Wayne County Institutes Spending Freeze Due To Coronavirus

WAYNE COUNTY, MI — The county has instituted hiring and spending freezes in response to a projected revenue shortfall of at least $152 million resulting from the new coronavirus pandemic.

Wayne County Executive Warren Evans on Monday signed Executive Order 2020-001, which put the freezes into effect across county government.

"The ongoing global pandemic and 'Stay Home' orders are putting a tremendous strain on the county's ability to fund essential services at current levels," Evans said in a statement. "This order is a proactive step to ensure we can balance our books without significantly impacting service levels."

Don't miss important updates from health and government officials on the impact of the coronavirus in Michigan. Sign up for Patch's daily newsletters and email alerts.

The order comes after the county announced it was staring at a $152 million deficit. The county announced at the time that it was working on an updated two-year budget forecast that assesses every fund and department as well as evaluated potential investment losses in pension and other post-employment benefit plans.

Evans' order specifies that current and future vacant full-time, part-time and temporary positions as well as contract personnel shall remain unfilled, and salary and wages shall remain frozen except when raises are required by collective bargaining agreements. Other spending changes, such as overtime, travel, operating services, supplies, professional services, other charges, acquisitions, major repairs, subscriptions, memberships, equipment and capital purchases will require special approval by a review committee before being disbursed.

"Our goal is to avoid layoffs and service reductions as much as possible," Evans said. "My administration intends to collaboratively work with other County officials and unions on solutions to the fiscal challenge created by coronavirus, just as we did to resolve the County's financial emergency when I took office."

Evans said that while he is committed to responsible budgeting, he also urged federal leaders to better support state and local governments struggling with coronavirus-related fiscal challenges.

"In Wayne County, we've delivered five straight budget surpluses without raising taxes, built a rainy-day fund, and improved our credit rating to investment grade; but that isn't enough to weather a once-in-a-century pandemic," Evans said. "Local governments across Michigan and the nation will be strained to a breaking point without assistance. If the federal government can explore bailouts for airlines and the oil industry, they should help local government with resources for roads, parks, schools and police."

Read more:

• Michigan Coronavirus: Fewer Than 500 New Cases Reported
• Detroit Releases Nursing Home Coronavirus Reports
• Detroit Receives $400K Donation To Continue Coronavirus Testing