Michigan Gov. to Declare Detroit Fiscal Emergency

Thursday, 28 Feb 2013 07:05 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Michigan Governor Rick Snyder will officially declare a financial emergency for Detroit on Friday, paving the way for a state takeover of the city, a state government source said on Thursday.

At a forum in Detroit, the Republican governor will endorse the Feb. 19 findings of a six-member review team that concluded the city's dire financial situation constituted an emergency, according to the source, who asked not to be identified.

Sara Wurfel, Snyder's spokeswoman, said the governor will outline "his determination on whether or not there is an emergency."

The official declaration of an emergency for Michigan's biggest city will trigger a 10-day deadline for Detroit officials to request a hearing with Snyder. It will likely result in the appointment of an emergency financial manager to manage its fiscal affairs.

The review team said the city is plagued by "operational dysfunction," but made no official recommendation on the need to appoint an emergency financial manager, leaving that to the governor.

Detroit, which has been struggling for years with a falling population, shrinking tax base and large payroll for city services, has been operating since April 2012 under an agreement that gave the state some oversight. But the slow pace of reforms led Snyder to launch a new review of the city last December.

If the state decides to appoint an emergency financial manager, that person could decide the city's only course for survival would be a bankruptcy filing in what would become the largest municipal bankruptcy in the United States.

The emergency manager would be officially chosen by a state board composed of the state treasurer, budget director, and licensing and regulatory affairs director - all of whom are Snyder appointees.

Snyder has publicly discussed qualifications he would seek in the manager and has said he had a short list of candidates for the job.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

NC Court Releases Money in Halted School Voucher Program

Friday, 19 Sep 2014 15:27 PM

About 1,900 North Carolina students will be allowed to receive public money to attend private schools despite a finding  . . .

New EPA Water Rules Bring Beer War to a Head

Friday, 19 Sep 2014 14:20 PM

The beer industry is battling over a new Environmental Protection Agency regulation that gives the agency regulatory pow . . .

Al Jazeera Says Gore Isn't Entitled to $65 Million in Escrow

Friday, 19 Sep 2014 14:06 PM

Al Jazeera Satellite Network fired back at Al Gore, claiming in a lawsuit that the former U.S. vice president isn't enti . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved