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Ecorse financial emergency resolved; Governor appoints Transition Advisory Board

Tuesday, April 30, 2013


LANSING, Mich. - Gov. Rick Snyder today announced that the financial emergency in the city of Ecorse has been resolved, and appointed a Transition Advisory Board (TAB) to help ensure a smooth transition and guide the city to continued financial stability.


"Emergency managers like Joyce Parker have made tremendous progress in resolving financial emergencies in local communities," Snyder said. "Joyce Parker brought sound fiscal management and worked closely with elected officials as well as community residents and businesses alike to return Ecorse to financial stability while bolstering services. I would like to thank Joyce and the community for a job well done."


On Monday, April 29, Parker notified the governor that it is her determination the city's financial emergency has been sufficiently addressed. Parker cited several factors and accomplishments, including: elimination of a $14.6 million cumulative deficit and a $5 million structural deficit; reorganization of police and fire departments into one public safety department; reduction of operating costs by $4.3 million annually; increase of annual revenues by $2.3 million; evaluation and rebidding of all city services, which generated one-time savings of more than $2.8 million; receipt of more than $4 million in grants to support city operations and service delivery.


In addition, Ms. Parker worked with the State Legislature to develop legislation that enabled the city to re-enter the bond market, borrow money to pay off outstanding judgment levies and increase the city's bond rating from "junk" to "A."  Parker also initiated a strategic planning and training model for the community - "Envision Ecorse." The effort was developed in conjunction with the Michigan Municipal League, the Community Foundation for Southeast Michigan, and the Land Information Access Association to support growth and sustainability in Ecorse for years to come. A two-year city budget is also in place.


Ms. Parker will continue to be involved in Ecorse, as a member of the TAB appointed by Gov. Snyder, effective May 1, 2013. Other members of the TAB include Ed Koryzno, administrator of the Department of Treasury's Office of Financial Responsibility (State Treasurer designee) and Rob Bovitz, a CPA and president of Bovitz CPA, P.C. (Department of Technology, Management and Budget director designee).


"Members of this board, a new concept under PA 436, will assist and facilitate the smooth transition back to local control," Snyder said. "The goal of a TAB is to work cooperatively with local officials and help ensure a responsible financial course is maintained moving forward."


Joyce Parker will continue to in her role as emergency manager for the city of Allen Park.


For more information about the state's most recent emergency manager law, Public Act 436 of 2012, the Local Financial Stability and Choice Act, visit the Local Government Fiscal Health page on the Department of Treasury's web site at