FLINT, Mich. (Michigan News Source) – In 2023, the city of Flint received $170 million from the state of Michigan to help support its underfunded pension system.

Now, in 2025, the state of Michigan is again bailing out the city, this time with a $27 million grant because “the city has struggled to make an actuarial determined contribution given the funding level of the pension system,” according to the state Treasury Department.

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Despite the state bailout, Flint is projecting deficits in its general fund account used to pay for basic city expenses over the next two years. The city revealed the overspending in budget documents it released this week. It projects a deficit of $13.4 million in 2025-2026 and $8.2 million in 2026-27.

As Michigan News Source previous reported, in August 2023, the city of Flint received $170 million from the Protecting MI Pension Grant Program from the state of Michigan. That money was dedicated to the pension system which is underfunded. Flint was awarded $94.7 million from the American Rescue Plan Act (ARPA) and that money must be spent by Dec. 31, 2026.

As of December 2023, the city of Flint’s pension system was 61.6% funded. It was underfunded by $207.4 million.