Flint's financial plan on hold
Update 3:50 p.m.:
The city of Flint did not get approval today from the state for a $20 million bond. The city needs the money to pay its bills.
The state Treasurer’s office asked the State Administrative Board to table the bond request, which it was expected to approve. The Treasurer’s office is concerned that the city doesn’t have a plan to deal with its long-term debt.
Flint Mayor Dayne Walling is optimistic the city will get some help from the state.
“I’m confident the city of Flint and the state Treasurer’s office will work together on a short-term, if not a long-term solution here in the next few weeks.”
Flint faces a multi-million dollar budget deficit. The city has laid off police officers and dozens of other employees and has reached pay cuts with other city unions. But it still might have trouble making payroll in the coming months.
Update 2:50 p.m.:
The State Administration Board put off a decision on the city's budget plan this morning. The city wants to borrow money in the form of $20 million in bonds to cover its budget deficit.
The Flint Journal has an update from Flint City Councilman Josua Freeman:
By the end of this month or next month, the city will only have about $500,000 in cash on hand, Freeman said. That's not nearly enough money to meet the payroll expenses of $1.5 million to $2 million every two weeks, he added. "If nothing changes and we don’t improve our cash flow, we're not going to have enough money to operate," Freeman said.
If the city cannot make payroll, a state takeover or Chapter 9 bankruptcy might be next.
The city of Flint wants to issue bonds to cover it's $17 million budget deficit, but state officials have yet to green light that plan.
The State Administration Board was scheduled to vote on that plan today, but it appears plans have changed.
The Flint Journal is reporting the Board voted to remove the city's request from its agenda today. The Journal reports that led to a cancelation of a Flint City Council meeting scheduled for tomorrow:
Tomorrow's City Council meeting to discuss a $20 million bond request from the state has been canceled. The meeting, which was scheduled for 5:30 p.m. at City Hall, was canceled after The State Administration Board voted to remove the city's request from its meeting agenda this morning...That move came at the request of the state treasurer's office...City Council President Jackie Poplar said she was made aware of the situation and had no comment until she receives further information.