The state is conducting a preliminary financial review of the Pontiac School District.

The financial review is one of the first steps the state has to take in a process that could lead to the appointment of an emergency manager.

The Pontiac district, with a $24 million deficit, has struggled recently. State Superintendent Mike Flanagan last month rescinded his approval of the district’s deficit elimination plan – an act that led to the withholding of the district’s April state aid payment of $1.25 million. Jan Ellis, spokeswoman for the Michigan Department of Education, confirmed the preliminary review, saying a letter would be sent to the district this afternoon.

At the conclusion of the preliminary review, Flanagan could opt to ask Gov. Rick Snyder to appoint a financial review team.

Pontiac’s Interim Superintendent, Walter Burt, said in a statement today that the preliminary review will be a meeting between the district’s administration and officials from the Michigan Department of Education.

“The purpose is to determine the extent to which we are taking steps to ensure we are in compliance with our deficit elimination plan,” Burt said.

The district must cut $20 million from its deficit by the end of the next school year.

“We are very confident that by the end of June 2013, we will have exceeded our targeted goals,” Burt said.

Contact Lori Higgins at 313-222-6651, at lhiggins@freepress.com or via Twitter @LoriAHiggins