Michigan's most populous county moved a step closer to state oversight Wednesday after Gov. Rick Snyder determined that Wayne County — home to the city of Detroit — is in a financial emergency, The Associated Press reported yesterday. Snyder's announcement came a day after a state-appointed review team came to the same conclusion. Wayne County, which has 1.7 million residents, faces a projected $171 million deficit by 2019 if remedial measures aren't taken. The governor said local leaders took "important steps toward resolving" the persistent financial crisis, but the review team's report clearly showed a financial emergency exists. Snyder noted that a preliminary review of its finances found that Wayne County has had cash flow issues. County officials also had not filed adequate or approved deficit elimination plans with the Treasury department from fiscal year 2010 to 2012. The county also failed to submit a deficit elimination plan for 2014. If it is confirmed, county officials will have the option of working with the state under a consent agreement, having an emergency manager appointed, receiving a neutral evaluation of its finances or filing for chapter 9.
