County Commissioners Talk Budget, Health Dept Accreditation

Grand Traverse County commissioners took a deep dive into county finances Wednesday, discussing the upcoming 2026 budget as well as a recent audit report that – while clean – flagged reconciliation and reporting issues that need improvement going forward. Also at Wednesday’s meeting, the Grand Traverse County Health Department was recognized for receiving its accreditation – a process that occurs every three years and confirms the department meets state standards for public health services.

Finances
Though Grand Traverse County appears to be in healthy financial shape – with a general fund budget that’s grown from $47.8 million in 2024 to just over $51 million in 2025 to an estimated $55.9 million in 2026 – County Administrator Nate Alger said staff are still recommending a “very conservative” approach to next year’s budget.

Unknown impacts from Michigan’s still-unapproved budget could affect Grand Traverse County, staff told commissioners, from decreased revenue sharing with local governments to reduced or eliminated grants that could affect departments ranging from health to veterans affairs. Finance Director Dean Bott warned grant cuts could potentially impact some employee positions. Alger said the county is keeping some vacant positions unfilled in anticipation of that possibility, which could help avoid having to cut active staff.

The county anticipates allocating almost $3 million toward debt service payments next year. The county also has some major projects on deck, like the expansion of the LaFranier Road campus called Project Alpha. Commissioners are expected to take a deeper dive into Project Alpha finances and building plans in the coming weeks as the board gets closer to authorizing construction. County Director of Parks and Facilities John Chase said that some capital improvement projects budgeted for this year will likely be bumped to 2026 due to timing, including exterior and concrete work at the Historic Courthouse and upgrades to the VASA trailhead park driveway.

Even though Alger said staff are taking a “status quo” approach to the 2026 budget – which commissioners will approve before the end of the year – there’s still flexibility to align funding with commission priorities, he said. Vice Chair TJ Andrews said staffing needs will likely continue rising to keep up with the county’s population growth, citing the finance department as one example where more employees are needed. “This county has just gotten more complex,” she said. 

Technology is another area of potential growth. IT Director Cliff DuPuy advocated for making a “significant investment” in the 2027 budget in artificial intelligence, with the county to potentially “slow walk” some applications out in the coming year and establish a county policy for working with AI. “It’s really critical, I think, that this board get ahead of that,” he said, pointing to the recent deployment of AI in Central Dispatch as the first of a likely wide range of applications that could impact the county.

Commissioners Wednesday also reviewed the county’s 2024 audit results. Bott noted the audit was filed late with the state of Michigan this year. State law requires municipalities to file an audit report within six months of the end of their fiscal year, or June for Grand Traverse County. The county’s audit was filed July 25. Explaining the delay, Alger and Bott said the county had a new auditor this year – who was unfamiliar with the county’s systems, creating difficulties with document requests – as well as a new county treasurer. Jamie Callahan was elected to county treasurer in November in a tight race against incumbent Sarah Gum.

While the audit was clean and contained primarily good news – the county’s net position and revenues have both increased, for instance – it also flagged some needed improvements. Bank reconciliations “were not completed timely or accurately” and should be done within 30 days going forward, the audit stated. The treasurer should also be providing regular reports to commissioners on the status of the county’s investments, according to the audit. Commissioners voted Wednesday to ask Callahan to attend an upcoming meeting to discuss the audit and his role in the process, as well as to figure out a potential schedule for receiving investment reports.

Health Department Accreditation
The Grand Traverse County Health Department (GTCHD) was recognized Wednesday for its achievement in once again being accredited as a local health department. Accreditation happens on a three-year cycle statewide, with standards updated each cycle to ensure health departments are continuously improving and meeting current community needs.

“Accreditation is a process that we take very seriously in local public health,” said GTCHD Interim Health Officer Mike Lahey, calling it a “very labor-intensive process.” Laura de la Rambelje, director of the Division of Local Health Services at the Michigan Department of Health & Human Services, cited GTCHD’s outreach to individuals experiencing homelessness and its Healthy Futures partnership with Munson – which supports expecting parents and families after childbirth – as services that stood out at GTCHD this cycle.

Lahey – previously GTCHD’s deputy health officer – has been serving as interim health officer this summer after Wendy Hirschenberger retired following more than a decade in the role. County commissioners are scheduled to interview three candidates for the health officer position at their September 17 meeting.