FLINT -- Flint Mayor Dayne Walling said he will continue to focus on resolving Flint’s financial problems, despite fears of another state takeover and recently passed legislation that expands the powers of emergency financial managers. Gov. Rick Snyder signed that legislation into law Wednesday evening.
“No change in paperwork in Lansing changes a basic fact about the City of Flint’s finances,” Walling said. The city is in debt more than $17 million. “Our employees need to be willing to take reduced compensation,” he added.
Flint last went under state control back in 2002 when Gov. John Engler ordered a financial state of emergency for the city and appointed Ed Kurtz to run affairs.
There have been eight cases where financial managers have taken over local governments and in the case of Detroit, a troubled school district. Under the new law, state appointed managers can throw out union contracts in the name of cost cutting.
Supporters say the changes were designed to help fix a problem before it worsens. “We’re going to have EFMs who have the tools to get the benefits in balance and straighten out the budget,” said Paul Kersey with the Mackinac Center for Public Policy.
However,Michigan Municipal League Executive Director Dan Gilmartin called it bittersweet. “Now that the Governor and Legislature are considering eliminating all of the statutory revenue sharing that has been promised to local governments, passage of this legislation is bitter sweet at best,” he said.
