Wayne County committee forwards $38.2 million budget adjustment to full commission without recommendation

The Wayne County commission’s committee voted to forward a budget adjustment — listed in the meeting as “budget adjustment 20 24 35 3 0 2” — to the full commission without a recommendation. The adjustment would certify revenue in the general fund and reallocate expenditures and revenue sources across several county funds, including a proposed transfer of $38,200,000 from excess fund balance.

Deputy Budget Director Greg McIntyre told the committee “what you have before you is the excess fund balance,” and said the county performs the transfer exercise annually. McIntyre said the county moved about $36 million last year and about $50 million the year before that. He said some transfers will cover deficits incurred in the prior fiscal year and that money was also being moved into the 401 capital fund as a placeholder to prepare for future obligations or priorities from the commission and the county CEO’s office.

The committee’s discussion focused primarily on process and timing. A committee member asked why the transfers into a fund that was not in deficit had not gone through a separate appropriation process and whether individual projects would be brought back to the commission for approval. McIntyre replied that the transfer into the capital fund was a placeholder and that specific projects would be brought to the commission for approval.

The Auditor General told the committee the adjustment was late, saying, “This budget adjustment is coming to us 4 and a half months after the close of the fiscal year.” The Auditor General warned the late submission risks a repeat finding under Public Act 2 and could delay the county’s ability to complete the financial statement audit, which must be finished by March 31 and transmitted to the state. Committee members asked the Auditor General to issue a memo documenting those concerns and asked that county counsel be copied on the communication.

Committee members also questioned specific fund impacts. A committee member asked whether the county’s Community Development Block Grant (CDBG) fund had fallen into deficit; staff said chargebacks had driven that fund into about a $2.5 million deficit and that the county had presented a deficit-elimination plan the prior year. McIntyre said the county is revisiting the chargeback model with outside help.

County staff and at least one committee member cited a recent cyber incident as a reason for delayed financial reconciliation. McIntyre said the cyber challenges and some remaining uncertainty about the final fund-balance drop contributed to the later-than-expected submission.

After discussion, a motion to forward the item to the full commission without a recommendation was made and supported; the committee approved the referral by voice vote. The motion did not specify a mover or seconder in the committee record shown in the transcript.

The full commission will consider the adjustment at a future meeting. The committee did not take final appropriations; McIntyre repeatedly said more specific project-level appropriations would be returned to the commission for approval.

Votes at a glance

- Budget adjustment 20 24 35 3 0 2 — Motion: forward to the full Wayne County Commission without a recommendation. Outcome: forwarded by committee (voice vote). Mover/second: not specified in the committee transcript. Vote tally by name: not specified.