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Review finds "A serious financial problem" exists in Detroit

State Treasurer Andy Dillon has informed Governor Rick Snyder that a preliminary review has found "a serious financial problem" exists in Detroit.

It's one of the steps toward placing the city under the control of a state-appointed emergency financial manager. The review found the city does not have a plan to address a deficit that could be as high as 122 million dollars in this fiscal year.

The next step is for a second formal review that will probably take place next week.

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987.
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