The city of Detroit’s bankruptcy may be over, but now Wayne County is officially in a financial emergency.
This is not a joke.
Last week, upon the findings of an independent review that was tasked with reviewing the county’s finances earlier this month, the governor announced the official determination.
Wayne County is in a financial emergency.
Earlier this year, reports of the county’s financial woes surfaced. Wayne County Executive Warren C. Evans moved quickly, hoping to find areas within the county to save money, but it was not enough. In early March, Evans declared a partial spending and hiring freeze to help with the financial constraints.
Months later, Evans requested that the state declare Wayne County under a financial emergency in June. In Michigan, the county is the first of this size to encounter such a predicament.
“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,” said Evans early this year in a news release.
The county’s financial collapse has continued as time has passed since Evans’s request. To combat the continuous decline in funds and control, Evans launched an efficiency and savings plan that including relocating and downsizing various departments.
For instance, employees of the Detroit Land Banking Authority were relocated to the historic Guardian Building and management rights of certain property were leased to private companies for the next two years.
“Securing these agreements, by themselves, are not the silver bullets that will solve our $52 million structural deficit,” said Evans. “These agreements however, and the numerous other efforts we are making to implement our recovery plan and improve the trajectory of the county’s financial situation, will collectively make a difference.”
Evans and the county are planning other moves to help stabilize and minimize the looming underfunded pension system and a projected deficit by 2019 of $171.4 million.
Yesterday, Gov. Rick Snyder confirmed the dire straits of the county’s financial predicament. The news of the county’s financial affairs are no longer speculation, but instead a pressing concern from the local to state agenda.
“I remain in agreement with the conclusion of the independent financial review team’s report,” said Snyder. “As I noted previously, officials have taken steps to begin addressing the county’s crisis, but there can be no disputing that a financial emergency currently exists and must be addressed swiftly and surely to ensure residents continue to receive the services they need and deserve and so the county can continue its economic recovery.”
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