A Michigan panel has determined that Wayne County is in the midst of a financial emergency, putting the home of Detroit a step closer toward state oversight.
The team that’s reviewing Wayne’s finances found that the county has been squeezed by budget shortfalls as it underestimated how much it would spend over the past three years, according to an e-mailed statement Tuesday from Michigan’s Treasury Department.
Governor Rick Snyder, who appointed the review team July 2, has 10 days to determine whether to declare a financial emergency. County Executive Warren Evans last month asked the state to do so.
Once a financial emergency is declared, county officials can choose among four options: a state-appointed emergency manager, a consent agreement with the state, mediation, or Chapter 9 bankruptcy. Evans has said that he wants a consent pact.
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