(Reuters) - Michigan would tap its $575 million fiscal 2015 budget surplus to cover costs related to Flint's water crisis, a spokesman for the state's budget office said on Thursday.
Kurt Weiss said that Budget Director John Roberts expects to ask the legislature this month for an appropriation to help Flint with short-term costs related to the city's lead-contaminated drinking water.
The financially strapped city was under the control of a state-appointed emergency manager when it switched its source of tap water to the nearby Flint River in April 2014 from Detroit's water system to save money.
Flint, about 60 miles (100 km) northwest of Detroit, returned to using Detroit water in October after tests found some children had elevated levels of lead in their blood and lead was found in higher-than-acceptable levels in the water.
Lead levels were still "well above" the acceptable federal level in many homes, city officials said last month. Governor Rick Snyder this week sent the Michigan National Guard to distribute bottled water and other supplies to residents.
Flint residents left with bills for water declared undrinkable due to lead contamination filed a lawsuit in state court on Jan. 7 against Snyder, the state, the city and other officials.
The lawsuit filed in Genesee County court, which includes Flint, seeks class action status covering all residents. Other Flint residents late last year filed a federal lawsuit accusing the city and state of endangering their health.
Michigan's plan for funding Flint's water-related costs came as state officials set revenue estimates for the current and next fiscal years. For fiscal 2016, which began on Oct. 1, the estimate for the state's general and school funds was set at $22 billion, $149 million lower than a projection made in May. Fiscal 2017 revenue was pegged at $22.7 billion.