The next budget for the city of Benton Harbor anticipates a shortfall that will require dipping into the fund balance. During a budget hearing Monday night, city finance staff told commissioners with some income tax revenue lost as a result of COVID, the creation of a new Economic and Community Development Department, and increased health insurance expenses, they’re looking at a deficit budget. Mayor Marcus Muhammad said given the last year, he thinks the city is still doing OK.
“I think that we are not where we want to be, and I’m speaking for myself, but we are moving in the direction and we have some help to balance things out,” Muhammad said.
Federal ARPA dollars could compensate for some or all of the shortfall. However, Commissioner Sharon Henderson didn’t want a deficit budget.
“Even though we got the ARPA money — that’s great — but that’s not a Get Out of Jail Free Card for overspending,” Henderson said.
Henderson said she wouldn’t vote for a deficit budget. The 2021-2022 spending plan anticipates about $670,000 more in spending than in revenues. The fund balance, or the city’s savings, is more than $4 million.
