Grand Traverse commissioners ask how to remove an elected official as the treasurer again comes up short on records

TRAVERSE CITY, Mich. — Grand Traverse County commissioners have asked their lawyer to spell out how the board could remove an elected official, as frustration builds over County Treasurer Jamie Callahan’s handling of missed federal tax payments and months of unbalanced accounts.

Callahan gave the board another required report under oath Wednesday. He did not bring the missing pages of IRS penalty notices commissioners had ordered him to produce and said they still had not been found, 9&10 News and The Ticker reported. The board voted to have him appear under oath again at its Oct. 21 meeting.

The county missed several payroll tax payments in past quarters, and outstanding penalties total nearly $140,000, The Ticker reported. Asked Wednesday how much the county had paid the IRS, Callahan said he thought it was $84,000 and that he did not have a breakdown of penalties, fees and interest, according to 9&10 News.

In his written report, Callahan said the notices arrived in February, while his office was temporarily relocated during building renovations, and that the originals were probably misplaced when it moved back. He wrote that IRS officials told him the agency keeps no copies of the computer-generated notices.

The report also listed 1,702 unreconciled items, totaling about $5.2 million, in county accounts as of Sept. 27. About 975 were more than 30 days old. Callahan told commissioners the count had dropped to 1,136 by Monday, and he aims to have July and earlier months reconciled by the end of October.

To help, the county brought in the WoodHill Group, a municipal finance consulting firm, at an estimated $50,000 for a year of work. Because the treasurer’s budget can’t absorb the cost, it will come out of the general fund. County Administrator Nate Alger had the firm start under his own spending authority before a final contract was signed, citing the urgency.

That drew sharp words from Commissioner Ashlea Walter. “It’s astounding to me that we’re paying this money out of the general fund to support an elected official’s work because he doesn’t have the skills yet to know what’s going on,” she said, as quoted by The Ticker.

Commissioners also met in closed session on an attorney’s memo about a performance bond that could shield the county from liability tied to the treasurer’s office. Vice Chair TJ Andrews told The Ticker she has lost confidence in Callahan. Removing an elected official in Michigan generally takes a recall or action by the governor, she said, and the legal opinion is meant to lay out when the board could act.

Callahan told The Ticker by email that asking counsel about removal is “the board’s prerogative,” adding that it “does not deter my resolve to serve the people of Grand Traverse County.”

Sources:
9&10 News, “Grand Traverse commissioners draft removal process as treasurer misses records deadline,” Oct. 7, 2026, https://www.9and10news.com/2026/10/07/grand-traverse-commissioners-draft-removal-process-as-treasurer-misses-records-deadline/
The Ticker, “Pressure Mounts on County Treasurer as Commissioners Consider Options for Removal,” Oct. 8, 2026, https://www.traverseticker.com/news/pressure-mounts-on-county-treasurer-as-commissioners-consider-options-for-removal/
Image: AI-generated illustration by The Mitten Daily.

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