All local units of government in Michigan must follow the Uniform Budgeting and Accounting Act, Public Act (PA) 2 of 1968. It requires a balanced budget and compiled data on revenues and expenditures for the past, current, and following fiscal year. Further budgeting methods also apply under the act. Detroit’s Fiscal Year(FY) is from July 1st to June 30th. This means that city budgets go through a process of state approval. The law requires a balanced budget meaning that the state could prevent a city from running a deficit.