Kalamazoo Proposes $328.6M 2027 Budget

City staff presented a proposed 2027 budget that drops spending 4.6% from the current year while prioritizing streets, water, and flood work.

Updated on Nov. 6, 2026 in City Hall

Isometric editorial illustration of an open trench holding a cast-iron water main beside new gray street paving, with a copper pipe rising from the ground.
Kalamazoo city staff proposed a $328.6 million 2027 budget on Monday, cutting spending 4.6% while prioritizing streets, water lines, and flood reduction. AI Illustration. Upload story photo >

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Kalamazoo city staff presented a proposed 2027 budget totaling $328.6 million in expenditures, a decrease of 4.6% from the 2026 adopted budget. The city commission will review the proposal at a committee of the whole meeting next Monday.

Why it matters

The proposal reflects priorities drafted by the city commission at a March retreat, including housing support, youth development, neighborhood investment, operational efficiency and capital investments. For Kalamazoo residents, the budget determines how city funds are allocated across infrastructure and services.

The proposed budget totals $328.6 million, down 4.6% from the 2026 adopted budget, with state revenue sharing reduced by $292,000 compared with fiscal year 2026. The commission has not yet voted, and adoption is expected in December.

The players

Malcolm Hankins

Malcolm Hankins is the city manager of Kalamazoo who joined City Hall in January 2026 and stated that commission and community priorities were incorporated into the budget proposal.

Kalamazoo City Commission

The Kalamazoo City Commission is the elected governing body that drafted budget priorities at its March retreat and will review and vote on the proposed budget.

The details

The proposal slates more than $100 million for streets, wastewater, water systems and flood reduction on the north side. Over 70% of the city's lead water lines have been replaced, and the city aims to replace all lead service lines by 2037.

Timeline

  1. March 2026: City commission retreat drafted budget priorities.

  2. January 2026: Malcolm Hankins joined City Hall as city manager.

  3. Next Monday: Committee of the whole reviews the budget proposal.

  4. December 2026: Expected adoption vote on the budget.

  5. 2037: Target year to replace all lead service lines.

Political Context

The budget's $292,000 cut in state revenue sharing sits alongside an approximately 8% increase in major street revenue support and a 10% increase in local street revenue support from the state. The mix means the city's street investments are receiving more state help even as general revenue sharing shrinks.

Residents will see how the city allocates more than $100 million toward streets, water systems and north side flood reduction. The adopted budget will determine the pace of lead service line replacement toward the 2037 target.

The takeaway

The proposed budget signals that Kalamazoo is prioritizing infrastructure, particularly lead line replacement and flood control, even as state revenue sharing tightens. Watching the December adoption vote will show whether the commission keeps those priorities intact.

What happens next

The city commission will review the proposal at its committee of the whole meeting next Monday, and an adoption vote is expected in December.

Further reading

Follow city budget decisions in the City Hall section for context on how the commission shapes local spending.

Source note: This article includes information reported by WOODTV.

Live Poll

Do you support the city's proposed $328.6 million budget focused on infrastructure and housing?