Montcalm County to borrow $2.6M to balance budget

Posted at 11:35 AM, Oct 25, 2016
and last updated 2016-10-25 11:35:19-04

MONTCALM COUNTY, Mich. — Commissioners approved a resolution Monday to borrow $2.6 million from the county’s delinquent tax revolving fund to go toward paying down the county’s general fund budget deficit.

The county, which has been operating at a loss since 2008, must address a $1.5 million budget deficit. Since at least 2012,spending has exceeded annual revenue by $2 million or more, draining nearly $9 million from the county coffers in just four years to balance the budget.

Commissioners approved a budget in September that called forcutting roughly 20 county employees from the payroll. The new budget will save roughly $330,000 annually.

Earlier this month, the state of Michigan also began withholding 25 percent of revenue sharing from Montcalm County because the county was late in submitting a deficit elimination plan.

The county plans to submit a deficit elimination plan to the state for approval now that the borrowing resolution has been approved, Patrick Carr, chairman of the board of commissioners, told FOX 17.