From Mlive.com Flint Michigan made need big brother to take over and run their city for them. Fascism, Michigan style rolls on

State reviewing Flint's finances under controversial emergency financial manager law

Published: Friday, August 26, 2011, 3:31 PM Updated: Friday, August 26, 2011, 4:39 PM

By Kristin Longley | Flint JournalThe Flint Journal

View full sizeFlint Journal file photoFlint City Hall

FLINT, Michigan — The state treasurer's office will begin a preliminary financial review in Flint, the first city to undergo such a step under the newly revised and controversial emergency financial manager law.

The review process, which has several steps, starts Monday and could end in a number of ways, including a state takeover of the city's finances. It also could end with a so-called "consent agreement" between the city and state, which would grant a local official expanded powers to manage the city's finances.

Flint Mayor Dayne Walling was notified of the review in a letter from State Treasurer Andy Dillon, Walling said this afternoon at a press conference at Flint City Hall. The letter was also sent to Gov. Rick Snyder, he said.

He said his administration is cooperating with the review and says he's optimistic the city will avoid having the state appoint an emergency financial manager.

"We all know what this can mean because Flint has gone through it before," Walling said, referring to the state takeover of the city in 2002. "This time the outcome will be different. Working together... we'll avoid the need for state control of our finances."

No other municipalities have undergone a preliminary financial review since the overhauled emergency financial manager law, also known as Public Act 4, was signed in March 2011, said Terry Stanton, spokesman for the Michigan Department of Treasury.

The Highland Park School District is currently under a review by the state's education department, he said.

Requests for preliminary reviews from local officials in Jackson and Allen Park were turned down by the state, he said.

The emergency financial manager law is under fire from organizers of a statewide drive to repeal it.

Opponents say the powers granted to financial managers under the law, including the power to cancel union contracts and remove authority from local officials, are too far-reaching.

For more on this developing story, visit www.mlive.com/flint this afternoon.

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