In Michigan
4:15 pm
Wed December 21, 2011

Detroit review finds "probable financial stress"

LANSING, MI –

Detroit could be closer to a state financial takeover by an emergency manager. Governor Rick Snyder is expected to order an intensive review of the city's books following a preliminary finding of "probable financial stress."

But, as we hear from Michigan Public Radio's Rick Pluta, state officials say they still hold out hope the city can solve its own problems without a state intervention.

State Treasurer Andy Dillon says the state review does not stop Detroit Mayor Dave Bing and the city council from creating their own plan to dig out from the financial crisis. The city is expected to run out of money to pay its bills sometime in April.

Dillon says it's not enough for Detroit or any other city to simply balance its books.

"Part of this is also making sure that the public's health, safety, and welfare is provided for, and that the cities are functioning and providing services," he says.

There are currently five local governments in Michigan run by emergency managers, and at least two more are under review.

A review of the Benton Harbor schools' finances just concluded the district is making progress on its fiscal troubles, and said no action is needed at this time that could lead to an emergency manager.

In a related development, the state Supreme Court agreed Wednesday to decide whether Detroit Public Schools emergency manager Roy Roberts should be removed for failing to take the oath of office before he started the job.