Michigan city faces payroll crunch
City officials in Flint, Michigan, have notified lawmakers that the city has only enough cash on hand to meet payroll through mid-April, WJRT-TV reports. City officials originally expected the city to run out of funding by the end of March, but Flint's finance director Michael Townsend told the station that the city could afford another payroll period or two.
As a result, the city will go to state officials and request a new stabilization bond that will help the city meet its financial requirements. If the state does not approve the bond, Townsend says the city will fall short of its payroll requirements by the end of next month. Nevertheless, city administrator Greg Eason told WJRT he believes the state will find a way to help.
"If we should receive that response, it would put us in the position that we should be able to get off of this major situation that we're in for about a good year and a half," Eason told the source.
Currently, Flint faces a $17 million budget deficit and is saddled with an 11.8 percent unemployment rate. Eason told WJRT he is trying to acquire another $4 million in union concessions.
As a result, the city will go to state officials and request a new stabilization bond that will help the city meet its financial requirements. If the state does not approve the bond, Townsend says the city will fall short of its payroll requirements by the end of next month. Nevertheless, city administrator Greg Eason told WJRT he believes the state will find a way to help.
"If we should receive that response, it would put us in the position that we should be able to get off of this major situation that we're in for about a good year and a half," Eason told the source.
Currently, Flint faces a $17 million budget deficit and is saddled with an 11.8 percent unemployment rate. Eason told WJRT he is trying to acquire another $4 million in union concessions.
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