Municipalities can now apply for financial aid grant

Michigan
School budgets_86703

LANSING (WLNS) — Cities can now apply for financial aid through the Michigan Treasury Department grant.

The Financially Distressed Cities, Villages and Townships (FDCVT) grant program application will remain open until 11:59 p.m. on Thursday Jan. 2, 2020.

Cities must show that they are in financial distress, in accordance with the Local Financial Stability and Choice Act, in order to apply for the grant of up to $2 million.

The Treasury has a total of $2.5 million to award through the FDCVT grant program for the 2020 fiscal year.

The program has a goal of moving communities toward financial stability.

Preference will be given to applications from municipalities meeting one or more of the following criteria.

  • A financial emergency has been declared in the past 10 years.
  • An approved deficit elimination plan for the General Fund is currently in place.
  • Two or more conditions indicating “probable financial distress” currently exist.
  • The fund balance of the General Fund has been declining over the past five years and the fund balance is less than 3 percent of the General Fund revenues.

Due to requirements outlined under state law, school districts are not eligible for funds from this grant program.

For more information about the FDCVT grant program or to download an application, go to www.michigan.gov/revenuesharing.

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