Gov. Snyder determines financial emergency in Wayne County

It took just 21 calendar days for a state-appointed financial review team to look over the books in Wayne County and declare a crisis.

The financial review team found that the county’s last four annual financial audits showed “notable variances between General Fund revenues and expenditures as initially budgeted, as amended, and as actually realized”. Under Michigan law, local governments can choose between a consent agreement, emergency manager, neutral evaluation, or Chapter 9 municipal bankruptcy to deal with its financial emergency.

A message seeking comment was left for Commission Chair Gary Woronchak, D-Dearborn.

Wayne County has until 5 p.m. on July 29 to request a hearing on Snyder’s determination. If a hearing is requested, it would be held the following morning before State Treasurer Nick Khouri or his designee.

Snyder had 10 days to reach a conclusion on the county’s condition. Evans hopes to negotiate a consent agreement that would force measures to balance the county budget.

“We will search a consent settlement that respects the roles of the Wayne County Executive and Commission, and provides us the instruments to focus our efforts on resolving the $52…”

According to the county executive’s recovery plan, unfunded healthcare-related liabilities were estimated to be $1.3 billion as of the last actuarial valuation with funding set aside for this goal of less than one percent of liabilities.

After Snyder’s decision was announced, two state legislators weighed in on the county’s situation.

Wayne County Commissioners now have four options. Evans had said he wants to enter into a consent agreement with the state that will allow the county to continue negotiations with its stakeholders. “But just because you need help doesn’t mean you have to give up your rights to govern”. The city later went into bankruptcy protection, from which it emerged in December.