Tagged: Detroit financial crisis

It appears that officials might be laying the groundwork for a so-called “managed bankruptcy” in Detroit—though it’s something they hope won’t actually happen.

A process for going through Chapter 9 municipal bankruptcy is laid out in the state’s new emergency manager law that kicks in next month. And it could happen even if Governor Snyder appoints an emergency manager for Detroit.

Both state and city officials used to say that bankruptcy was completely off the table for Detroit.

Every American city has its miserable parts.

Forbes Magazine says there are just more miserable parts to Detroit and Flint than other U.S. cities.

Complete with photos of burned out buildings and cop cars, Forbes Magazine put Detroit and Flint at the no. 1 & 2 spots on its "American's Most Miserable Cities 2013" list.

The 'financial emergency' finding is no surprise to anyone who has been following the city's troubles for the last several years.

The finding clears the way for Gov. Snyder to appoint an emergency financial manager to oversee things in Detroit.

The review team concluded that the emergency exists because "no satisfactory plan exists to resolve a serious financial problem."

Here's the document that supports their conclusion.

Today is the day the State will released the results of its emergency review into Detroit's finances.

Since late last year, a six-member team has taken what's been called "a deep dive" into the city's records to determine just how massive Detroit's money troubles are.

Is getting this report card going to lead to any better cooperation between Mayor Bing and City Council members?

Does the review team offer suggestions for action, or does it just present "the facts" and let the Governor draw his own conclusions?

Michigan Public Radio Network's Lansing bureau chief Rick Pluta talked to us about what to expect from the report.

If you think you've heard this before, you have.

This is the second state review of Detroit's finances.

The first review in 2012 led to a "financial stability agreement" and the installation of a Detroit financial advisory board in the spring of 2012.

We're coming up on the one-year anniversary of that agreement, and the city's finances are anything but stable.

Many expect the review to be poor. More from Michigan Radio's Sarah Cwiek:

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.

Cwiek reports the Governor gave the review team extra time to delve deeper into the city's books - books that could show a long-term debt "estimated at more than $12 billion."

The financial review team will discuss its report to Governor Snyder during a press conference at 4:00 p.m. today on the 14th floor of Cadillac Place, 3044 W. Grand Blvd. in Detroit.

Michigan Radio's Sarah Cwiek will be there and give us a update later today.

Governor Snyder is not expected to attend, but an announcement on an emergency financial manager appointment is expected within the next week or two.

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.