Flint Review Team Submits Report to Governor Engler

Contact: Terry Stanton (517) 335-1356

April 26, 2002

An eight member Review Team, appointed to consider the financial situation facing the City of Flint, today submitted its report to Governor John Engler. The Review Team, named by the Governor on March 27, 2002, has determined that a serious financial problem does currently exist in the city, relative to Flint's fiscal year 2002 deficit as well as an increasing cumulative deficit. In addition, the Review Team is recommending the appointment of an emergency financial manager. State Treasurer Douglas B. Roberts, chair of the Review Team, says members worked diligently to examine the city's finances and in the end reached a unanimous decision. "I'd like to thank the members of the review team for their efforts in determining the seriousness of Flint's economic difficulties." According to Roberts, it's also important to recognize the candor displayed by city officials and representatives who were asked to speak before the Review Team. "Their willingness to look a difficult situation 'straight in the eye' is much appreciated."

The Review Team's report shows a significant deterioration in the city's General Fund between June 30, 2000, and June 30, 2001. The report also indicates Flint's budget deficit will continue to grow, coupled with a further drop in the city's pooled cash reserve. In addition, the city has not adhered to the deficit reduction plan it filed with the State in August 2001.