Financial Advisory Board supports emergency financial manager for Detroit

Clock is ticking for Detroit to get finances in order or emergency financial manager will be recommended

Published On: Dec 10 2012 05:48:38 PM EST   Updated On: Dec 10 2012 06:22:28 PM EST
DETROIT -

The Financial Advisory Board for the city of Detroit has unanimously voted to support starting the clock on deciding whether an emergency financial manager is needed in the city.

The board met Monday and said the growing deficit in the city is alarming. It is expected to be $326 million by the end of the year, and it is expected to balloon to $376 million in 2013.

Related: Detroit mayor continues financial plan despite likely EFM

It's unclear how things will look in 2014, but as of right now, reductions are not even expected until 2015.

"I'm saying if you can only balance revenue and expenses in 2014, you should close the door today," said Financial Advisory Board member Darrel Burk.

Related: Michigan leaders craft emergency manager alternative

State Treasurer Andy Dillon says he's ready to sit down with the city and work on getting the $30 million he's withholding.

"December's milestones were a little more difficult, and today I will go sit down with Chris (the city's project manager) and work through exactly what he is going to ask of council... and how much cash they are going to need to get through the end of December," said Dillon.

Detroit Mayor Dave Bing reacted to Monday's vote with disappointment.

"Everybody talks about partnership, and I'm not so sure that's what we have at this point," said Bing.

Read more: Detroit likely gets emergency financial manager early 2013

A special meeting will be held with Detroit City Council Tuesday to go to work on the milestones the city couldn't get to, and which is leading to that $30 Million being held.