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Wayne County staff projects revenue growth but flags marijuana-tax, lodging-tax uncertainty
Summary
Management & Budget said general fund revenues are expected to rise, with property-tax receipts of about $392 million in FY25; staff warned that a 24% wholesale marijuana tax and an expiring lodging/car rental tax are legally uncertain and could reduce projected road and tourism-related revenues.
Wayne County officials told the Ways and Means committee on Jan. 8 that overall county revenues are expected to increase in the next budget cycle, but they cautioned that two contested revenue sources could reduce projected receipts.
Management and Budget economist James Tatum told the committee that "property tax revenues came in at about $392,000,000 in the general fund for fiscal year 25," and that staff expect growth to continue through fiscal years 2026'28. He said improvements in the collection rate also contributed to the revenue picture.
The presentation and commissioners' questions focused on two risk factors. Staff said provisions in the recent transportation finance bills and related Act 51 amendments will boost county road-fund receipts, but part of that boost relies on a 24% wholesale tax on marijuana sales that is "currently under contention in court," so the county will be conservative in estimating proceeds from that source. Staff also noted the stadium and convention facility tax levied on car rental companies and lodging providers is scheduled to expire in October; they currently project that revenue will discontinue after FY26.
Commissioners asked about how the county will respond if one-time federal funds such as ARPA are not available going forward. Tatum and other budget staff said ordinary federal awards are typically reimbursable by activity and that one-time funds that have been exhausted are not being counted as recurring revenue; they emphasized the budget baseline is being set conservatively.
Chair Kenlock asked staff to provide a follow-up report on the lodging/car-rental tax history and whether enabling legislation would be required to continue it. Committee members also requested a breakdown showing how much of projected road funding depends on marijuana-related revenue versus other state-level earmarks.
The committee did not take a formal vote on the policy statement at this meeting beyond routine agenda approvals; staff said they would return with additional information for future budget deliberations.
