April 28, 2008
April 28, 2008
LANSING - Governor Jennifer M. Granholm today announced that she has appointed a financial review team to examine the city of Pontiac's finances under the Local Government Fiscal Responsibility Act, Public Act 72 of 1990.
The review team must report its findings to the governor within 60 days unless granted a one-time 30-day extension.
Under the law, a financial review team must reach one of three potential findings: a serious financial problem does not exist; a serious financial problem exists, but a consent agreement containing a plan to resolve the problem has been adopted; or, a local government financial emergency exists, because no satisfactory plan exists to resolve the serious financial problem.
Review team members include:
Frederick Headen, director, Local Government Services Bureau, Michigan Department Treasury (designee of the state treasurer);
Scott M. Strong, deputy auditor general (designee of the auditor general);
Robert Daddow, deputy Oakland County executive (designee of Senate Majority Leader);
Tim Witteboert, attorney (designee of the Speaker of the House);
Douglas C. Drake, senior policy consultant, Public Policy Associates; Tom Clay, former deputy state budget director; Nick A. Khouri, vice president/treasurer of DTE Energy and former chief deputy state treasurer; and Marcel Pultorak, former city of Dearborn finance director (designees of the governor).
The Department of Treasury conducted a preliminary review of the city's finances last summer at the request of Mayor Clarence Phillips. While the review found that a serious financial problem existed, the mayor and city council were urged to work together to address the problem with assistance from Deputy State Treasurer Valdemar Washington. While some progress has been made, including potential budgetary savings and spending reductions identified, a comprehensive agreement has not been reached.
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