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Detroit's financial crisis now in governor's hands

3 years 7 months 6 days ago February 20, 2013 Feb 20, 2013 Wednesday, February 20 2013 February 20, 2013 5:42 AM in News
Source: Associated Press

DETROIT - How to address Detroit's financial crisis is now in the hands of Michigan Gov. Rick Snyder.

A state-appointed review team has determined Detroit is in a financial emergency, saying in a report that "no satisfactory plan exists to resolve a serious financial problem."

The finding means Snyder has 30 days to decide if the city needs an emergency manager to take charge of its finances.

The review team noted Detroit's long-term liabilities, including underfunded pensions, are more than $14 billion and that its deficit could have reached $900 million last fiscal year had it not borrowed enormous amounts of money.

While some fiscal experts believe municipal bankruptcy may be Detroit's only remedy, State Treasurer Andy Dillon is confident answers can be found if the city and state work together.

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