State of Michigan to Review Detroit’s Finances

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Gov. Rick Snyder’s administration has announced a review of Detroit’s finances, a possible first step to the appointment of an emergency financial manager.

State Treasurer Andy Dillon says the review begins Tuesday and will run “parallel to the city’s continuing effort to address its financial problems.” In a statement Friday, he says a review doesn’t mean an emergency manager will automatically be sent to Detroit.

Dillon says the longer the state waits, “the more painful the eventual solutions become.”

Mayor Dave Bing says the move is “unfortunate” but he’s promising full cooperation. City leaders are opposed to state intervention and insist they can solve the problems. Detroit faces a $150 million budget deficit, and a $45 million cash shortfall is projected without cuts.

Bing plans to cut 1,000 jobs.

Mayor Bing issued the following statement:

“While unfortunate, this decision by Governor Snyder is not unexpected. We believe we have the right plan to address the City’s fiscal crisis and we will continue to work with City Council, our unions and other stakeholders to achieve the necessary cuts and concessions, including pension, healthcare and work rule reform. I’m confident with yesterday’s demonstration of solidarity and shared commitment that we will continue to make progress. We are committed to full cooperation with the Governor’s fiscal team, who has had full access to the City’s financial information and plan for months.”

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