Read the Truth In Accounting reports for 10 Michigan cities



A group that advocates for clearer disclosure of retirement liabilities for local governments says 10 Michigan cities are in poor financial condition with unfunded pension and other liabilities that they can't afford and aren't fully showing on today's balance sheets.

The nonprofit group Truth In Accounting claimed in a news release that the "hidden debt" of those cities range from $7 billion for the city of Detroit to $14 million for Kalamazoo.

Other cities on the list with what TIA calls their true debts are: Lansing, $612 million; Flint, $539 million; Saginaw, $318 million; Grand Rapids, $278 million; Midland, $114 million; Battle Creek, $110 million; Jackson, $101 million; and Holland, $43 million.

"Current accounting practices allow for government financials that are neither accurate nor transparent," Sheila Weinberg, chief executive and founder of TIA, said in a news release. "Citizens deserve to know the truth about their city's financial condition, and without this knowledge they cannot make informed decisions ..."

Flint spokesman Jason Lorenz questioned the relevancy of TIA's claims, saying the city is audited and makes quarterly financial reports to the state that detail pension and other liabilities.

Emergency manager Darnell Earley has attempted to cut back on retiree benefits and warned that the city could be driven into bankruptcy without concessions.

Terry Stanton, a spokesman for the state Department of Treasury, said his office "has not reviewed the study and/or its rationale and cannot speak to its validity."

"Treasury has long been concerned about long-term costs and liabilities associated with municipal pension/retirement liabilities," Stanton said in an email to MLive-The Flint Journal. "Through our Office of Fiscal Responsibility, staff works with local units to address these and other financial issues.

"Specific to Flint, city officials have been very clear that they have a significant (Other Post Employment Benefits liability. In fact ... Earley and his staff have taken critical steps to address and reduce long-term OPEB liabilities, but have been sued as a result."

Stanton's email says transparency in government has been a priority for Gov. Rick Snyder's administration both for state finances and for local government "through various statutory requirements."

Weinberg said Michigan isn't much different than other states in that government accounting allows expenses to be left off balance sheets when costs are incurred.

"Pretty much everybody is in this boat," Weinberg said of Michigan compared to the rest of the nation. "It's a game everybody is playing."