Minneapolis police budget draws scrutiny over overtime and accountability
Minneapolis police officials acknowledged Monday that overtime spending was poorly managed as City Council members questioned why taxpayers should provide millions more to a department that has repeatedly blown through its budget.
The scrutiny comes as Mayor Jacob Frey proposes increasing the Minneapolis Police Department’s 2027 budget by about $20 million, including $13.1 million for overtime, while asking taxpayers to absorb an 11.3% increase in the city’s property tax levy.
The Minneapolis Board of Estimate and Taxation warned last week in a letter about a “pattern of unsustainable and unaccountable spending within the MPD” and a potential “failure of sound budget management and oversight.”
The letter called for an audit and greater coordination between the mayor and City Council over police finances.
During Monday’s Budget Committee meeting, Interim Police Chief Bill Peterson acknowledged the department's financial problems.
Peterson said he inherited “frankly, a mess” when he took over the department in June. The department had significant turnover in its leadership, including the loss of its finance director. Peterson told council members that the department is implementing additional controls.
“The residents of this city, the council, have my commitment that we will do everything possible to not go over budget,” Peterson said. He said MPD is putting “checks and balances” in place and monitoring spending more closely.
MPD spent nearly $33 million on overtime in 2025. This year, it has already spent about $17 million, far above the $2.3 million allocated for overtime in the 2026 budget. The department has 643 sworn officers, compared with the 731 officers required by the city charter.
Assistant Chief Mark Klukow acknowledged that overtime had been too loosely controlled.
“If overtime were a paint bucket, we gave out too many brushes,” Klukow said, explaining that too many people previously had authority to approve overtime. The department has since reduced the number of overtime approvers and begun reviewing spending weekly.
Council Vice President Jamal Osman said the spending cannot be separated from the responsibility MPD has to taxpayers.
“We can’t let this kind of overspending take money away from the programs our communities need. The administration must take responsibility and be honest about how Minneapolis residents’ tax dollars are being used,” said Osman.
Frey has defended the overtime expenditures, arguing that staffing shortages and extraordinary public-safety demands have made the spending necessary.
In response to the BET letter, Frey said he understood the concerns but stood by the city's decisions. He said he would make the same staffing decisions again if confronted with circumstances such as the Annunciation shooting or Operation Metro Surge.
The financial questions come as MPD continues operating under a consent decree stemming from the Minnesota Department of Human Rights' finding that the city and department engaged in a pattern or practice of race discrimination.
Residents will have three opportunities to weigh in before the 2027 budget is finalized. The Budget Committee will hold hearings on Oct. 7 and Oct. 19 and a final public hearing will be held on Dec. 15 during a full City Council meeting.
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