In the coming weeks, several Wayne County libraries are slated to receive settlement funds to compensate for losing tens of thousands of dollars over the past decade.

Of 29 Wayne County libraries eligible for what are known as penal fines,18 were underpaid as much as $1.9 million, while 11 saw an influx in cash, according to a report from the Library of Michigan the Free Press wrote about earlier this year. 

Penal fines are typically generated from traffic tickets or criminal violations, and the funds are distributed to counties for library budgets. This funding is baked into state law and it can account for anywhere between 3% to 70% of public libraries’ annual budgets.

The Library of Michigan, in its report prepared for public library directors and boards, found that the miscalculation occurred as a result of staff turnover at the county level and subsequent accounting mistakes. The Wayne County Treasurer’s Office has taken responsibility for the error. Last month, county commissioners began approving settlements, and at least one library has agreed to repay the amount it was overpaid over the course of 10 years, while another has agreed to enter into a payment plan.

The Wayne County Commission has so far approved $1.5 million in settlements for 11 underpaid libraries. Commissioners at a committee meeting on July 8 recommended approvals regarding a $1.9 million settlement for the Detroit Public Library and $83,231 for Southgate Veterans Memorial Library. The matter is slated to go before the full commission for a vote on July 17.

“Every dollar does matter when it comes to being able to help out our own community,” said Garrett Hungerford, director of the Redford Township District Library. His library was underpaid $97,542 between 2014 and 2023, and he expects a check in early August.

Wayne County lost the employee who calculated penal fines and the county did not fill that position, the report noted. Staff who took on the job did not have the proper training and already had other tasks, the report said, noting that they were “stretched thin.” As a result of miscalculations, libraries were underpaid anywhere from about $18,000, in the case of Wayne Public Library, to more than $1.9 million for the Detroit Public Library.

Romulus Public Library received about $1.4 million more than it should have, while Ecorse Public Library got an additional $26,700 or so. In all, it appears libraries were underpaid about $3.6 million, according to a spreadsheet prepared by the Library of Michigan.

“We are working diligently with affected libraries to ensure a fair and equitable resolution to this issue. We hope to have agreements in place with all affected libraries related to payouts in the near future,” Adam Abusalah, communications director for the Wayne County Treasurer’s Office, said in an emailed statement to the Free Press.

What library officials have to say

The Free Press reached out to library officials at underpaid and overpaid libraries. Here’s what they had to say:

• The Northville District Library approved a settlement offer of $88,368, according to director Laura Mancini, accounting for the amount the library was underpaid.
• Grosse Pointe Public Library director Jessica Keyser said in an email that she was pleased with the settlement of $139,627. Her library was underpaid. She said the funds “will bolster our ability to offer the level of services that our community expects and relies upon.” Still, she expressed concerns about the accuracy of future payments and said it will be crucial for libraries in Wayne County to communicate with one another.
• James B Lenze, library director of Garden City Public Library, said the library expects to receive the full $76,552 it was underpaid. The Garden City Library Board has not yet discussed how the money would be used, he said.
• Canton Public Library, also underpaid, expects $254,507 in the coming weeks. “As the busiest single-location library in the state, these funds will ensure that our community has the best customer service, collections, programming, and atmosphere … the Canton Public Library can provide,” Library Director Eva Davis said in an email.
• The Detroit Library Commission has a pending settlement agreement with the Wayne County Commission, according to Atiim Funchess, assistant director of marketing and communications for the Detroit Public Library.
• Ecorse Public Library, which was overpaid over the course of a decade, paid back the full amount of about $26,786. “While this situation has been distressing for many area libraries, the Ecorse Public Library board has governed library funds carefully and was in the position to immediately settle this bill, unexpected as it was,” said Director Suzy Shipman in an email.
• Belleville Area District Library owes $122,734, according to Director Mary Jo Suchy. The library board has agreed to enter into a payment plan with the Wayne County Treasurer’s Office. Future penal fine revenue will go toward reimbursing the overpayment, which she estimates will be paid within four years.

‘A system that basically just fell apart’

Wayne County Commissioner Jonathan Kinloch commended the involved parties in addressing and investigating the matter. Going forward the county commission, in its oversight role, expects reports from the treasurer’s office on penal fines going to libraries. The commission had not previously been receiving these reports from the Wayne County Treasurer’s Office, he said.

“It seemed like a few alarms should have gone off in regards to this matter. … It was a system that basically just fell apart,” Kinloch told the Free Press. It’s an issue the commissioners will keep their eyes on, he said.

Abusalah, of the Wayne County Treasurer’s Office, said the office expects repayments to “largely offset” payouts over time. Meanwhile, immediate payouts are expected to come from funds set aside for settlements and litigation, he said.

“The cause of this error was a subtle change in law redefining motor vehicle fines as ‘penal fines’ that escalated with changes in personnel. Although we take full responsibility for the calculation error, this problem began nearly 20 years ago and prior to the current Treasurer’s tenure,” Abusalah said.

The timeline the Library of Michigan cites in its report is roughly 2014 to 2023. Wayne County Treasurer Eric Sabree has been in his role since 2016.

The treasurer’s office has submitted “timely reports of payments to the Library of Michigan,” Abusalah said, but noted that the state library did not notify the treasurer’s office of missing information or support documents, nor did it require any recalculations.

Bob Wheaton, director of the office of public and governmental affairs for the Michigan Department of Education, responded: “The Library of Michigan disagrees with the statement attributed to the county treasurer. The Library of Michigan is pleased to see that the Wayne County Commission is taking action to make libraries whole.”

Abusalah said this error should not happen in the future. 

“We commend the Garden City Public Library for its diligence in discovering the error and pursuing a remedy,” he said.