Governor Confirms Flint Financial Emergency

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November 29, 2011

Former Acting Mayor Appointed Emergency Manager  

Gov. Rick Snyder today appointed Michael K. Brown as emergency manager for the City of Flint, pursuant to Public Act 4 of 2011, the Local Government and School District Fiscal Accountability Act. The appointment is effective Thursday, Dec. 1, 2011. Brown is currently president of the Prima Civitas Foundation and director of the Flint Area Reinvestment Office, which he established in 2009. Brown served as acting Flint mayor for six months in 2009.

“Michael Brown has a strong track record of serving the Flint-area community,” Gov. Snyder said. “Given his experience in public, private, and non-profit settings, I’m confident he is well-equipped to take on this critical post.”

Brown’s appointment follows the governor’s concurrence that a financial emergency currently exists in the city of Flint after the unanimous recommendation of an eight-member financial review team, which included financial management experts from the public and private sectors.

A preliminary review of the city’s finances found that probable financial stress existed in the city, as the result of several issues, including failure to follow deficit elimination plans, general fund operating losses for the last several years, and recurring cash shortages.

A financial review team was appointed by Gov. Snyder on Sept. 30, 2011. The review team found that a financial emergency exists in Flint and that no satisfactory plan was in place to address the city’s fiscal problems.

Mr. Brown plans to work collaboratively with Flint’s elected officials and community leaders to address the financial emergency and return the city to local control, as quickly and efficiently as possible.

“I believe we can work together to resolve Flint’s financial emergency,” Brown said. “This is my hometown, so this is a personal task. With the available tools, I am optimistic we can work cooperatively to restore fiscal stability to Flint.”

As emergency manager, Brown will also appoint an advisory committee, consisting of one elected city official, one representative of the business community, one citizen of Flint, and up to two persons with relevant professional skills to assist him. Brown will hold regular meetings with the advisory committee.
Brown, who was born and raised in the City of Flint, earned a bachelor’s degree from Western Michigan University and a master’s degree in International Relations from the University of Stockholm.

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.

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