Detroit in financial emergency, review team says

A review team appointed by Michigan Gov. Rick Snyder to analyze Detroit’s financial situation unanimously determined Tuesday that the city is in a financial emergency and has “no satisfactory plan” to resolve the crisis.

“While we appreciate the steps the city has taken over the past number of weeks, key reform measures have not occurred quickly enough, if at all,” State Treasurer Andy Dillon said. “The team collectively believes the city needs assistance in making the difficult decisions necessary to achieve the significant reforms that are so crucial to the city’s long-term viability.”

Detroit faces a $327 million budget deficit in the current fiscal year.

Several named candidates for Detroit emergency manager have publicly said they do not want the job to mediate the city’s financial woes, the Detroit News reports.

“The question is, what is the governor going to do?” City Council President Charles Pugh told reporters, adding “there are review team members who are not recommending an emergency manager.”

Mr. Snyder has up to a month to examine the report and decide whether he finds that Detroit “is in a financial emergency and requires the appointment of an emergency financial manager with the power to tear up and redo labor contracts, among other powers,” The Detroit News reports.

If Snyder moves ahead and appoints an emergency manager, Detroit would be the sixth and largest city in Michigan to have one. The cities of Benton Harbor, Ecorse, Pontiac, Flint and Allen Park are currently under state oversight. School districts in Detroit, Highland Park and Muskegon Heights also have managers.

• This article is based in part on wire service reports.

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