Gov. Rick Snyder declares financial emergency in Allen Park

Determination based on finding from independent review team

Published On: Sep 07 2012 02:47:36 PM EDT   Updated On: Sep 07 2012 07:05:13 PM EDT

Michigan Gov. Rick Snyder on Friday announced that a financial emergency has been declared in Allen Park.

Snyder said the determination was made after an independent six-member financial review team dug into the city's budget.

“We are committed to helping Michigan’s struggling communities, and while declaring a financial emergency in Allen Park is not a decision we like to make, it is a necessary one to restore the city’s financial stability and put it on a path to success,” Snyder said.

Under Public Act 72 of 1990, the City of Allen Park has 10 days to request a hearing before the governor or his designee. Should that condition not be met the Emergency Loan Board would be directed to manage the emergency.

In his letter to the City of Allen Park, Snyder cited the following conditions, found or confirmed to be in existence by the review team, following its discussions with City officials, the City’s audit firm, and other relevant sources:

If the city requests a hearing before the Governor or his designee, it will be held on Sept.19 at the Richard H. Austin Building in Lansing.

Public Act 4 of 2011, the Local Government and School District Fiscal Accountability Act, was suspended in August due to a pending referendum to be voted on in November. Attorney General Bill Schuette issued a formal opinion on Aug. 6, stating that, upon suspension of PA 4, "1990 PA 72 is revived until certification of the November 2012 general election results."