January 10, 2012
Preliminary Review Found “Probable Financial Stress”
The 10-member financial review team, appointed by Gov. Rick Snyder to review the city of Detroit’s finances, held its initial meeting today, Tuesday, Jan. 10, 2012. The financial review process must be conducted confidentially and is not subject to the Open Meetings Act. However, a brief media availability was held near the conclusion of the initial meeting to ensure transparency, answer questions and concerns, and clearly outline next steps.
“To ensure the integrity of the process and a fair, factually-based and objective review, the team’s work and next steps must be conducted confidentially,” said State Treasurer Andy Dillon, a member of the financial review team. “That said, the full report and details will be made public as soon as this work is completed.”
The appointment of the Detroit financial review team was the next step in the P.A. 4 process, after a preliminary review of the city’s finances by the Michigan Department of Treasury found “probable financial stress.”
Under P.A. 4 of 2011, a financial review team must report its findings to the governor within 60 days, unless a 30-day extension is requested and granted or the governor requests a quicker review. The Detroit review team, appointed Dec. 27, 2011, must reach one of the following conclusions: No or mild financial stress exists in the unit of local government; severe financial stress exists in the unit of local government; or, a financial emergency exists in the unit of local government.
Members of the financial review team include:
Andy Dillon, state treasurer; Doug Ringler, director, Office of Internal Audit Services in the Department of Technology, Management and Budget; Dr. Irvin Reid, retired president of Wayne State University; Dr. Isaiah “Ike” McKinnon, retired chief of police, city of Detroit; Conrad Mallett, president, DMC Sinai Grace; Jack Martin, certified public accountant and former chief financial officer for the U.S. Department of Education; Dr. Glenda Price, president emeritus of Marygrove College; Shirley Stancato, president, New Detroit; Frederick Headen, director of Treasury’s Local Government Services Bureau; and Brom Stibitz, senior policy advisor for the department.
For more information about PA 4, visit the Local Government Fiscal Health page on the Department of Treasury’s Web site at www.michigan.gov/treasury.