December 27, 2011
Next Step After Preliminary Review Found "Probable Financial Stress"
Governor Rick Snyder today appointed a financial review team to more closely examine the City of Detroit’s finances under Public Act 4 of 2011, the Local Government and School District Financial Accountability Act.
Appointing the financial review team is just the next step in the process after a preliminary review of Detroit’s finances by the Michigan Department of Treasury resulted in a finding of “probable financial stress” as a result of several issues, including: the failure to adjust annual budgets in the face of declining revenues and/or increased expenditures; recurring fund deficits of more than $100 million; failure to file an adequate or approved Deficit Elimination Plan; failure to follow past Deficit Elimination Plans; and recurring cash shortfalls that could lead to a negative cash balance as early as April, 2012. The appointment of a financial review team does not ensure that a financial emergency will be declared or that an emergency manager will be appointed.
“My administration has worked ? and will continue to work ? collectively and collaboratively with Mayor Bing and city officials to ensure a revitalized, strong and successful Detroit,” said Gov. Rick Snyder. “The mayor, city council and stakeholders are making some important progress in developing a viable financial recovery plan for the city, but given urgent and time-sensitive financial issues facing Detroit and the need to ensure critical services continue to be provided to city residents, the next step simply necessitates the appointment of a financial review team. This review team is the right mix of expertise and backgrounds to tackle this very challenging job and ensure a thorough, objective and fact-based review.”
Review team members are:
Representing members required by P.A. 4
- Andy Dillon, state treasurer (State Treasurer or designee)
Dillon was appointed Michigan's 44th State Treasurer by Gov. Rick Snyder. Prior to becoming Treasurer, Dillon served three terms in the Michigan House of Representatives, where he was elected by his colleagues to serve as Speaker of the House during his final two terms. Prior to elected office, Dillon served as the managing director of Wynnchurch Capital, vice president of GE Capital, and worked as a financial analyst at WR Grace. Dillon also practiced law for seven years. He holds accounting and law degrees from the University of Notre Dame.
- Doug Ringler, director, Office of Internal Audit Services in the Department of Technology, Management and Budget (DTMB Director’s designee)
Ringler is the chief audit executive and director DTMB’s Office of Internal Audit Services, where he’s served since 2008. He previously worked in the state’s Office of Financial
Management and Office of Auditor General. He holds a bachelor’s degree from Ferris State University. He is a certified public accountant and certified internal auditor.
- Dr. Irvin Reid, retired president of Wayne State University (nominee of the Senate Majority Leader)
Reid retired as president of Wayne State University in 2007. Prior to joining WSU in 1997, he was president of Montclair College in New Jersey. Reid also spent several years at the University of Tennessee-Chattanooga where posts included professor of economics and business administration, head of the Department of Marketing and Business Law, and dean of UT’s School of Business Administration. He also worked for the U.S. Consumer Product Safety Commission and the National Aeronautics and Space Administration (NASA). Reid earned bachelor’s and master’s degrees in general/experimental psychology from Howard University, a master’s degree and doctorate in business and applied economics from the Wharton School of the University of Pennsylvania, and a certificate in educational administration from Harvard University.
- Dr. Isaiah “Ike” McKinnon, retired chief of police, city of Detroit (nominee of the Speaker of the House of Representatives)
McKinnon has more than 39 years of experience in the public and private sector,
education, law enforcement, and private security. Since his retirement as chief of police for the city of Detroit, he has hosted a Detroit-area television program, “Stay Safe With Ike” and his motivational, inspirational, and educational presentations are heard by audiences nationally. McKinnon holds a bachelor’s degree from Mercy College of Detroit, a master’s degree in criminal justice from the University of Detroit, and a doctorate in philosophy from Michigan State University. In addition, he is a graduate of the FBI Academy in Virginia and the U. S. Secret Service Dignitary Protection School in Washington, D.C.
Representing persons with relevant professional experience
- Conrad Mallett, president, DMC Sinai Grace
Mallett has been president and CEO of Sinai-Grace Hospital since 2003. Prior to his current position, he served as chief administrative officer of the Detroit Medical Center, president and general counsel of La-Van Hawkins Food Group LLC, and chief operating officer for the City of Detroit. Mallett was a justice of the Michigan Supreme Court from December 1990 to January 1999 and served a two-year term as chief justice, the first African-American to hold the position. He received a bachelor’s degree in English from the University of California-Los Angeles and master’s in public administration and law degrees from the University of Southern California.
- Jack Martin, certified public accountant
Martin is founder and chairman of Martin, Arrington, Desai & Meyers, P.C. and has 40
years of experience in both the public and private sectors. Martin was chief financial officer
for the U.S. Department of Education after serving as CEO and managing director of Jack
Martin & Co. Certified Public Accountants and Consultants and acting CEO
of Home Federal Savings Bank of Detroit. Martin is a certified public accountant
and member of the American Institute and Michigan Association of Certified Public
Accountants. Martin holds bachelor’s and master’s degrees from Wayne State University and did post-graduate work in labor economics at the University of Minnesota. Martin is also a veteran of the U.S. Marine Corps.
- Dr. Glenda Price, president emeritus of Marygrove College and member, Compuware Corporation Board of Directors
Price, president emeritus at Marygrove College, served as Marygrove’ president from 1998 through June 2006 and has been on the Compuware Corporation’s Board of Directors since 2002. Prior to Marygrove, she was provost at Spelman College in Atlanta, Georgia from 1992 to 1998. Price also served as interim president of the Michigan Colleges Foundation and director of LaSalle Bank Corporation from 2002 to 2008. She holds several degrees from Temple University, including a bachelor’s in medical technology, a master’s in educational media and a doctorate in educational psychology.
- Shirley Stancato, president, New Detroit
Stancato is the CEO of New Detroit, whose mission is to improve race relations in Southeast Michigan. Prior to joining New Detroit, Stancato enjoyed a long career at what is now Chase Bank, where she rose to the rank of senior vice president. She has received numerous awards throughout her career, including the Distinguished Leadership Award from the National Association of Community Leadership, Crain’s Detroit Business 100 Most Influential Women, and the Detroit News Michiganian of the Year. Stancato is a graduate of Cass Technical High School and earned both a bachelor’s degree in sociology and master’s degree in industrial relations from Wayne State University.
Representing state officials with relevant professional experience
- Frederick Headen, director of the Michigan Department of Treasury’s Local Government Services Bureau
Headen has served with the Local Government Services Bureau position since 1997. He also served as acting chair of the State Tax Commission. Prior to joining Treasury, he worked as legal counsel for the Citizens Research Council. He received a bachelor’s degree in political philosophy and a master’s degree in labor and industrial relations both from Michigan State University, and a law degree from Thomas M. Cooley Law School in Lansing.
- Brom Stibitz, senior policy advisor for the Michigan Department of Treasury
Before his senior policy advisory role, Stibitz worked as legislative director for House Speaker Andy Dillon and as appropriations coordinator and policy analyst for the House of Representatives. He received his bachelor’s degree in biology from Kalamazoo College and his master’s degree in public administration in state and local government from Northern Michigan University.
Under P.A. 4 of 2011, a financial review team must report its findings to the governor within 60 days, unless a 30-day extension is requested and granted or the governor requests a quicker review. The review team must reach one of the following conclusions in its report: No or mild financial stress exists in the unit of local government; severe financial stress exists in the unit of local government; or, a financial emergency exists in the unit of local government.
For more information about PA 4, visit the Local Government Fiscal Health page on the Department of Treasury’s Web site at www.michigan.gov/treasury.
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