Budget battle brewing between mayor and outgoing Minneapolis City Council

After the November election, Minneapolis Mayor Jacob Frey called for a “reset” with the City Council after two years of bickering between Frey and the council’s progressive bloc.

So much for all of that.

Before four newly elected members are seated in January, the progressive wing still in control of council for the next month has proposed a series of measures that would, among other things, gut the budget for the mayor’s office by 44% while also adopting several measures they passed that they say the Frey administration has refused to implement.

Many of the proposals are unlikely to make it into the city’s final budget, but the wish list offers a view of council’s priorities — and of some progressive members’ desire to deliver a parting shot to a mayor who just won a third term over their preferred candidate.

Some of the proposals would also pit some council members’ priorities against others’. Among other things, the proposed amendments include $700,000 to build eight public restrooms downtown; $815,000 to start a task force on nonfatal shootings similar a successful program in St. Paul; $616,000 to create an office to prevent waste, fraud and abuse; and $595,000 to plow the city’s busiest sidewalks.

Frey has proposed a $2 billion budget, and the council will begin debating amendments to that proposal next week, a process that often involves negotiations with the mayor’s office. The council is scheduled to take a final vote on the budget on Dec. 9. After that, the mayor has five days to act on their revised budget. If he vetoes it, the council could try to override him.

Last year, the council held three days of marathon budget meetings where they took up a record 78 amendments to the mayor’s proposed $1.9 billion budget. In a historic move, Frey vetoed the resulting budget, but the council overrode his veto.

This year, Frey’s proposed budget would require a 7.8% increase in the city’s property tax levy. Just to maintain current spending, the levy would have to go up by about 13%, city officials say. So Frey’s budget proposal focuses on finding ways to reduce some spending to accommodate increases, such as employee raises, elsewhere.

The mayor has proposed to end “double time” overtime pay for Minneapolis police; eliminate 26 vacant positions throughout city government; and shift funding from an emergency housing voucher program the City Council approved last year to the Stable Homes Stable Schools housing assistance program.

Frey also proposes reducing his office budget by nearly $23,000, but some council members want to cut much deeper to help fund their initiatives. Taken together, several of their amendments would mean about $1.2 million in cuts to Frey’s budget of $2.7 million. That would require firing most of his 15 staffers.

“I’ve seen my share of mean-spirited actions, but this one takes the cake,” Frey said in a statement.

“Voters made it clear they want us working together for the betterment of Minneapolis,” he said. “Forcing me to fire my staff as the first order of business is not starting off on the right foot.”

Council Member Linea Palmisano said she’s been told there are 45 budget amendments, but she hasn’t seen any of them yet.

“This is unfortunate that my peers/colleagues are not more forthcoming and willing to engage in honest discussion ahead of time,” she said.

Council Vice President and Budget Chair Aisha Chughtai said the proposed amendments are a starting point: Some will get withdrawn or changed.

“This is a tough year with lots and lots of tough choices,” she said. “I think everyone feels the gravity of it. This is a year of prioritization.”

The budget process comes amid a new power dynamic at City Hall. In November, seven progressives (six of them incumbents) won seats on the 13-member City Council, which is enough to hold a majority but short of the nine needed to override the mayor’s veto.

Earlier this month, the four new council members — Pearll Warren, Elizabeth Shaffer, Soren Stevenson and Jamison Whiting — released a statement saying it’s time for a “culture shift” at City Hall. They pledged collaboration and mutual respect and invited the incumbents to join them in a “renewed spirit of partnership.”

As the current council begins budget negotiations, some members are also jockeying for leadership and committee positions for when the new council gets sworn in.

The current council president, Elliott Payne, has announced he will run for the position again, saying he has presided over “the most productive City Council in history.”

Council Member Jamal Osman, who will be the biggest swing vote on the new council, said he’ll support Payne for president and will run for vice president. He said his goal is to build a leadership team grounded in accountability, transparency and service. He thanked the current vice president, Chughtai, for her “service, support and dedication.” Chughtai declined to comment on the VP position.

Meanwhile, Council Member Robin Wonsley announced plans to create and lead a caucus for the four democratic socialists who will be on the incoming council.