Montcalm County to borrow $2.6M to balance budget
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 for cutting 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.