Decision Day: Gov. Snyder expected to announce financial emergency in Detroit

Michigan governor expected to allow 10-day grace period before appointing emergency financial manager in Detroit

By Mara MacDonald - Reporter

DETROIT - Michigan Gov. Rick Snyder has called a Friday news conference in a town hall format to detail his findings in the state review of Detroit's financial situation.

Sources tell Local 4 the expectation is for the governor to announce that a financial crisis exists in Detroit but not name an emergency financial manager on Friday. Local 4 is told what's next will be a 10-day grace period for the city to come up with a workable plan to fix what is a massive structural financial crisis.

Read more: Detroit mayor: Gov. may announce plans for EFM on Friday

Those close to the situation say there is no possible way for Detroit to fix it's long-term liabilities and short-term cash burn without the assistance of an emergency financial manager and possibly a bankruptcy judge.

Expect Snyder to appoint an EFM for the city after the 10-day period is up.

In addition, Local 4 is told the governor has a 90-day plan in place to address some of the immediate financial issues. More will be detailed on the plan on Friday.

As far as who the EFM will be, the governor hasn't been shy in saying he has been turned down by several high-profile candidates. Detroit Mayor Dave Bing says he is ready to work with Lansing to fix the laundry list of problems.

Detroit's City Council has members who are split. Some are talking about possibly suing to stop state intervention while others say the numbers and scope of the problem are clear and they vow to help.

"I want it to work," said City Council President Pro-Tem Gary Brown. "While that wouldn't be my recommendation, if the governor decides to do it, you know, I live in this city. I've lived here all my life. I want it to work because I want Detroit to work."

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