THREE OAKS — The village president refused to resign Wednesday night or take blame for Three Oaks' more than $300,000 deficit. Two former council members and two outside officials are reviewing the financial records.

They say the problems are a result of careless budgeting. Village President Phil Smith created the budget and passed it onto the council. It didn't include a nearly $300,000 bill due to the state and over-estimated revenue sources by more than $260,000.

"A quarter million dollars in expenditures they just didn't budget," said David Gross, a former council member who now serves on the financial committee.

"We don't have the luxury of time. We are bouncing checks and facing zeros across the ledger," said Chris Siebenmark, another former council member serving on the financial committee.

They say there is no money in the general fund, limited money in the water and sewer fund and a deficit of $362,000 in the streets budget.

The village lost gas tax revenue June 2007. Now, it has two weeks to create a new budget and a plan to eliminate the debt in five years or it could lose more state funding.

But Smith says he'll fix the problem.

The council was presented with recommendations. They included hiring an outside consultant and getting a revenue anticipation loan to last until September when property tax money comes in.

The council did ask for Smith's resignation, which he wouldn't give.