the West,” was also a city fractured by redlining, segregation, and entrenched racial inequality. It was within this environment that Clay came of age, sharpening both his sense of justice and his political instincts.
By the age of 28, in 1959, Clay made his first political breakthrough when he was elected to the St. Louis Board of Aldermen, becoming one of the youngest members to serve. His rise came at a pivotal time. Across America, Black communities were mobilizing in the aftermath of the 1954 Brown v. Board of Education decision and the burgeoning Civil Rights Movement. Clay’s early involvement in sit-ins, protests, and labor organizing in St. Louis foreshadowed the lifelong commitment he would carry into Congress.
In a 1998 profile, Clay reflected on the challenges of his youth in segregated St. Louis. “St. Louis was no different from any of the cities in the South,” he said. “We had rigid segregation — not by law, but by custom.” That reality pushed Clay to activism and, ultimately, to political leadership.
Civil Rights Champion in St. Louis
Before reaching Washington, Clay made his mark as a local civil rights advocate. He joined sit-ins against discriminatory businesses, including national chains like White Castle and Howard Johnson, that enforced segregation by dividing Black and white customers into separate areas. Clay was arrested more than once in the pursuit of equality, but he viewed those moments as badges of honor, emblematic of the larger struggle.
As an alderman, Clay confronted entrenched systems of discrimination in housing, policing, and employment. St. Louis, like many Northern cities, practiced a form of segregation just as destructive as Jim Crow laws in the South — exclusionary zoning, discriminatory lending, and systematic underfunding of Black neighborhoods. Clay was among the first in the city’s political establishment to openly challenge those practices.
He also built alliances with organized labor, seeing the power of unions as intertwined with the fight for racial equality. That relationship would remain central throughout his congressional career, helping him push for workers’ rights, minimum wage increases, and improved labor standards.
From Local Leader to National Voice
In 1968, at the height of social upheaval following the assassination of Dr. Martin Luther King Jr., Clay ran for Congress. His campaign tapped into the frustration and determination of St. Louis’ Black community, who were demanding representation equal to their population and influence. He won decisively, becoming Missouri’s first Black member of Congress in 1969.
Clay entered Washington during a time of tremendous change. The Civil Rights Act (1964) and Voting Rights Act (1965) had become law, but the fight for economic justice and equal opportunity was far from over. In Congress, Clay positioned himself as both a legislator and an activist, never shying away from confrontation when necessary.
In 1971, Clay co-founded the Congressional Black Caucus (CBC) alongside 12 other African American lawmakers. The group sought to amplify Black voices within the House, coordinate legislative strategy, and ensure that issues affecting African Americans received national attention. Today, the CBC boasts a record 62 members in the 119th Congress, a testament to Clay’s vision.
Legislative Achievements
Clay’s three decades in Congress were marked by significant legislative accomplishments. He was instrumental in shaping policies around labor rights, family protections, and social justice. Among the most notable:
Family and Medical Leave Act (FMLA): Clay played a key role in advancing the FMLA, which guaranteed millions of American workers the right to take unpaid leave for medical or family reasons without fear of losing their jobs. The landmark legislation, signed into law in 1993, remains a cornerstone of workers’ rights.
Raising the Minimum Wage: Clay was a consistent advocate for raising the federal minimum wage, arguing that economic justice was inseparable from civil rights. His efforts helped pave the way for periodic wage increases, lifting millions of workers out of poverty.
Urban Development in St. Louis: Clay used his influence to channel federal investments into St. Louis, negotiating with corporate leaders and trade unions to ensure that development projects benefited both the city’s skyline and its working-class residents. His work was instrumental in the city’s partial recovery following the exodus of white residents — often called “white flight” — after desegregation.
Civil Service Reform: Clay was also deeply engaged in oversight of federal employment policies, working to protect public employees and ensure fairness in hiring and promotions.
