Detroit's finances deemed in severe straits

March 22, 2012 at 4:01 PM   |   0 comments

DETROIT, March 22 (UPI) -- A team of financial advisers in Michigan deemed the city of Detroit in serious financial straits but said it would hold off on an outright state takeover.

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.

The team, however, said it would review the new budget plan put together by Mayor Dave Bing and three city council members and send recommendations to Gov. Rick Snyder by Monday, the News 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."

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