“Financial crisis” declared for Detroit

Posted on: 2:39 pm, March 1, 2013, by

general motors

DETROIT—Michigan’s governor has declared a financial crisis for the city of Detroit.

Gov. Rick Snyder says a state appointed review team found that the city would likely end the fiscal year with $100 million in debt.

It also found that the city will likely accrue $14 billion in long-term disabilities.

He said, “If you think about Detroit, Detroit was the most successful city in the United States for how many years. We put the country on wheels; we put the world on wheels. We’re in the arsenal of democracy and in 1950, Detroit had 1.8 million people. At one point it was recognized as the most prosperous city in the entire United States and you step back and look at that and where we are today. If you go across the country and talk to people, there is probably no city as more financially challenged in the entire United States. If you looked at the quality of services to citizens, it’s ranked among the worst. So, we went from the top to the bottom over the last 50 or 60 years.”

Gov. Snyder says steps have been taken to solve Detroit’s fiscal crisis but it hasn’t been enough to fix the problems.

He said, “Haven’t we had enough of people fighting among themselves or blaming someone or watching declining services and watching people suffer. Now is the time to rally together to say there’s a new better way of doing things and let’s build Detroit and build it as a team and be proud and show the rest of the world that Detroit was the best, we know how to do it. We lost that formula but we can gain it back and do it again.”

Detroit’s Mayor Dave Bing has a 10 day period in which he can request a hearing.

The governor is expected to appoint an emergency financial manager for the city but has a 30 day window to make that decision.

That person would be responsible for determining all of the city’s future spending.