GRAND RAPIDS, Mich. — Grand Rapids released its proposed budget for the next fiscal year on Tuesday, which relies on federal aid to backfill some pandemic-related revenue losses, allocates funding to affordable housing and includes more money than last year to the police department.
The $546 million plan is a "continuation budget," City Manager Mark Washington said during the presentation to commissioners.
"We thought that we would have to make additional reductions in funding, but we are so thrilled at the relief efforts that have been approved at the federal level that will allow us to continue to maintain essential city services," Washington said, during the hours-long presentation.
► Watch the full meeting here (the budget discussion begins at about the 29 minute mark). Review the budget here.
The city expects to receive $47 million this fiscal year from the federal American Rescue Plan Act (ARPA), and a total of $94 million over the next two years. The federal funding curbed serious cuts and layoffs, Washington said.
Due to the estimated loss of about $36 million in income tax revenue, which makes up the city's General Fund, the city is relying on federal aid to help offset shortfalls. This year's General Fund is slated to be $155,955,117.
The loss of income tax revenue comes largely as a result of many people working from home throughout the pandemic. Grand Rapids estimates that income tax revenue will not recover to "pre-pandemic" levels until fiscal year 2026.
In the fiscal year 2022 proposed budget, GRPD's budget decreases from 38.5% to 35.8% of the General Fund. However, the actual expenditures increase from $55.1 million to $55.8 million.
Three radio technicians were moved to Dispatch as oppose to GRPD's budget, and three nonsworn positions were reallocated to Housing Development/Lead, Communications, and Neighborhoods.
Sworn staffing levels will be maintained for police.
"We've done that in every department specifically with the sworn personnel in the police department as the police chief says he needs every sworn person to meet his strategic priority," Washington said, continuing on to say Police Chief Eric Payne has made arguments for needing more staff.
Last year, thousands of community members and organizers with the Defund the GRPD coalition sent letters calling on city leaders to reduce the Grand Rapids Police Department's budget down to at least the required 32% of the General Fund, which is the requirement set in the City Charter.
Activists and organizers have said funds should instead be allocated to the communities that are most impacted by policing, systemic racism and violence.
Most of the ARPA funds will backfill the General Fund, but some of it is also slated for the following investments:
- Master Plan funding - $250,000
- Housing Practice Leader contract - $100,000
- Funding for local special events - $300,000
- Homeless Outreach staffing - $1,500,000
The preliminary budget also includes over $25 million for the following investments:
- Regional Consolidated Housing and Community Development Plan investments including increased supply of affordable housing and increased access to and stability of affordable housing - $6.8 million
- Neighborhood of Focus/Third Ward Equity Funding - $2 million (potential ARPA)
- Staff Diversity, Equity and Inclusion Training - $40,800
- Support for the Michigan Indigent Defense Fund - $700,000
- GRow1000 2.0 - $1,200,000
- To College Through College (T2C) Studio - $112,386
- Grand River Equity initiatives - $284,166
- Neighborhood Match Fund - $100,000
- Neighborhood Association support - $562,671
- Lead Service Line Replacements focused in Third Ward Neighborhoods of Focus - $1.74 million
- Office of Oversight and Public Accountability - $408,781
- Thrive Outside - $193,290
- Bill assistance for water, sewer and refuse - $221,200
- Housing lead remediation - $2.2 million
- New Housing Development/Lead Hazard position - $146,940
- DASH Bus operations - $2.4 million
- Neighborhood of Focus based transportation solutions like car share - $200,000
- Cure Violence evidenced based crime reduction program - $100,000
- Violence reduction - $1 million (potential ARPA)
- Additional violence co-response - $1 million (potential ARPA)
Tuesday's presentation was the first of a series of meetings that will take place to review the budget ahead of the May 20 meeting where city commissioners will vote on it.
How to give feedback on the budget
- Tuesday, May 4 at 9 a.m. - virtual meeting
- Budget Review Workshop focused on public safety reform & crime prevention/violence reduction and Third Ward/Neighborhood of Focus Equity Funding
- There will be time for public comment
- Click here to join the meeting
- Tuesday, May 11 at 1 p.m. - virtual meeting
- There will be time for public comment
- Click here to join the meeting
- Thursday, May 6 at 6 p.m. Town Hall with the Mayor and City Manager (on the City’s Facebook page)
- Tuesday, May 18 at 7 p.m. virtual evening City Commission meeting
- There will be time for public comment
The City Commission will vote on the plan during its 9 a.m. meeting Thursday, May 20. The city says info@grcity.us can be used to email in feedback.
The city says all work sessions and meetings will be streamed on Facebook and YouTube and broadcast live on Comcast Channel 26. The meetings will be streamed in Spanish here.
Related video:
►Make it easy to keep up to date with more stories like this. Download the 13 ON YOUR SIDE app now.
Have a news tip? Email news@13onyourside.com, visit our Facebook page or Twitter. Subscribe to our YouTube channel.