State reviewing Flint's finances under controversial emergency financial manager law

[marmar]

FLINT, Michigan — The state treasurer's office will begin a preliminary financial review in Flint, the first city to undergo such a step under the newly revised and controversial emergency financial manager law.

The review process, which has several steps, starts Monday and could end in a number of ways, including a state takeover of the city's finances. It also could end with a so-called "consent agreement" between the city and state, which would grant a local official expanded powers to manage the city's finances.

Flint Mayor Dayne Walling was notified of the review in a letter from State Treasurer Andy Dillon, Walling said this afternoon at a press conference at Flint City Hall. The letter was also sent to Gov. Rick Snyder, he said.

He said his administration is cooperating with the review and says he's optimistic the city will avoid having the state appoint an emergency financial manager. .............(more)

The complete piece is at: http://www.mlive.com/news/flint/index.ssf/2011/08/state_starts_preliminary_revie.html