The governor stated that he had reviewed a Financial Review Team report and agreed with their conclusion that there is a fiscal emergency in the city that would likely lead to an emergency financial manager.
“I look at today as both a sad day, a day that I wish would never have happened in the history of the city, but also a day of optimism and promise,” said Snyder.
First, he says the city overestimated its revenues and spent well beyond its means. Second, he says the city “borrowed massively” to address its deficit and cash flow needs. Third, he says Detroit’s long-term debt has ballooned out of control and could reach up to $14.99 billion. The fourth reason deals with a projection that the city would have a cash deficit in excess of $100 million by June 30, 2013.