Fiscal emergency declared for Madison Township in Fairfield County

COLUMBUS – Auditor of State Keith Faber has declared a fiscal emergency for Madison Township in Fairfield County, after an analysis of the township’s finances confirmed fund deficits that exceeded what is allowed under state law.

The township will now come under the oversight of a financial planning and supervision commission, with the Auditor of State’s Office serving as financial supervisor, to develop a plan to eliminate the fiscal emergency conditions.

The full fiscal emergency analysis is available online at ohioauditor.gov/auditsearch/search.aspx

The Auditor of State’s Office declares fiscal emergency if any one of six conditions exists:

• Default on debt obligation;

• Failure to make payment of all payroll;

• An increase in the minimum levy of the township that results in the reduction in the minimum levy of another subdivision;

• Significant past due accounts payable;

• Substantial deficit balances in township funds; or

• Sizeable deficiency when the township’s treasury balance is compared with the positive cash balances of the township’s funds.

Madison Township met one of those conditions: Auditors identified deficit fund balances of $51,950 as of Dec. 31, 2023, and $42,305 as of June 30, 2024.

With the addition of Madison Township, there are now 13 communities with fiscal emergency declarations, including three cities, seven villages, and three townships. Seven of those declarations have been in place for more than six years, including one, the City of East Cleveland, that was declared in October 2012.

Additional information about fiscal distress declarations is available online at ohioauditor.gov/fiscaldistress.html.