Wayne County Exec Seeks Financial Emergency Declaration

Wayne County Executive Warren C. Evans has asked for the state’s help in guiding Wayne County through its financial crisis. (Patch file photo)

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Wayne County Executive Warren C. Evans is asking the state to declare a financial emergency in the troubled county as part of his plan to whittle away at a $52 million structural deficit.

In a letter delivered to state treasurer Nick Khouri, Evans asked that Wayne County be authorized to enter into a consent agreement with the state that would allow the county to continue negotiating with its stakeholders, but preserve the county’s ability to make, if necessary the difficult decisions, needed to move the County out of financial instability.

“Our recovery plan provides a clear path to financial stability for the county, but we are keenly aware that our time frame to get the job done is quickly fading,” Evans said in a statement.

“Throughout this process we are constantly evaluating where we stand and proactively seeking solutions to work ourselves out of this massive deficit,” he said. “I am requesting this consent agreement because the additional authority it can provide the County may be necessary to get the job of fixing the county’s finances done.”

Treasury Department spokesman Terry Stanton told The Detroit News his office will take the request for a state-led financial review under consideration.

“We appreciate the fact the county executive is looking to address the county’s fiscal issues head on and we’ll react accordingly,” Stanton told The Detroit News.

Consent agreements, legal contracts negotiated by local governmental entities and state agencies to address the local unit’s financial problems, aren’t common among municipalities. Some local entities with the agreements in place include the cities of Inkster and River Rouge, and Royal Oak Township.

County Commissioner Tim Killeen, D-Detroit, told The Detroit News he opposes the consent agreement. He hasn’t talked to Evans about it, but said the request could lead to the appointment of an emergency manager. “I’d rather not go down that path,” Killeen said.

Detroit operated under a consent agreement from April 2012 to March 2013 before Keyvn Orr was named emergency manager. Shortly after, the city filed for Chapter 9 bankruptcy protection.

Before a consent agreement can be put in place, the state treasurer’s office will conduct a review of the county’s finances. If the stress on county finances is minimal, no action will be taken. If problems are found, the local government can develop its own pan to address the issues and submit it to the treasurer’s office. In the worst-case scenario, an emergency manager would be appointed.

Evans said his recovery plan is ambitious and provides strong medicine to solve the County’s financial crisis and requests that all stakeholders share in the sacrifice to return the County to a solid financial footing.

Evans outlined his reasons for seeking the consent agreement in the letter below.

WC Request for Preliminary Review