COLUMBUS, Ohio – Madison Township in Fairfield County has been placed under fiscal emergency by Auditor of State Keith Faber, following a financial analysis that revealed fund deficits exceeding the limits allowed by state law.
The township now faces direct oversight by a financial planning and supervision commission, with the Auditor of State’s Office acting as financial supervisor. Together, they will develop a strategy to resolve the fiscal emergency conditions and stabilize the township’s finances.
Deficit Fund Balances Prompt Emergency Declaration
The fiscal emergency was declared after auditors found deficit fund balances of $51,950 as of December 31, 2023, and $42,305 as of June 30, 2024. This placed Madison Township under one of six conditions that can trigger a fiscal emergency under Ohio law.
These conditions include:
- Default on debt obligations
- Failure to make payroll payments
- A levy increase affecting other subdivisions
- Significant past-due accounts payable
- Substantial deficit fund balances
- Treasury deficiencies compared to cash fund balances
Madison Township joins 12 other Ohio communities currently under fiscal emergency, which includes three cities, seven villages, and three townships. Notably, seven of these have remained in fiscal emergency for more than six years, with the City of East Cleveland’s emergency status dating back to October 2012.
Next Steps for Madison Township
Under fiscal emergency status, Madison Township will work with the supervision commission and the Auditor of State’s Office to create a financial recovery plan. This process will involve identifying areas to cut costs, strategies to increase revenue, and measures to avoid further deficits.
The full fiscal emergency analysis for Madison Township is available on the Auditor of State’s website at ohioauditor.gov/auditsearch/search.aspx. Additional information about fiscal distress and emergency declarations in Ohio can also be found at ohioauditor.gov/fiscaldistress.html.