‘Financial Emergency’ Declared in Detroit
The fiscal crisis plaguing Detroit is now in the hands of Michigan’s governor after a state-appointed review team determined the city was in a financial emergency with “no satisfactory plan” to resolve it.
Republican Gov. Rick Snyder has 30 days to decide if Detroit needs an emergency manager to take charge of its finances and spending, and come up with a new plan to get the city out of its financial mess.
After spending weeks looking at the city’s books, the independent review team released a report Tuesday saying Detroit’s deficit could have reached $900 million last fiscal year had it not borrowed enormous amounts of money. The city’s long-term liabilities, including underfunded pensions, are more than $14 billion.