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Budget concerns mount at Flint City Hall

Thursday, July 26, 2007

FLINT (WJRT) (WJRT) -- (07/26/07)--Budget concerns are mounting at Flint City Hall. A council member says the city is facing its largest budget deficit since the state takeover five years ago.

New figures released Wednesday to City Council show there's no surplus at all. Instead, the city is facing a $13 million deficit.

But Mayor Don Williamson's administration says their numbers tell a different story.

The numbers released Wednesday by the city's accounting firm took many council members by surprise. Some say the city is clearly in crisis. The mayor's administration says that simply isn't the case.

They are preliminary financial results that some Flint City Council members say cast a frightening light on the state of the budget.

Accounting firm Plante Moran revealed to council a budget deficit of more than $13 million for the 2006-2007 fiscal year.

"It's clear in this document that the revenue has not come into the city like the mayor projected," said Councilman Scott Kincaid.

But these are not the final numbers. Auditors say the city can expect anywhere between $3.5 million to $5 million in additional state revenue and other funds. But that's raising concerns among council members.

"There's not going to be enough revenue with the fund balance to cover the deficit and make the payments -- the garbage trucks, the police cruiser, the jail -- so this mayor's going to have to make some drastic cuts," Kincaid said.

"Those numbers were thrown out last night as money we don't have," said Joe Conroy, the mayor's spokesman. "It's technically the truth but it's not actually the case."

The administration says the numbers are misleading and don't take into account revenue that is expected to arrive.

Conroy says there is no deficit. In fact, he says there is a surplus of more than $4 million. But there will be more tightening of the budget for the current fiscal year.

"In the long term we've got a big fight to make and that's why we are working hard on investing and economic development so this mayor can lead this city out," Conroy said.

There are still quite a few decisions to be made on the current budget. The final numbers on the past fiscal year won't come until December's audit.

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