Detroit Review Team Finds Big Fiscal Troubles, State Takeover Could Be Imminent
A financial review team has found Detroit faces a cash crisis of epic proportions – and city officials do not have a workable plan to deal with it.
This brings Detroit a step closer to a state takeover.
The Michigan Public Radio Network’s Rick Pluta reports.
The review team determined that there’s been too little progress and 10-month-old consent agreement between the city and the state is not working. The problems include a short-term cash flow and long-term debts.
State Treasurer Andy Dillon led the review.
“We believe there is a financial crisis in the city and no plan to correct the situation,” he says.
Now, it’s up to Governor Rick Snyder to decide whether to order a state takeover. If so, Detroit would be the ninth Michigan city or school district under emergency management.
A law that takes effect at the end of March gives emergency managers sweeping authority. An emergency manager could also decide to take the city into federal bankruptcy court.