CHICAGO - The Wayne County Commission Thursday approved a consent agreement with Michigan that will mean a partial state takeover for the struggling county.
"This is a very sad day for Wayne County, very sad," said board President Gary Woronchak, D-Dearborn, according to local reports.
Wayne County Executive Warren Evans and the state Treasurer still need to approve the 12-page document. Once the decree takes effect, Evans will have 30 days to negotiate with county unions over new labor contracts and retirement costs. After 30 days, if there is no agreement, Evans can impose conditions on the contracts.
The board voted 14-1 to approve the controversial decree during a special meeting that lasted nearly two hours.
The vote came two days after the state and Evans
Evans has pushed for a consent agreement since June, saying it's the only option that will give the county, home to Detroit, the power it needs to deal with labor costs while leaving control largely in local hands. He has said he hopes the state will release the county from the agreement by next spring.
Some commissioners voiced concern over the provision that means that other elected officials, such as the county sheriff or prosecutor, could create a breach of the consent agreement if they don't comply with proposed budgets. Both the county sheriff and the prosecutor regularly exceed their annual budgets. A breach of the decree could mean an emergency manager appointment and loss of local control.
"There's no joy in the vote today," Commissioner Raymond Basham, D-Taylor, told a local television station. "It's like, do you vote for this or do you vote for an emergency manager? Nobody wants to see an emergency manager."
Deputy County Executive Richard Kaufman said that he was "pleased" with the board vote.
"Wayne County took a lot of years to get itself into financial trouble and now we have the tools to get ourselves out," he told local reporters. "With that kind of history I'm pleased."
The 12-page agreement broadens the county's power over labor contracts and allows it try to restructure some of its debt or reach settlements with creditors. The county isn't allowed to issue more bonds without state permission.
The decree requires Wayne to continue to make timely debt payments. It also allows Wayne to "enter into agreements with creditors or other persons or entities for the payment of existing debts, including the settlement of claims by the creditors," the document says. "The county also may enter into agreements with creditors or other persons or entities to restructure debt on terms, at rates of interest, and with security as agreed among parties, subject to approval by the state Treasurer."
The consent agreement also gives the county until Jan. 31 to present the state with a plan for its abandoned jail project in downtown Detroit. The unfinished facility, which was financed with $200 million of bonds, has been abandoned since 2013 due to cost overruns. Under the deal, the state will have financial oversight over the project.
On the labor side, the agreement gives Evans the powers of an emergency manager over labor contracts after 30 days of so-called good faith negotiations. The powers relate to "wages, hours, and other terms and conditions of employment, whether economic or noneconomic, for county employees previously covered by the expired collective bargaining agreement," according to the document.
The county cannot sell any significant assets or transfer the powers or responsibility of the Wayne County Airport Authority, which runs Detroit's main airport, without state approval.
Michigan will give the county financial management and technical assistance under the terms of the deal, including assistance on revenue estimating conferences and two-year budgeting.
Wayne will be required to hold a revenue-estimating conference twice a year as well as submit monthly reports to the state and an annual audit.
The state treasurer will decide when to release the county from the agreement, and the state will continue to monitor the county's finances for two years after it is released from the agreement.
