The state-appointed team reviewing the city's finances said Detroit was in a "severe financial emergency," The Detroit News reported Thursday.
Michigan's laws allow the state to take over a municipality's finances if it is deemed to be in severe trouble. The review team, however, allowed the Detroit City Council to make one more attempt to forge a budget to put the city back on its feet.
"What's accomplished is the review team has passed a motion recognizing the city is in severe financial stress," state Treasurer Andy Dillon said.
"We've made some significant progress, not only between the mayor and the council, but also with the state," City Council President Charles Pugh said.
"We have been very creative and figured out a way for the state to have input, but not control."