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Oakland County Q2 forecast shows $3.7M revenue upside and $21M lower spending from vacancies
Summary
The county’s Q2 financial forecast reported a $3.7 million favorable revenue variance (including ~$546,800 from medical-marijuana cost-sharing) and a $21 million under-spend driven by personnel vacancies; commissioners pressed staff on billing timing and deferred contract revenue.
Oakland County’s chief of budget and grants told commissioners on June 3 that the county’s Q2 financial forecast projects about $3.7 million in additional revenue and roughly $21 million in lower spending as of the second-quarter forecast.
Brent Shrub, chief of budget and grants, said $546,800 of the revenue upside reflects additional cost-sharing from the state connected to medical-marijuana revenue and that an additional $2.235 million favorable variance is reflected in indirect cost recovery related to grants. Shrub said timing of reimbursements accounts for nearly $992,300 in other favorable revenue. "We are looking at 3.7 to the good in terms of revenues," he said.
On expenses, Shrub said about $19 million of the $21 million favorable variance was in personnel-controllable categories, reflecting turnover and vacancies across departments. Commissioners asked about billing lags, deferred local contract payments (some communities deferred a 4% contract increase to 2027) and district-court revenue declines tied to lower case loads after marijuana legalization.
Commissioners urged staff to accelerate close processes and reporting to deliver forecasts earlier after quarter close; staff said they are piloting changes to speed up month-end and quarter-close work. No board action beyond review was required; the forecast will be incorporated into ongoing budget work and the FY27 process.
What happens next: Fiscal staff will continue to refine close calendars, follow up on deferred contract revenues, and incorporate Q2 results into budget deliberations ahead of public hearings this summer.
