The gears of state government continue moving closer to the appointment of an emergency financial manager for Michigan's largest city.
The governor received formal notice from Treasurer Andy Dillon that a preliminary review of Detroit's ledgers has found a "serious financial problem," Matt Helms reports in the Free Press. That step lets the state assign a financial review team to comb through Detroit's books more closely to determine whether an emergency financial manager should take charge.
Dillon told Snyder of the finding late Friday afternoon, Treasury spokesman Terry Stanton said. The decision came just days after Dillon notified Mayor Dave Bing that the city's cash crisis and plunging revenues had alarmed him enough to begin a preliminary review Tuesday that could bring far deeper state intervention in Detroit's financial affairs than the current consent agreement. . . .
Stanton said it wasn't clear how quickly the state would form the review board, which is made up, by law, of the state treasurer and auditor general and a nominee each of the state Senate majority leader and the House speaker. Stanton said additional members could be named.
A statement from Mayor Dave Bing's office describes the new declaration as "a part of the process." The mayor is quoted as saying: "There is nothing new here. We continue to be focused on our financial restructuring plan."
