GRAND RAPIDS, Mich. — The Grand Rapids City Commission has approved this year’s budget review and adoption process. The schedule includes three special City Commission meetings consisting of two budget review workshops and budget adoption session. All meetings will be held remotely, in line with COVID-19 protocols.
The formal FY2022 Preliminary Fiscal Plan process begins April 27 with a 10 a.m. digital meeting of the Committee of the Whole (COW). At COW, City Manager Mark Washington will present his preliminary fiscal plan to the City Commission for consideration and review.
Washington said that as the City crafts its budget for the next fiscal year, which begins July 1, it knows that COVID-19 is having a major financial impact on the City. In response, he anticipates rolling out a "continuation budget" that maintains staffing and services and fully funds existing contractual obligations.
“For our current fiscal year 2021, we are experiencing an income tax shortfall of between $12 and $15 million due to the recession and also due to reduced payments from non-residents who worked from home over the past year during the pandemic lockdown and continue to do so today,” Washington said.
“As we forecast income tax into the future, we expect only slow steady growth which results in a $60 million income tax shortfall over the next three years. We also took a hit to our parking and special event funds as COVID negatively impacted those areas. Thankfully, funding in the Rescue Plan will help make up for the revenue shortfalls encountered over the course of the past year. It will enable us to fund operations at current levels for fiscal year 2022 which would be the same level of service that the public has come to expect and deserve.”
Members of the public will have an opportunity to provide feedback on the budget and potential American Rescue Act federal relief funding during the May 6 Town Hall, May 18 Public Hearing or during any other City Commission meeting prior to budget adoption.
Instruction on how to watch and participate in the virtual meetings listed above can be found here.
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