Flint can issue bonds to address deficit, still more to do
The city of Flint has scored a partial victory in its efforts to get its city budget deficit under control. But there is still more work to do. The city of Flint is looking at a projected $17 million budget deficit.
City leaders had asked the state for permission to sell $20 million in bonds to stabilize Flint’s budget. But the state only approved $8 million in bonds. The Flint City Council must still approve the $8 million bond issue.
Flint mayor Dayne Walling says that will help get the city through the current fiscal year. Flint has already laid off dozens of city employees, including police officers.
But Walling says Flint may need to cut $12 million in city spending next year. The mayor says a proposed change in state revenue sharing could force evcen deeper cuts next year.
“We of course need to see where the state finally comes down with state revenue sharing when they’re through with their budget process. Of course the legislature will have its say on the governor’s proposal.”
Flint, like other Michigan cities, stands to lose millions of dollars under the governor’s proposed changes to state revenue sharing.