CHICAGO - Wayne County, Mich. Executive Warren Evans on Sept. 10 issued his first order under the county's newly inked consent agreement with the state.
The order requires that all employees comply with the consent agreement and report any potential breaches to the executive's office. It also requires all departments to get permission from the county's chief financial officer before entering into any contracts that can be considered debt.
"The purpose of issuing this order is to ensure that county employees, elected officials, along with our contractors understand what is required while the consent agreement is in place," Evans said in a statement. "It is important for everyone to understand what to expect as we move together through this process to restore our financial health."
The Wayne County board approved the decree on Aug. 13. Evans is in the midst of a 30-day period of negotiating with unions on new labor contracts. After that, if there's been no agreements, the county will be allowed to impose its own labor contracts.
The county said it has put up a
Evans has pushed for the 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.
The 12-page agreement allows the county to 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. Wayne will not be allowed to file for bankruptcy while operating under the decree.
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.
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.
