Oakland County approves fiscal year 2025 deficit‑elimination plan; staff says deficits are timing issues

Oakland County staff presented and the Board of Commissioners approved the county’s FY2025 deficit‑elimination plan, a required resolution that documents how funds with negative unassigned balances will be addressed.

Deputy CFO Cheryl Johnson and Candice Styles, chief of central fiscal services, told the board seven funds showed negative unassigned fund balances at the ACFR snapshot date. Staff explained most deficits result from timing differences — notably reimbursement‑based grant funds that record expenditures before revenues arrive and capital project funds that depend on loan reimbursements and multi‑year resident/property assessments. Styles said long‑term receivables and unavailable revenue are expected to offset most deficits, and several shortfalls have already been eliminated since the snapshot. Fiscal staff said each deficit has a defined funding source and a resolution plan that complies with state requirements.

Commissioners asked whether structural changes would prevent recurring timing deficits; staff said the options are limited because many grants operate on reimbursement bases and using general‑fund appropriations to bridge gaps could be considered supplanting and is not preferred. The board approved the resolution by voice vote (6–0).

The action triggers submission of the county’s plan to state reviewers as part of the annual process and documents projected recoveries early in FY2026. County staff said this is an annual routine reflecting timing differences rather than a sign of systemic overspending.