The city of Benton Harbor enters fiscal year 2025-2026 with a budget that includes a $1.2 million deficit after commissioners on Monday approved the spending plan.

During a lengthy budget hearing, City Manager Alex Little presented the document that shows projected revenues of $9.9 million and expenditures of $11.1 million in the general fund. He’s warned commissioners for months that expenses are too high while revenue too low. Little said the reasons include legal bills related to the city’s water crisis, water system improvements, and declining revenue for the water system.

“We do this budget in a backdrop that has seen several years of deficit that’s a result of our water operation as well as also our cemetery,” Little said.

Little said decisions made by emergency managers years ago have crippled the city’s ability to generate revenue. In particular, he said the number of water customers has gone down drastically and the city no longer generates revenue from the cemetery. Commissioner Ethel Clark Griffin later had something to say about that.

“Now, I know Joe Harris, he’s been gone since 2013,” Clark Griffin said. “Tony Saunders, he’s been gone since 2016. So that’s been nine years, nine years ago. Last year, we didn’t have this issue. Years before, we didn’t have this issue, but nine years we’ve been home rule. How much longer can we blame this on the emergency manager? How many years does it take? This is — no, that doesn’t make sense.”

Commissioner Juanita Henry objected to the budget, saying when your household is short on funds, you cut spending.

Commissioners grilled Little on ways the city could save money, and he said that effort is ongoing. He said finding less expensive services and lowering utility bills are among the options he’s always exploring. Little also said the city is coming off of several years of having federal infusions of funds that have now dried up.

Commissioners twice this year have approved emergency transfers of income tax money to keep the city afloat, and Little has indicated that will need to happen again. They approved the budget with objections from Clark Griffin and Henry.