DETROIT – Michigan Gov. Rick Snyder released a statement in response to Detroit Mayor Dave Bing's speech Wednesday evening.
Bing mentioned a 1998 agreement that the city had made with the state based on lowering the city's income tax.
Recommended Videos
Bing called out Snyder, saying the state owed the city millions.
"That loss of more than $220 million dollars in revenue is enough to eliminate Detroit's current structural deficit and compensate for this fiscal year's $45 million dollar shortfall. I am requesting the return of those funds to the City of Detroit," Bing said.
Snyder released a statement in reaction to the address.
"I have consistently said that as we work to reinvent Michigan, the City of Detroit must thrive," Snyder said. "Mayor Bing and I have worked closely over this past year and I remain supportive of the city's efforts to resolve its financial problems.
"As I have said previously on this issue, I want to avoid an emergency manager if at all possible. Based on the mayor's remarks tonight and the severity of the situation he described, we anticipate he will be submitting a request for a preliminary financial review in the near future."
A governor spokeswoman said a preliminary review would be just one step in a longer process "outlined under the state's modernized local government and school district fiscal accountability act. It does not automatically lead or equate to the appointment of a financial review team or an emergency manager."