Tagged: emergency manager

Flint's finances are getting a more in-depth review by the state after what's described as probable financial stress was found in its finances.

The Flint Journal reports that the state treasury office told Mayor Dayne Walling last week about the finding. A panel is expected to report to Gov. Rick Snyder within about two months whether there's a financial emergency in Flint.

In August, Michigan officials ordered a preliminary review of Flint's finances, the first involving a Michigan city since the state revised its emergency manager law early this year. The process could lead to the state appointing an emergency manager.

Walling says he believes the appointment of an emergency manager can be avoided.

Michigan has emergency managers in place in the Detroit public school system and three cities.

A group that’s filed a legal challenge to Michigan’s emergency manager law wants one of the state Supreme Court justices to recuse himself from the case.

Attorneys for the Sugar Law Center say Justice Stephen Markman has a conflict of interest that should keep him from deciding the emergency manager case.

At issue is Markman’s wife. She’s a lawyer for the state Attorney General’s office. And she’s helping to defend the same law against a legal challenge in a separate, federal case.

LANSING, Mich. (AP) - The school system in Highland Park is getting closer to the possible appointment of an emergency manager because of its troubled finances.

Michigan schools Superintendent Mike Flanagan sent a letter to Gov. Rick Snyder this month saying "probable financial stress exists" in the Detroit-area school district. The letter says a recently revised state law requires that the governor appoint a review team to dig deeper into the district's finances.

The letter summarizing a preliminary financial review of the 1,300-student district was obtained Tuesday by The Associated Press. The letter cites "unsatisfactory progress" in eliminating budget deficits and audit problems.

A message was left Tuesday seeking comment from School District of the City of Highland Park officials.

The district still could avoid the appointment of an emergency manager.

How to get by with less is an issue all levels of government are facing.

The emergency manager in Pontiac, Michael Stampfler, is proposing a combination of tax hikes and service cuts to cure the city's budgetary ills as reported in the Oakland Press:

Stampfler took to the microphone this morning for an informational meeting about the updated financial plan that could mean property taxes being raised between 6 and 8 mills.

He requested the public and elected officials submit ideas in writing if they have alternatives to what is proposed.

Stampfler released an update of his financial plan, adding $15.05 million to the budget with a combination of cuts and possible tax hikes.

An 8 mill property tax increase would mean that a property owner whose house is assessed at $50,000 would pay $400 more a year in taxes.

This past spring, the assessed value of homes in Pontiac dropped by an average of 21.4 percent, resulting in $2.6 million in lost annual revenues for the city.

Update 12:41 p.m.

The request from Governor Snyder came last Friday.

The Sugar Law Center for Economic and Social Justice, the group filing the lawsuit against the state's emergency manager law, posted the request from the Governor today.

In the request, Governor Snyder says without bypassing the other courts "this lawsuit may take years to reach finality.":

I recognize the significance of seeking a bypass to this court as provided by MCR 7.305, and only request this court's involvement after careful consideration of the urgency and importance of the issues presented here.

Snyder says the severe financial difficulties facing local governments and school districts require that the questions of constitutionality be resolved quickly.