Snyder declares financial emergency in Detroit - WSMV News 4

Snyder declares financial emergency in Detroit

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Gov. Rick Snyder has declared a financial emergency in Detroit, a determination that could lead to the appointment of an emergency manager over the city's finances.

Snyder tells The Associated Press on Friday that his decision on whether to appoint an emergency manager will come after the city's 10-day appeals process.

He says Mayor Dave Bing's office already has been notified of a March 12 hearing date.

Snyder says he already has a candidate in mind for the emergency manager position, but declined Friday to release details about that person.

"Additional action is needed to fix the financial crisis in Detroit," Snyder said. "Chronic budget troubles have taken a significant toll on everyday life for citizens in the city. Detroiters deserve to feel safe when they walk down the street, to have their street lights on, to have the bus show up to take them to work. Working together in partnership we can and will develop solutions to fix the city's finances, stop the cycle of overspending and one-time fixes and collectively get Detroit on the path being a great city once again."

The move was all but guaranteed after a review team told Snyder that Detroit was in a financial emergency.

The city has a $327 million budget deficit, more than $14 billion in long-term debt and persistent cash flow issues.

Under Michigan law, the emergency manager is expected to stay in place for at least 18 months. Snyder agreed with a questioner who said that is not enough time to solve the city's problems, but said it should be enough time to implement a plan and put a "structural process" in place.

"The partnership between Detroit and the state has resulted in great things happening in the city, improved schools, a thriving Midtown, new businesses, and a revitalized riverfront," said Snyder, "But we can't allow a continuing fiscal crisis to stand in the way of Detroit's reinvention. Solving the financial problems will lay a solid foundation for future growth and lead to a thriving, vibrant Detroit."

The governor's office is promoting a website for people seeking more information.

Copyright 2013 Associated Press. All rights reserved.

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