Council Member Warns City Revenues Falling Short of Rising Costs
At a June 16 Budget Committee meeting focused on proposed staff reductions in the Mayor's Recommended 2027 Budget, Vice Chair Shafer pressed for a long-term financial forecast the city has yet to receive.
A Minneapolis council member raised concerns Monday that the city's revenues are not keeping pace with its costs over the coming years, calling the gap "the elephant in the room" during a Budget Committee discussion otherwise centered on proposed full-time-equivalent position reductions in the Mayor's Recommended 2027 Budget.
Vice Chair Shafer said the committee has not yet been presented with a long-term financial forecast covering the next three to five years, even as members weigh decisions that will shape staffing and service levels well beyond 2027.
Increasingly our revenues are not matching up with our costs even as we look to the long-term forecast the next 3 to 5 years. And so I guess it's kind of a little bit the elephant in the room is we're really focused on the 2027 budget and adjacently of the 2028, but there's real concern for me as a council member as I look forward to the upcoming years and see that the savings if we continue in this trajectory will be significantly below our savings.
Shafer noted that revenue growth is projected at roughly 3.5 percent, while cost estimates and levy increase assumptions are, in the council member's view, conservative. "I guess I'm raising the question when I think that's an appropriate educational piece that we're missing in light of these discussions," Shafer said, asking for a dedicated presentation on the multi-year outlook.
Position reductions tied to balancing the budget
The committee's primary agenda item was a presentation on proposed FTE reductions within the Mayor's Recommended 2027 Budget. Officials emphasized that the figures presented represent positions, not necessarily people.
One distinction to keep in mind throughout, the number of positions identified for elimination does not establish the number of employees who will ultimately leave city employment.
Other Topics from This Document
Mayor's Recommended 2027 Budget: Proposed FTE Reductions and HR Process
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