A state-appointed team of experts unanimously concluded yesterday that Detroit faces a fiscal emergency, leaving Governor Rick Snyder (R) with a controversial decision whether to appoint an emergency financial manager to force changes, Reuters reported yesterday. Michigan's treasurer, Andy Dillon, who was part of the six-member review team, said that he did not expect the city to be forced into filing for bankruptcy. The review team appointed by Snyder said that Detroit, which has been hemorrhaging cash amid a declining population and a decimated economy, has not made the financial decisions that will put the city on a path to recovery. The report did not officially recommend the appointment of an outside manager, although Dillon said the review team believes one is needed. The team, however, felt the decision should be left up to Snyder, he said.
For more information on Detroit’s financial distress and other chapter 9 topics, be sure to pick up a copy of ABI’s Municipalities in Peril: The ABI Guide to Chapter 9, Second Edition.