Michigan says more than one-fifth of local governments have an underfunded pension plan, retirement health care plan or both.
The Treasury Department on Monday issued the results of an initial round of reporting required under a new law.
More than 110 out of 490 locals units of government that responded will undergo further review.
The tally will grow once local governments with fiscal years ending later report in coming months.
Plans identified as underfunded can get a waiver if they are addressing the underfunding. Otherwise, they will submit corrective action plans to a new board appointed by Gov. Rick Snyder. The board will first meet in May.
Deputy Treasurer Eric Scorsone says Michigan is collaborating with communities to help ensure that benefits are delivered and to maintain communities' fiscal health.