LANSING, MI – “Probable financial stress” currently exists in Wayne County, the Local Emergency Financial Assistance Loan Board determined today.
Pursuant to Public Act 436 of 2012, the Local Financial Stability and Choice Act, the three-member board made the decision after considering a preliminary review of the county’s finances, conducted by the state Department of Treasury during the last two weeks.
“While county officials have taken some important steps in an effort to remedy the current crisis, the county continues to face significant financial difficulties that must be addressed now,” said State Treasurer Nick Khouri, who chairs the Emergency Loan Board. “Given the issues noted in the final preliminary report, many of which county officials agree with, we feel a finding of probable financial stress is warranted.”
The final Preliminary Review report, in addition to several related documents, can be found on the Department of Treasury’s website, under Local Government Services.
Under PA 436, following the finding of “probable financial stress,” the governor shall appoint a financial review team consisting of the state treasurer or his designee, the director of the Department of Technology, Management and Budget or his designee, a nominee from the state Senate majority leader, and a nominee of the speaker of the House of Representatives. The governor may also appoint other state officials or persons with relevant professional experience.
If a financial emergency is eventually found to exist in a local unit of government, local officials determine how the crisis is remedied by selecting one of four options: a consent agreement; an emergency manager; neutral evaluation; or Chapter 9 bankruptcy.
For more information about the Local Financial Stability and Choice Act, visit the Local Government Fiscal Health page on the Department of Treasury’s website.