A state review team has determined that a financial emergency exists in Wayne County.
The determination sets the stage for a consent agreement between the county and the state.
Wayne County Executive Warren Evans requested the state review, calling it a necessary move for a county that’s drowning in red ink.
The review found that county officials are spending money that was not in the county budget, which violates state regulations.
It also found that the county cannot fund more than $1 billion of its health care obligations and that officials still are unable to agree whether to build a new county jail or renovate existing facilities.
County Executive Evans does not want the state to appoint an emergency manager over the county’s finances.
Instead Evans wants to reach a consent agreement with the state that could give him more leverage in dealing with the county’s creditors, employees and the county commission.
Governor Snyder has 10 days to decide how to proceed.