Detroit consent agreement

To challenge or not? Detroit's elected officials struggle for response to Governor Snyder

Sarah Cwiek — Tue, 05 Mar 2013 20:42:54 +0000

Detroit city officials are struggling to come up with a unified response to Governor Snyder’s decision to appoint an emergency financial manager.

They now have less than a week to decide if they want to challenge that. If they do, Governor Snyder has said a hearing will be held March 12.

Most members of the City Council want to at least pursue a public hearing challenging Snyder’s decision. But several say that’s difficult because Detroit mayor Dave Bing hasn’t publicly declared his position.

State report on Detroit's finances expected to outline grim choices

Sarah Cwiek — Tue, 19 Feb 2013 01:27:16 +0000

We should know more about Detroit’s grim financial situation on Tuesday.

That’s when Governor Snyder is expected to receive a long-awaited report on the city’s finances.

A state-appointed review team began the process in December. Governor Snyder gave the group an extension because he wanted them to take a deep dive into Detroit’s long-term debt--estimated at more than $12 billion.

Snyder's office declined comment on Monday. But speaking to reporters a couple of weeks ago, the Governor said he’ll move quickly after he gets the report.

“It will probably take a week or two for me to make a full analysis of the report, and then decisions will be made,” Snyder said. “My reputation is not one to be sitting on things rather than making decisions.”

It’s widely expected that the report will depict a city on the brink of insolvency, a mayor and City Council unable to handle it—and suggest further state intervention.

Detroit has had a “financial stability agreement” with Lansing for nearly a year, but the city’s financial picture has only worsened since then.

Snyder has acknowledged interviewing candidates to potentially serve as the city’s emergency manager.

As Snyder ponders emergency manager, an ongoing struggle to keep Detroit afloat

Sarah Cwiek — Tue, 12 Feb 2013 04:10:14 +0000

Detroit can just barely avoid running out of cash this fiscal year--if it implements some key measures.

That’s what the city’s finance officials told its financial advisory board on Monday.

The premise to avoid insolvency involves some immediate cuts, some deferred payments—and a few big “ifs.”

Some of those measures are so-called “structural changes,” like mandatory furlough days, layoffs, and possible pension and health care changes. Others defer payments or take one-time opportunities to grab
cash.

Bing and City Council fire Detroit city attorney

Michigan Radio Newsroom — Tue, 08 Jan 2013 21:07:29 +0000

Mayor Dave Bing, with the support of six city council members, has ousted Detroit’s top city lawyer, Krystal Crittendon.

Crittendon, a controversial figure at City Hall, had been criticized by Bing for her opposition to Detroit’s consent agreement with the state.

How much money is in Detroit's bank account? "Nobody really knows"

Sarah Cwiek — Tue, 18 Dec 2012 00:02:21 +0000

A preliminary state review of Detroit’s finances says “financial reporting problems” make it difficult to know where things actually stand.

The report was issued Friday, just days after state treasurer Andy Dillon initiated the process that could lead to an emergency financial manager.

It found Detroit has “significant cash flow problems.” But projections vary from month to month, “making it difficult to make informed decisions.”

Darrell Burks is a member of Detroit’s Financial Advisory Board, an appointed body mandated by Detroit’s consent agreement with Lansing.