Wayne County Votes To Enter Consent Agreement With State To Fix Finances
DETROIT (WWJ/AP) - Wayne County will enter into a consent agreement with the state of Michigan in an effort to fix a $52 million structural deficit.
County Executive Warren Evans announced the decision Thursday, saying it will help the county continue "on its road to financial recovery."
"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 in a statement. "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."
The commission voted to 12-2-1 to approve the consent agreement; Jewel Ware and Raymond Basham voted against the agreement, while Ilona Varga abstained from voting.
A consent agreement was one of four options available after Gov. Rick Snyder confirmed a financial emergency in Wayne County. The other choices were a state-appointed emergency manager, a neutral evaluation, or Chapter 9 bankruptcy.
Varga said she opted out of the vote because she thought an emergency manager would have been the best option.
"I could be wrong, but only an emergency manager could really take a fair look at the entire county, including the administration," she said. "And I don't believe that the administration driving this will be able to police themselves."
The Governor's office will likely be pleased with the county's decision to approve a consent agreement, according to WWJ Lansing Bureau Chief Tim Skubick.
"This was the top priority not only for the governor but for the state treasurer. They did not want the county to go to an emergency manager and they did not want Chapter 9 bankruptcy, obviously, and this route they think will lead to a solution," said Skubick. "Now, the trick is to get the concessions under the consent agreement to reduce the debt."
Wayne County, which has 1.7 million residents, faces a projected $171 million deficit by 2019 if remedial measures aren't taken.
Evans had asked the state to declare a financial emergency and wanted enter into a consent agreement that will allow the county to impose health care and pension savings, if necessary.
Wayne County's financial troubles follow Detroit's emergence late last year from the largest municipal bankruptcy in U.S. history. Detroit shed or restructured $7 billion in debt during its bankruptcy.
Detroit entered a consent agreement with the state in 2012, but was unable to consistently meet the requirements of the deal. Snyder confirmed Detroit's financial emergency in early 2013 and that March appointed turnaround specialist Kevyn Orr as emergency manager.
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