The Road Commission of Kalamazoo County received a clean audit for the most recent fiscal year, with no material weaknesses and no qualifying statements, a result auditors and commissioners noted was particularly meaningful given a transition in the commission’s accounting staff.
Representatives from Plante Moran presented the audit findings to the board at its June 2 meeting. The report showed the commission’s pension and retiree healthcare (OPEB) funds are both overfunded, a positive financial indicator. Capital assets, which primarily represent the cost of the county’s road infrastructure, increased year over year, reflecting that more replacements were made than were depreciated out.
Fund Balance and the Road Ahead
The commission’s fund balance currently sits at approximately $14 million and is expected to decline to around $11 million in 2026. Managing Director Travis Bartholomew described that as an intentional and planned drawdown, driven by the timing of construction projects coming online this season. The commission entered the year expecting to spend more than it brings in.
One budget pressure Bartholomew flagged on the record: state road funding has not increased as promised. He told the board that despite legislative statements about increasing road funds, allocations had not gone up — the commission had instead seen a decline. Meeting debt obligations regardless of revenue levels has required tradeoffs in what projects can move forward.
Michigan Transportation Fund Revenue Stabilizing
After a difficult start to 2026, Michigan Transportation Fund allocations to the Road Commission have stabilized. Revenue came in well below budget in the early months of the year, rose in April, dipped again in May, and has since recovered. As of the June meeting, the commission was running approximately 1.5% above its monthly budget target.
If the trend holds through the construction season, Bartholomew said the commission may be in a position to add a few late-season road projects. The board had already pre-purchased chip seal materials, which Bartholomew noted should help manage costs as construction invoices begin to arrive.
