Dear Neighbors, 

Over the past several months, I’ve heard from many of you who are frustrated by rising property taxes, especially seniors on fixed incomes, young families trying to budget, and small business owners doing their best to stay afloat. 

A major contributor to these increases is automatic inflators built into state funding formulas. These inflators automatically increase spending year after year without requiring a vote or annual review by the Legislature. While they may sound harmless, they quietly put pressure on local governments, drive up costs, and leave taxpayers footing the bill. 

Automatic inflators are policies written into law that tie future budget increases to inflation or other cost indexes. They are often embedded in state funding formulas for schools, counties, and other local entities. While the intention may be to keep up with rising costs, the reality is that these formulas often don’t consider the economic burden they place on families or the current fiscal environment. 

Local governments are forced to absorb these mandated increases, even if their local economies aren’t growing at the same pace. If state funds don’t fully cover the cost (which is often the case), the difference is made up through local property taxes. That means cities, counties, and school districts must either cut essential services or raise taxes to meet the demands of these automatic increases. 

Without regular oversight, automatic inflators create a cycle of unchecked spending and tax increases.  

As a result: 

• Local governments are pressured to raise levies to meet budget demands. 

• Taxpayers see year-over-year increases with little transparency. 

• Property tax hikes disproportionately affect fixed-income residents and working families. 

We must bring greater accountability and flexibility to our budgeting process. That means: 

• Re-evaluating automatic inflators and restoring legislative oversight. 

• Allowing local governments to budget based on real-time needs—not rigid formulas. 

• Prioritizing fiscal responsibility and property tax relief for Minnesotans. 

This is about fairness, transparency, and making sure government works for you. 

On Thursday May 8th, from 10 a.m. - 12 p.m. there will be a rally at the Capitol to protest tax increases. I will be speaking at it, and I encourage anyone who is concerned about tax increases to attend.