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State Expected To Launch Review Of Detroit’s Finances

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DETROIT (WWJ) – In the next step to a possible move to an emergency manager in Detroit, Governor Rick Snyder is expected to announce a financial review team to look at the city’s finances.

Sources tell WWJ Newsradio 950’s Vickie Thomas the governor will initiate the review as early as Friday.

The move doesn’t mean that an emergency manager will be appointed.  After reviewing the finances over a 30-day period, the team would make a recommendation about what to do next.

Detroit Mayor Dave Bing has said the city needs union concessions to help eliminate a budget deficit, while others in council are urging a more comprehensive approach to battle off possible insolvency.

A state law passed in March gives emergency managers more power when fixing the finances of cities and school districts. This includes the power to dissolve union contracts and to implement cuts without any approvals from city leaders.

A couple of names mentioned as possible emergency managers, if it comes to that, include former Mayor Dennis Archer and former Detroit Public Schools Emergency Financial Manager Robert Bobb.

Both Bing and Snyder have said they want to avoid an emergency manager move.

In a text message sent to WWJ on Thursday, Snyder spokesperson Sara Wurfel said there is no final decision yet; that the issue is still under evaluation.

“Still hoping and urging mayor and city council to come together on shared, viable solution. But timing is getting tougher and is of the essence given severity and urgency of fiscal situation,” Wurfel wrote.

“It’s a series of stages,” Snyder told WWJ earlier this week.

“It’s not to jump to an emergency manager. The first stage, from the state perspective, would be doing a preliminary review, and that’s something that I believe would be a prudent exercises to do in any case,” he said.

“Sources also tell me there has been been a flurry of activity in Mayor Bing’s office as he attempts to rally the troops to beat back any sort of state intervention,” reported Thomas.

Detroit Firefighters Associateion President Dan McNamara said he wants uniformed Detroit police and firefighters to lead a caravan to Lansing.

“We’ll go up there and we’ll say, hey, to whoever’s gonna listen up there, ‘stay out we can fix this stuff’,” McNamara said.

Gov. Snyder, earlier this week, appointed an emergency manager for Flint.

- Catch up on this story -

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