BAY CITY, Mich. (Michigan News Source ) – The city of Bay City is another municipality that is facing the “fiscal cliff,” the term generated for life after the federal pandemic funding.

Total revenues for the city jumped from $32.78 million in 2020 to $47.70 million in 2024, a 46% increase over that four-year period, according to budget documents it recently submitted to the state of Michigan’s Treasury Department.

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Bay City’s federal grants went from $741,000 in 2019 to $8.48 million in 2024. That big boost in revenues was due to the American Rescue Plan Act of 2021. The federal government awarded Bay City $31.1 million in pandemic emergency relief money.

Like many cities around the country, Bay City is now facing what financial analysts have called a fiscal cliff – what happens when the federal pandemic money is gone.

The city just released its annual audited budget for 2024 that stated Bay City had already allocated all its federal pandemic money.