Wayne County Executive Orders Spending Freeze

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County Executive Warren C. Evans had ordered an immediate spending free in financially troubled Wayne County, where officials are trying to close a budget hole that may be far deeper than previously estimated.

“This is the first step to resolve the county’s financial crisis” Evans said in a news release. “It’s critical we begin to take the necessary steps to solve our financial crisis and restore fiscal health. Reducing expenditures wherever possible must be our first priority.”

When Evans took office in January, he said the county’s financial holem was deeper than his predecessor in the county executive’s office, Robert Ficano, had estimated. Ficano put debt due to property-tax losses from the Great Recession at $200 million, but “the numbers were bad,” Evans said last month.

“We’re not dealing with that,” he said. “It just didn’t work.”

Related:

• It’s Not Good’: Wayne County’s Financial Hole Deeper than Thought

Evans pledged to come up with a plan to address the spiraling debt crisis that streamlines expenses and reduce expenditures without throwing vital police and public health services.

With some exemptions, the order Evans issued Monday includes freezes on both hiring and wage increases, unless mandated by union contracts. Workers providing services under contract won’t be renewed or replaced unless a newly created Executive Review Committee determines their contributions are essential.

Finally, the order restricts overtime, travel, operating services, supplies, professional services, acquisitions, major repairs, cellular phones, subscriptions, memberships, equipment and capital purchases.

The exemptions for public health and safety departments include funds for declared emergencies, expenditures for housing juvenile offenders in detention facilities, and budgeted sheriff deputies and assistant prosecutors

Federal or state funded expenses; those mandated by the county charter, state or federal law; court orders and cooperative agreements, are also not affected.

The Executive Review Committee, charged with ensuring the terms of the executive order are followed, includes the following officers, or their designees:

• county executive’s chief of staff,
• chief restructuring officer,
• budget director,
• corporation counsel, and
• director of personnel/human resources.

The review committee may implement further restrictions to increase savings and reduce expenditures.

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Photo via Creative Commons