Today’s Free Press reports that the State of Michigan next week will begin a 30 day review process for an emergency financial manager for Detroit.  Why?

The City of Detroit has reached the point where its attempts have failed to stop continued spending of more money than it takes in revenue.  Michigan believes it must now prepare to solve Detroit’s financial problems.  The Free Press cites Michigan Treasury spokesman Terry Stanton as saying that the “state has received reports about the city’s deteriorating financial condition and called the situation  ‘worse than expected.’ ”

dusk in Detroit

Detroit is spending more than it is taking in.  And even at that, the city is unable to provide services needed throughout Detroit; read Kelsie Moreno’s blog about Detroit’s street lights.  Mayor David Bing Tuesday said that Detroit “is at a point now where I don’t think we can cut any more without negative impact on the city’s services.”

Will Detroit finances be Michigan’s business in the new year?

Advertisements