A Political Force — and a Demanding Ally
Clay was known for his political savvy and his ability to wield endorsements as powerful tools. Within Missouri’s Democratic Party, his support could make or break campaigns. Prominent Democrats often sought his blessing, aware that he expected loyalty in return.
“The Black community, almost overwhelmingly, looked at him as a fighter for them,” said his son, former Congressman Lacy Clay Jr., who succeeded him in representing Missouri’s 1st District until 2021.
That reputation as a fighter sometimes meant sharp elbows, but it also solidified his standing as one of the most influential Black lawmakers of his era.
Tributes Pour In
Following news of his passing, tributes poured in from across Missouri and the nation.
St. Louis Mayor Cara Spencer praised Clay’s “courageous legacy of public service to St. Louis and the country,” highlighting his role in historic legislative battles on behalf of the poor and disenfranchised. “Millions have him to thank for the Family and Medical Leave Act and raising the minimum wage,” she said.
Congressman Wesley Bell (D-MO) described Clay as “a giant — not just for St. Louis, not just for Missouri, but for the entirety of our country.” Bell called him a mentor, trailblazer, and friend, adding, “I carry his example with me every time I walk onto the House Floor.”
The Congressional Black Caucus released a statement declaring: “Congressman Bill Clay leaves behind a legacy of dignity, courage, and transformative impact. His work laid the foundation for future generations of Black leadership in public service. May he rest in power and everlasting.”
Michael P. McMillan, president and CEO of the Urban League of Metropolitan St. Louis, said Clay “was a giant in the Congress and a civil rights pioneer who helped transform St. Louis and change the lives of countless people locally and nationally.”
Building the St. Louis Legacy
Clay’s impact on St. Louis is visible in the city’s development. During his tenure, he worked tirelessly to secure federal dollars for infrastructure, housing, and education projects. His ability to “barter with construction trades and corporate C-suites,” as one colleague put it, was central to reshaping St. Louis’ skyline.
The Gateway Arch, the city’s most recognizable landmark, came to symbolize not only westward expansion but also the resilience of a city navigating profound demographic and economic shifts. Clay ensured that Black workers, unions, and small businesses were not left behind in these projects.
Family and Personal Life
Clay married Carol Ann Johnson in 1953, and together they raised a family that became deeply enmeshed in public service. His son, Lacy Clay Jr., carried on his father’s legacy in Congress for two decades, from 2001 until 2021.
Though known for his political toughness, Clay was also remembered by friends and family as warm, witty, and deeply devoted to his community. He often returned to St. Louis to engage directly with residents, attending church services, neighborhood meetings, and civic events.
The Broader Impact
Bill Clay Sr.’s life and career cannot be measured solely by the legislation he authored or the elections he won. His influence extended into the very fabric of American democracy. By co-founding the Congressional Black Caucus, he institutionalized a space for Black lawmakers to speak collectively and strategically. By challenging segregation in St. Louis, he helped pave the way for future generations of Black leadership in the city and state.
For many in Missouri, Clay represented the possibility of a more inclusive democracy. His life demonstrated that progress was not inevitable but earned through persistence, negotiation, and at times confrontation.
Final Reflections
As the nation reflects on Clay’s passing, his story serves as both a reminder of the struggles of the past and a guide for the challenges of the future. In an America still grappling with racial inequality, Clay’s insistence on tying civil rights to economic rights remains strikingly relevant.
His legacy is etched not just in history books but in the daily lives of workers who can take family leave, of citizens who saw their neighborhoods revitalized, and of Black leaders who walk the halls of Congress today because he helped clear the path.
“Bill Clay Sr. was ahead of his time,” one colleague noted. “He didn’t just represent St. Louis — he represented possibility.”
As tributes continue to pour in, one thing is clear: Bill Clay Sr.’s 94 years left an indelible mark on St. Louis, on Missouri, and on the United States of America. His name will endure as a symbol of dignity, courage, and transformation.
