State’s pension funding is only a temporary fix
Last week, the city received some exciting news.
It is very likely that Hamtramck will qualify for and receive about, $17.6 million to shore up its underfunded pension fund.
That obligation has been taking off about $5 million a year off of the city’s general budget – a huge chunk of change.
The state’s financial gift will give city officials some breathing room to plug other financial holes in the budget. But it would be wise for the city to continue carving out money in the budget for the pension, because $17.6 million will be gone in a flash.
Unfortunately, there is only so much city officials can do. There are a lot of financial obligations for the city, and quite frankly, Hamtramck is underwater, and burning through its budget surplus.
This looming financial meltdown is something that the city council needs to keep in mind when considering a permanent city manager. Hamtramck has time to sort things out — but not much.
Posted July 22, 2022
One Response to State’s pension funding is only a temporary fix
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Richard
July 24, 2022 at 1:33 am
This is a huge thing for Hamtramck. It’s going to help the city continue to provide a high level of service for police and fire. It’s a gigantic boost to the city and frees up a ton of money in the general fund. The Snyder republican super majority stole money from us….. Big gretch is sending it back. Next budget year there’s another 8 BILLION up for grabs….. Hopefully Hamtramck is in line for some of that.