LANSING, Mich. ‒ Gov. Rick Snyder today announced his determination that the city of Detroit is in a financial emergency and that no satisfactory plan exists to resolve it. The Governor reached his conclusion after thorough review and consideration of the unanimous, independent review team’s report, which he received on Feb. 19, 2013, under Public Act 72 of 1990 (Local Government Fiscal Responsibility Act).
“Additional action is needed to fix the financial crisis in Detroit,” Gov. Snyder said. “Chronic budget troubles have taken a significant toll on everyday life for citizens in the city. Detroiters deserve to feel safe when they walk down the street, to have their street lights on, to have the bus show up to take them to work. Working together in partnership we can and will develop solutions to fix the city’s finances, stop the cycle of overspending and one-time fixes and collectively get Detroit on the path being a great city once again.”
The city now has 10 calendar days to request a hearing before the governor or his designee. If requested, the hearing would take place at the Richard H. Austin Building in Lansing, on Tuesday, March 12, 2013. Following the hearing, or after the 10-day period expires, the governor will confirm or revoke his original determination. If confirmed, the management of the emergency would be assigned to the Local Emergency Financial Assistance Loan Board, who would be charged with appointing an Emergency Financial Manager or EFM.