The Local Emergency Financial Assistance Loan Board (ELB) today, named Joseph
L. Harris Emergency Financial Manager (EFM) for the City of Benton Harbor,
effective immediately. Harris, a Certified Public Accountant, has ten years of
high-level, local government management experience and has been an Adjunct
Accounting Professor at three Michigan universities, currently teaching
governmental accounting at Wayne State University.
The ELB appointment follows Governor Jennifer M. Granholm's confirmation that
a financial emergency currently exists in the City of Benton Harbor, pursuant to
the Local Government Fiscal Responsibility Act (PA 72 of 1990). The governor
reached that conclusion in February, based on a recommendation by a Financial
Review Team, appointed to review Benton Harbor's finances.
A preliminary review of the city's finances began in August, 2009 following a
written request from then Benton Harbor City Manager Richard Marsh. The
preliminary review found that a serious financial problem existed in the city
resulting from several issues, including significant general fund operating
deficits, failure to timely file annual financial audit reports, and failure to
distribute property taxes in a timely manner.
A seven-member Financial Review Team was appointed by Governor Jennifer M.
Granholm on November 30, 2009. The Financial Review Team, which included
financial management experts from the public and private sectors, found that a
financial emergency existed in Benton Harbor, because no satisfactory plan was
in place to address the city's financial problems. The governor confirmed the
Review Team's findings in February and directed that an Emergency Financial
Manager be appointed.
For more information on the Local Government Fiscal Responsibility Act,
including an explanation of the PA 72 process, visit Treasury's Web site at
www.michigan.gov/treasury and
select the Local Government Services button.
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