Governor Snyder has 10 days before deciding how to proceed.
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“The report the State of Michigan Financial Review Team sent to Governor Rick Snyder validates the work done by my administration to reveal the true financial status of Wayne County”, said Wayne County Executive Warren Evans. Wayne County Executive Warren Evans requested the review last month, asking the state for a fiscal emergency declaration and a consent agreement to fix problems. If he declares it does exist, the Wayne County Commission would then have seven days to pick one of four options – consent agreement, emergency manager, neutral evaluation or bankruptcy – although the law does also provide an opportunity for an additional hearing and an appeal, according to the report. “We will seek a consent agreement that respects the roles of the Wayne County executive and commission, and gives us the tools to focus our efforts on resolving the $52 million structural deficit”, Canning wrote.
In addition to the $52-million structural deficit, the county has been taking about $20 million out of the general fund to make contributions to a troubled pension system that’s only about 44-percent funded.
“Chronic financial crises will only grow worse, and the possible solutions will be far more hard, if the crisis is not addressed immediately”.
Snyder’s announcement came a day after a state-appointed review team came to the same conclusion.
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The team that’s reviewing Wayne’s finances found that the county has been squeezed by budget shortfalls as it underestimated how much it would spend over the past three years, according to an e-mailed statement Tuesday from Michigan’s Treasury Department. Healthcare-related liabilities represent 40 percent of the county’s long-term financial obligations. Its report says numerous conditions led it to determine a financial emergency exists in Wayne County. The team was appointed by Snyder on July 2.
