Saint Paul, Minn. — Saint Paul Mayor Kaohly Her today delivered her first budget address and released her proposed 2027 budget.
The proposal totals $887.8 million in operating spending, including $438 million for general fund expenses, and a 6.8% levy increase, an estimated $58 annual increase for the median Saint Paul home.
The budget is organized around four priorities, shaped by resident input from four public engagement meetings:
- Making it easier to do business in Saint Paul
- Creating a responsive government
- Enhancing safety and justice in our community
- Prioritizing fiscal responsibility
Department directors presented three scenarios: a 4% reduction, a plan to cover typical unbudgeted expenses that arise during the year, and a fully optimized budget model.
To cover unbudgeted expenses, sustain ongoing initiatives previously supported with one-time funds, and advance long-overdue departmental investments, the Mayor invested $11.8 million and offset it with $11.3 million in savings and reallocations. Revenues were strengthened through a mix of departmental efficiencies, renegotiated agreements, and the 6.8% property tax levy increase.
Closing the projected budget gap using the levy alone would have required an increase of more than 12%.
“I have always been honest with residents that we would not be able to reduce property taxes in the near term,” said Mayor Her. “We can grow the tax base over the next few years so the cost of providing essential services is shared more broadly. Without the changes we made, Saint Paul would have faced a levy increase of more than 12 percent. Limiting that increase to 6.8 percent was the most responsible outcome we could achieve while protecting the services residents depend on and laying the groundwork for a stronger financial future.”
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