Benton Harbor Commissioners Reject Transfer of Funds for Operations

City manager's request to use $420,000 in income tax revenue denied, raising concerns about ability to pay workers and bills.

Published on Feb. 3, 2026

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The Benton Harbor City Commission voted down a request from City Manager Alex Little to transfer $420,000 in city income tax revenue to the general fund to cover day-to-day operating expenses like insurance, vehicle payments, and utilities. Several new commissioners expressed a desire for Little to present a more detailed plan rather than making repeated fund transfers, while the mayor warned the decision could lead to issues like unpaid workers and uncollected trash.

Why it matters

Benton Harbor has faced financial challenges in recent years, relying on emergency transfers of income tax revenue to cover general operations. This latest rejection by the new city commission signals a shift in approach and a desire for more transparency and planning around the city's budget.

The details

City Manager Alex Little requested the $420,000 transfer to pay for regular expenses like insurance, vehicle payments, fuel, and utilities, as well as legal fees and water plant work. However, several commissioners, including newcomers Diedre Fields and Shaquille Turner, voted against the transfer, saying Little should present a more detailed plan rather than making repeated fund transfers. Mayor Marcus Muhammad warned the decision could lead to unpaid workers and uncollected trash.

  • The Benton Harbor City Commission voted on the transfer request at their regular meeting on Monday, February 2, 2026.
  • The commission's next meeting is scheduled for February 16, 2026, when Little could potentially bring back the transfer request.

The players

Alex Little

Benton Harbor City Manager who requested the $420,000 transfer from income tax revenue to cover general operating expenses.

Diedre Fields

Benton Harbor City Commissioner who voted against the transfer, saying she wants to see a more detailed plan from the city manager.

Shaquille Turner

Benton Harbor City Commissioner who also voted against the transfer, joining several other newcomers on the commission.

Marcus Muhammad

Mayor of Benton Harbor who warned that the commission's rejection of the transfer could lead to issues like unpaid workers and uncollected trash.

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What they’re saying

“I would like to have some details in regards to what is not such an expense anymore, what are some different ideas and different things we have in place, and not to just wait again and to say all this again when he needs more money.”

— Diedre Fields, Benton Harbor City Commissioner (wsjm.com)

“So now we have workers coming to work tomorrow not knowing when we won't be able to pay them no more. We voted no to pay our workers. And once the trash stops getting picked up, you're going to have a big problem because once S hits the fan, it flies everywhere.”

— Marcus Muhammad, Mayor of Benton Harbor (wsjm.com)

What’s next

The city manager, Alex Little, could bring the transfer request back to the commission at their next meeting on February 16, 2026.

The takeaway

Benton Harbor's new city commission is taking a more scrutinizing approach to the city's finances, signaling a shift away from repeated emergency transfers of income tax revenue to cover general operations. This could lead to difficult decisions and service disruptions if the city cannot find a sustainable solution to its budget challenges.