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St. Paul leaders are exploring new ways to close a record budget gap without raising taxes
By Ryan Pattee at KSTP 5 Eyewitness News (ABC)
· June 30, 2026
· 2 min read
The city of St. Paul is facing a $26 million budget deficit for 2027. City leaders said they are looking at options beyond raising taxes as they begin discussing solutions.
Factors including inflation and reduced state and federal aid are some of the reasons for the shortfall. St. Paul City Co...
Key takeaway Paul is facing a $26 million budget deficit for 2027.
Why this matters in The Minneapolis
Minneapolis residents should pay close attention to St. Paul's efforts to address its budget deficit, as the two cities often share similar fiscal challenges. The concept of a PILOT program, which St. Paul is considering, could have implications for Minneapolis as well, given the presence of numerous tax-exempt entities, such as universities and hospitals, within the city. If St. Paul's exploratory study and potential implementation of a PILOT program prove successful, it could provide a model for Minneapolis to follow in addressing its own budgetary shortfalls. Additionally, the idea of consolidating services with partners like counties could lead to greater regional cooperation and cost savings, benefiting both St. Paul and Minneapolis. As St. Paul's budget discussions unfold, Minneapolis leaders may be watching closely to see if these innovative approaches could be applied to their own city's fiscal challenges.
About this story
Original reporting by KSTP 5 Eyewitness News (ABC) . The Minneapolis surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KSTP 5 Eyewitness News (ABC) . Have a tip or correction? Contact our newsroom .
Category: local ·
Published: June 30, 2026 ·
Source: KSTP 5 Eyewitness News (ABC) ·
Reading time: 2 min
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Frequently asked about this story
What is this story about? The city of St. Paul is facing a $26 million budget deficit for 2027. City leaders said they are looking at options beyond raising taxes as they begin discussing solutions.
Factors including inflation and reduced state and federal aid are some of the reasons for the shortfall. St. Paul City Co...
When was this published? This article was first published on June 30, 2026 by KSTP 5 Eyewitness News (ABC) and curated for The Minneapolis readers.
Who reported this story? This story was reported by Ryan Pattee at KSTP 5 Eyewitness News (ABC). To learn more about how The Minneapolis selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from The Minneapolis, or browse our daily briefing and topic hubs .
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