Mayor Frey presents 2022 budget proposal with focus on recovery

August 13, 2021

Today, Minneapolis Mayor Jacob Frey delivered his 2022 Budget Address from Lucy Laney elementary school, a Stable Homes Stable Schools (SHSS) participating school. Since Frey launched SHSS in 2018 the program has helped prevent homelessness or provided housing for 3,000 children and their families, including over 200 children and siblings at Lucy Laney.

In prepared remarks, Frey outlined his 2022 budget proposal, which includes a sustained commitment to record-setting funding for affordable housing programming, a series of good governance decisions, and new funding for youth programming, community safety, and an inclusive economic recovery. The mayor is taking a disciplined approach to future budgets by dedicating a significant share of American Rescue Plan Act (ARPA) funding to insulate residents from massive property tax hikes in 2022 and beyond.

Frey secured $28 million for affordable housing work in his initial ARPA proposal earlier this year and is continuing to invest in affordable housing through his 2022 budget recommendation with $15 million for the city’s Affordable Housing Trust Fund. Under Frey, the city has built or preserved 3,000 units of affordable rental housing and has significantly increased the pace at which the City is producing new deeply affordable (30% Area Median Income (AMI) or lower) housing, eclipsing the 2011-18 median rate of production of 41 units per year with 273 units in 2020 alone, nearly seven times the previous average rate of production.

Frey’s proposed 2022 budget totals $1.599 billion dollars. The proposal comes with a 5.45 percent levy increase.

The mayor is also proposing a gradual $2.6 million increase for youth programming through the Minneapolis Park and Recreation Board, ongoing funding for the Office of Violence Prevention, and five recruit and cadet classes to bring new, community-oriented officers into the MPD.

The mayor’s budget also includes $120 million in federal relief funding over three years to help with recovery and safeguard against major property tax increases in 2022 and beyond.

“We’ve been intentional, taking a measured and honest approach to budgeting to keep the City on solid ground,” Frey said. 

Frey continued, “We will emerge from the pandemic on the other end, well-prepared to reignite our city and continue the hard work of transformation and change. 

“Minneapolis has demonstrated with unflinching clarity that we are ready to not just think, but to act bigger than we ever have. No matter the challenge, we’ve stayed committed to our core values and to our community.” 

Frey’s budget also includes new investments to improve public safety and safety beyond policing, economic inclusion initiatives aimed at fueling growth specifically in communities of color, climate action, and restoring city employee capacity to ensure delivery of core city services.

Affordable Housing

  • Frey committed $28 million to affordable housing work in his initial ARPA proposal earlier this year.
  • This investment is continued through his 2022 budget recommendation with $15 million for the city’s Affordable Housing Trust Fund.
  • In addition, Frey is proposing a new $1 million, ongoing investment in our partnership with the Minneapolis Public Housing Authority to support new development and preservation initiatives in 2021 and beyond.
  • In support of the city’s Renter’s First policy, Frey’s proposal includes funding for a Community Engagement Specialist, which will increase the city’s renter communications and community engagement work to ensure that renters have full access to the rights provided under the suite of new renter protections passed over the last few years.

Community Safety

  • Investing in accountability from the Minneapolis Police Department is a non-negotiable within Frey’s budget. Proposed investments represent his significant commitment to thorough and strong disciplinary processes including additional City Attorney capacity and a full-time body camera analyst.
  • Based on community input, Frey’s budget funds five Minneapolis Police Department recruit classes needed for both core public safety work and transformative culture change by bringing in the type of community-oriented officers the vast majority of Minneapolis residents want to see in their city.
  • Additional accountability investments include $500,000 for a state-of-the-art early intervention system to ensure supervisors and department leadership have access to real-time data to help inform when an officer may need additional support or are no longer fit to serve.
  • Frey – in partnership with Chief Arradondo – have finalized another series of reforms in ongoing efforts to create a more just and accountable system of community safety. Effective today, Minneapolis Police Officers will no longer be conducting pretextual stops for offenses like expired tabs, an item dangling from a mirror, or an expired license.
  • Public safety spending includes $7.8 million in ongoing funding to the Office of Violence Prevention, in addition to several million through the Rescue Plan funding proposal. Frey’s budget includes major investments in youth recreation and programming and another $500,000 proposal for youth-specific pro-active violence prevention work in this year’s budget.

Economic Inclusion

  • Access is key for creating opportunities for all communities, so Frey’s budget includes a total of $2.6 million in new funding for youth recreation to support programming, supervision, and recreation activities in parks across the city, with a specific focus on neighborhoods that have been traditionally underserved. The Mayor's Budget proposes increasing the budget for this new program in each year of the City’s five-year outlook and the Mayor supports using ARPA funds in the short term to reach the full vision for the Park Boards proposed $2.6 million program.
  • Ongoing funding, along with a major investment of APRA funding, to the Commercial Property Development Fund supports communities of color that have historically and systemically been locked out of the basic ownership opportunities and the ability to build generational wealth.
  • This year’s levy was planned to ensure that the measures we’re taking won’t burden those who have been disproportionately impacted over the last year and a half.

Climate Action

  • Frey is significantly increasing ongoing funding for the Rebuild Resilient program, a proven initiative which provides incentives and support for businesses to invest in renewable energy and energy efficiency options.
  • The City of Minneapolis adopted a social cost of carbon of $42.00 per metric ton and the Frey is proposing to add capacity in the Finance Department to begin operationalization of that climate tool and develop internal expertise to advise City departments on green purchasing.
  • Frey also prioritized funding for the City to update its Climate Action Plan to ensure Minneapolis remains a municipal Climate leader.

Park Board Agreement

  • Frey has worked closely with the Minneapolis Parks and Recreation Board on a comprehensive strategy for youth programming that includes a new $2.6 million investment in youth programming
  • The plan includes:
    • $1.2 million for hiring 12 full-time dedicated professionals to develop programs and engage young people including youth ages 17-22 who have low-level offenses on their records
    • $756,000 for 7 full-time dedicated professionals to program Creation Spaces to allow young people to experience the kind of self-expression, learning and exposure to careers and industry professionals to fully understand the business and careers behind the art, technology, music, science, and innovation
    • $300,000 for expanding hiring for the Teen Teamworks program and green jobs to develop a diverse group of community leaders through deliberate offerings that provide career exploration and pathways to full-time employment
    • $387,000 for hiring 3 full-time dedicated professionals to enhance intergenerational and nature-based community programs.

New Initiatives

  • For the first time in City history, funding within the Attorney’s Office will go to work directly with the State’s newly-created Missing and Murdered Indigenous Relatives Office, a cross-jurisdictional, overdue addition to support for Minneapolis’ Native community.
  • Continuing the work started by the Mayor’s Opioid Taskforce in 2018 in support of neighbors experiencing addiction, Frey’s proposal includes funding for a physical space to house the culturally-competent initiatives led by Health Department is leading and supporting to help break cycles of addiction – somewhere that isn’t an Emergency Room or police station where people are simply welcomed and supported by those with the experience and relationships that matter. 

Learn more about the proposed 2022 budget