County CFO projects roughly $3.1M revenue drop as ARPA spending winds down; budget hearings scheduled

Crystal Simpson, Genesee County’s CFO, presented preliminary revenue projections for fiscal year 2027, estimating total projected revenues of about $125.6 million compared with a 2026 budget of $128.7 million — a decrease of roughly $3.1 million largely attributable to the expiration of ARPA and other one‑time federal grants.

Simpson noted that ~64% of general fund revenue is taxes (including property and marijuana taxes) and that property tax increases are limited by state law to the lesser of 5% or inflation unless uncapping events occur. She described work to refine estimates with state data and outlined the budget calendar: departmental hearings June 22–July 17; draft budget to the finance committee July 15; public hearing July 22; and final adoption target in August.

Commissioners discussed the implications of ARPA’s sunset (Simpson noted approximately $43 million unspent ARPA at one point) and the county’s need to plan for sustainability, including contingency strategies for potential state funding shortfalls affecting prosecutor and public safety positions. Commissioner discussion produced a recommendation for a workshop to analyze structural fiscal issues and ARPA allocation options prior to final budget decisions.

Simpson also described capital planning steps, vacancy savings sweeps into capital project funds, and reductions in net pension and OPEB liabilities in the last audit cycle. Commissioners requested updates on specific items including prosecutorial funding assumptions, ARPA balances and contingency options as part of upcoming budget hearings.