Governor Rick Snyder has scheduled an
announcement for Noon today at the Detroit Public Television offices – and
sources claim it is to formally declare a financial emergency in the City of
Detroit.
While this announcement will set the stage for the appointment of an emergency financial manager, reports indicate that the individual appointment will not be made for at least another week. Under the current statute, the City of Detroit has 10 days to appeal the declaration of a financial emergency.
Last week, Governor Snyder was presented with
the findings of the financial review team that had been dispatched to the City.
The review team’s report recommended the declaration of a financial emergency
and the appointment of an emergency manager. The report outlined a cash deficit
set to hit $100 million by June 30th of this year, long-term
liabilities of more than $14 billion, a 2011-2012 fiscal year budget deficit of
more than $325 million and a government structure preventing change.
The report indicated the most striking number
was what the City’s overall, cumulative deficit would be had long-term
borrowing not been used to conceal annual deficits: $937 million.