Benzie County faces budget uncertainty after voters reject key tax

Benzie County operations may be at risk after voters last week defeated a 4.95-mill property tax that funds more than 60% of the county's budget. The measure, which would have cost owners of a $200,000 home about $495 a year, lost by a 54% to 46% margin. This marks the second time this year the county has failed to secure the tax, following a narrow loss by 12 votes in August.

Without voter approval, state law requires the county to form a tax allocation board to set property tax rates for the county and its dozen townships without direct voter input. Interim County Administrator Leslie Bilbey noted that Benzie County has never had such a board, calling the situation uncharted territory. The county has yet to announce specific cuts or layoffs, though revenue from the last collection should carry the general fund through the current budget year.

Voters in the county of 18,500 residents, who are older than the state average, also rejected operating taxes for local schools and Almira Township. While statewide voters approved most tax increases last week, local officials attribute the rejections to inflation pressures. The defeated tax had generated about $6.4 million of the county's $10.1 million general fund budget and nearly $1.2 million for the townships.

Read the full story at bridgemi.com.