County Proposes $56 Million Budget, Funds LaFranier Expansion Down Payment

Grand Traverse County commissioners are examining a 2026 general fund budget today that the administration describes as balanced and built on conservative revenue and expenditure projections. The proposed budget totals nearly $56 million and reflects strong revenue growth driven by a 7.5 percent increase in taxable value from $7.6 billion to $8.1 billion, producing estimated 2026 tax revenue of $38,427,000.

Significant obligations and capital ambitions define the proposal. The plan includes a $3.9 million bond payment toward pension debt, and an additional $1.4 million payment to the county pension provider in 2026. Those payments constrain fiscal flexibility even as county leaders emphasize capital investment. The administration is proposing a possible down payment of up to $13 million on Project Alpha, a LaFranier campus expansion estimated to cost between $26.2 and $27.6 million. To reach the initial payment, the budget allocates $3 million from the general fund to be combined with other funding sources.

The proposal also signals an institutional shift. County Administrator Nate Alger recommends creating a planning and community development function, staffed initially by two full time employees at an estimated cost of about $300,000. The county has not had a dedicated planning director since John Sych resigned in early 2018. County staff argue that restoring a planning function could provide strategic direction on housing, mobility, and economic development, areas that have implications for long term tax base stability and service demand.

For residents the budget presents trade offs. Rising taxable value has boosted revenues, but larger pension payments and a substantial capital down payment will shape service levels and future levy needs. Decisions made in the coming weeks could affect property tax pressure and the county capacity to address housing and infrastructure challenges.

Commissioners will hold a public hearing and are expected to vote on budget approval on December 17, 2025. Residents seeking to influence the outcome can participate at that hearing, where final allocations and the decision to revive a planning function will be decided.