Wayne County Chooses Consent Agreement to Resolve Financial Emergency

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With little discussion Thursday, Wayne County Commissioners approved a consent agreement with the state as an option to resolve its debt crisis.

The consent agreement was approved in favor of two more drastic options of an emergency manager of Chapter 9 bankruptcy. The consent agreement will spell out specific budgetary benchmarks the county must meet, as well as a timeline.

In a statement, Wayne County Executive Warren C. Evans said the commissioners chose the right option to help the county deal with a $52 million structural deficit, stemming in part from a substantially underfunded pension system and dwindling tax revenues, down about$100 million annually since 2008. The county’s estimated accumulated deficit is $150 million.

“As we finalize the terms of the consent agreement with the state treasurer, we will continue in our commitment to negotiate in good-faith with our unions,” Evans said. “Although a consent agreement will eventually give the county the ability to set the terms of employment, our preference is to reach agreements at the bargaining table.

“We have already made significant strides towards getting Wayne County back on the right fiscal path. The consent agreement will ensure our ability to fully implement our recovery plan and stabilize the county for the future.”

The commission voted 12-2 n favor of pursuing the consent agreement, The Detroit News said.

Commissioners Jewel Ware, D-Detroit, and Raymond Basham, D-Taylor, voted against it and Commissioner Ilona Varga, D-Lincoln Park, abstained.