Review Team Says Hamtramck In Financial Emergency

HAMTRAMCK (WWJ/AP) – A state review team says there’s a financial emergency in Hamtramck, a step that could lead to Gov. Rick Snyder appointing a manager to take over the reins of government in the Detroit enclave.

Snyder last month asked for a review of Hamtramck’s finances. City officials earlier sought a preliminary state review.

In a report Thursday, the review team estimates the city of 22,000 will have a $3.3 million deficit in its $16 million general fund budget by June 30. The Detroit News reports the review team also says Hamtramck has had a structural budget deficit for three years.

Under Michigan law, an Emergency Manager has the power to develop financial plans, renegotiate labor contracts, revise and approve budgets to help control spending, sell off some city assets and suspend the salaries of elected officials.

Emergency managers now run Detroit, Flint, Pontiac and three other Michigan cities, plus three public school districts

Michigan took over Hamtramck in 2000 because of debt. State control ended in 2007.

Opponents have framed emergency manager appointments as hostile takeovers, that attack organized labor and democracy — why Snyder says it’s a necessary step in a financial crisis.

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(TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

  • Snyder Appoints Emergency Manager For Hamtramck « CBS Detroit

    […] June 3, Snyder determined there was a financial emergency in Hamtramck. Its general fund balance slipped from $2.7 million in 2011 to a negative $582,000 a year […]

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