Governor Rick Snyder of Michigan on Friday declared a fiscal state of emergency in Detroit in a move that could lead to the appointment of a financial manager who could file for the largest municipal bankruptcy ever.Read the rest here.
Snyder's decision allows the city a 10-day grace period to formulate a plan to fix its finances before the governor reconsiders appointing an emergency manager who would likely drastically reduce services.
The Republican governor said he had identified a top candidate for the position, but he declined to name the person.
"I believe it's appropriate to declare the city of Detroit in financial emergency," Snyder said at a forum in Detroit.
Snyder said he agreed with a Feb. 19 report by a six-member team of experts that concluded Michigan's largest city is in dire financial shape and a plan put in place last April to aid Detroit was not sufficiently working.