Fiscal Emergency Declared for the City of Marion

Press Release • Ohio Auditor of State

COLUMBUS - Auditor of State Keith Faber declared a fiscal emergency Tuesday for the City of Marion after an analysis of the city's finances confirmed deficits that exceeded what is allowed under state law.

Marion 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 https://ohioauditor.gov/auditsearch/search.aspx.

The Auditor of State's Office declares fiscal emergency if any one of six conditions exists: 1) default on debt obligation; 2) failure to make payment of all payroll; 3) an increase in the minimum levy of the city that results in the reduction in the minimum levy of another subdivision; 4) significant past due accounts payable; 5) substantial deficit balances in city funds; and 6) a sizeable deficiency when the city's treasury balance is compared to the positive cash balances of the city's funds.

Auditors identified a budget deficit of about $2.4 million. The city has been operating under a fiscal caution declaration since November 2025 and was unable to develop an acceptable plan to address the issues involved as of April 2026.

With the addition of Marion, there are now 14 communities with fiscal emergency declarations, including four cities, seven villages, and three townships.

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

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The Auditor of State's Office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,900 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.