State Auditors to submit findings on Detroit Monday
City faces $45M cash shortfall
DETROIT – In Detroit on Monday, Michigan Gov. Rick Snyder said he hopes the city can pull together to manage its financial crisis.
The state is doing a preliminary review of the city's finances, which is the first step in a process that could result in the appointment of a financial manager for the city.
"They're still writing the report. If you looked at the treasurer's write up, to me, there are some serious issues out there. And the question is, have they been resolved since they started their work? Doubtful," Snyder said. "So, I'm going to wait for the report. The next natural step would be a formal review."
Detroit has an accumulated deficit of about $150 million and faces a $45 million cash shortfall. The state said a preliminary financial review does not automatically mean that a financial emergency will be declared or an emergency manager will be appointed.
"My role is not to run the city of Detroit. And my preference is to clearly avoid a financial manager," Snyder said. "So, I really encourage the mayor and the city council together to work together, to work with us and any other party that can help to get a consent agreement, to get a solution in place that's for the long term."
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