Gov. Snyder Expects Detroit Request For Financial Review
LANSING (WWJ) - According to the mayor himself, avoiding an Emergency Manager in Detroit is high on Dave Bing's list of priorities. But what is Governor Rick Snyder saying about that?
WWJ Newsradio 950 spoke live with our Lansing Bureau Chief Tim Skubick.
"We have this statement from Governor Snyder, quote: 'I want to avoid an Emergency Manager if at all possible'," reported Skubick.
Skubick said that, based on Bing's remarks in a public address Wednesday night, the Governor is "anticipating he [Bing] will be submitting a request for a financial review in the near future."
"Now, that would be the first step toward an Emergency Manager. But, let's make this clear -- it's not automatic," said Skubick. "A review is one thing. Appointing a review team will be easy to do, but the Emergency Manager is a question mark."
A state law passed in March gives financial managers more power when fixing the finances of cities and school districts. This includes the power to dissolve union contracts.
Also in Wednesday's speech, Mayor Bing urged Gov. Snyder to "right one of the historic wrongs."
In 1998, the city made an agreement with the state to lower its income taxes in exchange for a guaranteed level of state revenue sharing funds. While the city followed through on its commitment, Bing said the state did not keep its promise -- adding that the loss of that money -- more than $220-million in revenue -- is enough to eliminate Detroit's current deficit.
Any chance of Detroit getting that cash back?
"If a vote was taken in the legislature tonight to return that money, and this should not be a shock, my guess is the votes are not there," said Skubick. "Does that mean the votes could be there? Of course they could, but the Governor did not address that all in his statement ... I can't even read the tea leaves and get to where he is on that."
Skubick said that the attitude in the legislature is that Detroit will have to do some "major self-help" before Lansing steps in with any additional money.
