Michigan Governor Taps Team to Probe Wayne County Books

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CHICAGO - Michigan Gov. Rick Snyder Thursday appointed a review team to delve into Wayne County's finances, a day after a state board found the county to be in a probable state of fiscal stress.

The appointment marks the second step in a process that could end in a partial or full state takeover. On July 1, the Michigan Emergency Loan Board declared the county faces probable fiscal stress.

County Executive Warren Evans on June 17 asked the state to declare the county to be in a financial emergency. The finding would allow the county to enter into a consent agreement with the state, broadening the county's powers to deal with a deteriorating financial condition.

"While county officials are working to address this growing financial crisis, the recent request of the county and the finding of probable financial stress by the Emergency Loan Board indicates a deeper review is necessary," Snyder said in a statement. "And given the county executive's request for an expedited review, I have directed this review team to work as quickly and efficiently as possible, to establish a solid baseline of facts of the county's finances and a report which we can collectively work from."

The team is made up of five members: Clarence Stone, director of Legal Affairs, Michigan State Housing Development Authority; Jeffrey Bankowski, chief internal auditor, State Budget Office within the Michigan Department of Technology, Management and Budget; Tom Davis, deputy director at Senate Majority Policy Office; Sharon Madison, owner, Madison Madison International, a design and construction firm; and Frederick Headen, legal advisor for the Michigan Department of Treasury.

A preliminary report from the state found that the county had not filed an adequate or approved deficit elimination plan since 2010. It also found that general fund property tax revenue declined by $156 million since 2007 while expenditures increased by more than $50 million. The county's primary pension plan is 45% funded with a $910.5 million liability, the state said.

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