October 31, 2002

The Local Emergency Financial Assistance Loan Board has received a Fiscal Recovery Plan submitted by Highland Park Emergency Financial Manager Ramona Henderson Pearson. Over the next several weeks, Department of Treasury staff will be reviewing the documents on behalf of board members, State Treasurer Douglas B. Roberts, State Budget Director Don Gilmer, and Consumer and Industry Services Director Noelle Clark. Department of Treasury spokesman Terry Stanton says a key ingredient in Ms. Henderson Pearson’s Fiscal Recovery Plan would require legislative action. "We will carefully review the plan we received this week," Stanton said. "But, it’s important to note that any proposal to modify the Fiscal Stabilization Act (PA 80 of 1981) which allows local units to issue bonds to pay off debt, would have to be addressed by the legislature. Another important consideration is the fact that issuing additional bonds would simply increase debt service for a city that is already financially strapped."

As for another part of the Highland Park proposal, which calls for the State Police to provide local law enforcement in the city, Stanton says Ms. Henderson Pearson has repeatedly been informed that use of the State Police is not an option. "Our position has not changed. Public safety services in Highland Park have been, and should remain, a matter of local law enforcement. The State believes the Emergency Financial Manager has other local options at her disposal, such as contracting with the Wayne County Sheriff's Department."