Flint, Mich. faces possible state takeover under emergency manager law
Flint could become the first city to get taken over by the state since Gov. Rick Snyder approved sweeping new powers for appointed Emergency Managers.
On Friday Flint Mayor Dayne Walling announced that the Treasury Dept. has initiated an official review of the city’s finances.
Under Public Act 4 — the Emergency Manager law — financial review is the first step in a process that can confer new powers to elected officials or transfer all decision-making power to an Emergency Manager who reports only to the Treasury Dept. and the governor.
Benton Harbor, Pontiac, Ecorse and the Detroit Public Schools are now being run by Emergency Managers.
Brandon Jessup of Michigan Forward is a coordinator of the campaign to repeal the Emergency Manager law.
Jessup says that Treasurer Andy Dillon is not treating communities equally.
Flint, facing a $2 million deficit is under review when other municipalities, Allen Park and Jackson were refused preliminary reviews. In May Jackson mayor Karen Dunigan requested a preliminary review from the state’s treasury department based on the city’s accumulated pension debt of $20 million and $47 million in bonded debt. Allen Park followed suit, citing the city’s bond rating falling to BBB. Both of these cities would be granted a review under the new law, since they’ve hit a few of the laws triggers; however Michigan’s Treasurer denied both municipalities a preliminary hearing.