Governor Rick Snyder agrees that Michigan’s most-populated county is in a state of fiscal crisis. The decision pushes Wayne County closer to state oversight.
The governor has formally ratified the finding of a state board that Wayne County cannot pay its debts. The finding sets the stage for a consent agreement with the county on big cuts to balance its budget.
“Chronic financial crises will only grow worse, and the possible solutions will be far more difficult, if the crisis is not addressed immediately,”
Snyder said in a statement.
“Restoring Wayne County to a secure financial foundation will ensure residents will continue to get the services they need.”
The governor says he agrees the county has a deficit, that it’s growing, and there is not a workable plan to fix it. It’s projected Wayne County faces a financial crisis that could reach $171 million by the end of the decade if it goes unchecked.
The governor says earlier cost-cutting efforts have helped, but are insufficient. County officials could ask for a reconsideration hearing. If the governor sticks with his finding, it could give Wayne County Executive Warren Evans a stronger case as he seeks concessions from unions and the county commission. He says Wayne County can still solve its fiscal troubles without following Detroit into bankruptcy.