• Governor names team to review Detroit finances

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    Ed Montgomery Announces Recovery Act Award For Detroit Smart Grid ProgramDETROIT (AP) — Michigan Gov. Rick Snyder appointed six people Tuesday to conduct a 60-day review of Detroit’s municipal finances and decide if the state should put an emergency manager in charge of the city’s checkbook, the state Treasury Department says.

    Department spokesman Terry Stanton said the team includes Treasurer Andy Dillon, who determined last week that Detroit’s budget was off track and headed toward a crash.

    The city now is operating under a consent agreement between Mayor Dave Bing and the Snyder administration designed to head off the appointment of an emergency financial manager.

    “My administration has worked, and will continue to work in collaboration, with Mayor Bing and city officials to ensure a revitalized and successful Detroit,” the Republican governor said in a statement. “However, given the financial crisis that continues to grip the City of Detroit, we must move quickly to ensure city residents have continued access to essential services they expect and deserve.”

    Bing said Tuesday’s announcement was “no surprise.”

    “The state had indicated last week that it planned to appoint a financial review team,” the Democratic mayor said Tuesday night. “My administration will continue to focus on my restructuring plan, in cooperation with the City Council, to hopefully eliminate the need for an emergency financial manager.”

    Bing has said he will lay off 400 to 500 city employees in the new year, roughly 5 percent of the workforce.

    Detroit is billions of dollars in debt and has a budget deficit topping $200 million. It’s been meeting payroll and paying bills from millions of dollars in bond money from a state-controlled escrow account.

    Check Out the rest of this article on My Fox Detroit

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