DETROIT (WWJ) – Speaking live on WWJ, State Treasurer Andy Dillon said his emergency review team will spend two or three days in Detroit and he expects a decision on whether there is financial stress in the city before the 30-day period ends next month.
“There’s two problems. One is financial, that has both the short-term cash crunch as well as the balance sheet problem, and then there’s operational problems… They have over $10 billion of debt and have been running over $100 million deficits every year,” said Dillon.
Hear Dillon’s full interview:[cbs-audio url=”http://nyc.podcast.play.it/media/d0/d0/d0/dZ/dE/dG/dU/ZEGU_3.MP3″ name=”State Review of Detroit’s Finances” artist=”Andy Dillon Interview”]
If necessary, a formal review team would follow-up the review for another 30 days of inspection, but Dillon said he doesn’t see Detroit having to file for bankruptcy.
“I think Detroit is fixable,” said Dillon. “You do see the City Council and the mayor and labor all coming together, so they know that they’ve got about 45 days to come up with a plan that keeps us from taking the next step of a formal review.”
Dillon said the window for fixing Detroit, if there was an emergency manager, would be six months or so.
“I hope that the Council and the mayor and labor unions can negotiate their own deal, that would be ideal,” said Dillon. “But if not, I’m very confident that our relationship with the mayor and City Council is good enough where I think we can negotiate a consent agreement that will provide the city a path to avoid emergency.”
Dillon said in the end, it’s about the residents having a quality of life and having the services they deserve.
“That they can get access to transportation, that their kids can get to school, that they’re safe in the neighborhood, and if there’s a fire, that there’s a fire department that can put out the fire,” said Dillon.
Detroit Mayor Dave Bing has promised full cooperation, but has said Detroit should be run by Detroiters.