The City of Grand Rapids’ Fiscal Year 2027 proposed budget is projected to be $50 million higher than the previous year’s budget.
At an April 28 committee of the whole meeting, Grand Rapids City Manager Mark Washington presented a $785.4 million preliminary budget for fiscal year 2027—a $50 million, or 6.4%, increase over the current year’s $735 million plan.
The growth comes largely from a 5% rise in personnel costs—pushing the citywide total to $236.5 million—along with inflation and capital spending, even as federal aid for assistance programs continues to shrink.
While city leaders describe the larger budget plan as one of “discipline” and “continuity,” the $50 million spending jump—driven more by staff costs and economic development subsidies than by infrastructure or public safety gains—suggests priorities lean toward expansion initiatives.
“We are in a very, very good financial position,” Washington insisted, especially given “national and international economic uncertainty.”
According to the city’s Preliminary Fiscal Plan for 2027, the proposed budget will feature the addition of 14 new positions across non-General Fund departments, which will be concentrated in the Environmental Services, Water, Mobile GR, Parks, and Engineering departments.
In a public announcement, officials claimed that the increase was driven by “inflation and market conditions,” though most economists pin the 12-month inflation rate at approximately 2.5% to 3%. Moreover, the City of Grand Rapids’ total population has remained virtually flat over the past year.
Many city-wide fees are also scheduled to increase—some well beyond inflation. The highest percentage increases include daily parking fees, particularly in some downtown areas, and building demolition permits.
During the meeting, Commissioner Marshall Kilgore said that he would like to “hear the rationale” behind the elevation of city fees beyond the built-in cost of living raise.
“Our neighbors and constituents—their salaries are starting to stall,” he said.
The General Fund—which contains government functions funded entirely by tax dollars—is projected at roughly $207 million, a 5% jump from fiscal year 2026. Though officials proposed a 1.2% reduction in the property tax millage rate, rising property values mean the typical homeowner will still see an increase of about $51 each in their tax bill.
Another notable area is a $56.6 million line item labeled “Economic Prosperity and Affordability.” Of that, $36.8 million flows to corridor improvement districts and special authorities—funds that function as subsidies for business corridors and downtown redevelopment projects favored by developers and city planners.
Commissioner Milinda Ysasi concluded the meeting by emphasizing the need for the city to allocate resources to educate the people of Grand Rapids in a new media environment.
“Some of us have talked about the sort of increased ‘news’ sources—I’m using news in quotations—out in our community,” Ysasi said, though she added that “everybody’s entitled to their opinion.”
Still, she added, “I think there’s a lot of miscommunication happening right now in our community. And it’s no surprise; there’s elections going on.”
Write to jacob@grherald.com.