facebook
twitter
search
search

Detroit declared in 'financial emergency'

Feb. 20, 2013 at 10:17 AM

DETROIT, Feb. 20 (UPI) -- A review team in Michigan has found the city of Detroit in a financial emergency but the state treasurer has ruled out a bankruptcy filing at this time.

Michigan State Treasurer Andy Dillon, who led the review, said he doesn't think Detroit should go through a Chapter 9 bankruptcy to cure its financial ailments, The Detroit News reported Wednesday.

Dillon said long-term borrowing has allowed the city to mask over annual deficits ranging from $155.4 million to $221.9 million since fiscal year 2005.

Without the borrowing, the report by the review team said the deficits would total $937 million in fiscal year 2012.

"We believe there is a financial emergency in the city and that there's no plan to correct the situation," Dillon said, adding that Detroit's problems are fixable.

Detroit's long-term liabilities, including unfunded pension obligations and retiree healthcare, exceeded $14 billion in 2012, the Detroit Free Press reported.

Michigan Gov. Rick Snyder is expected to use the report to appoint an emergency financial manager for Detroit.

Related UPI Stories
Topics: Rick Snyder
Latest Headlines
Trending Stories
Ted Cruz campaign pulls ad featuring softcore porn actress
Report: Clinton Foundation subpoenaed by State Dept. watchdog over charity projects
Ruby Rose, Gigi Hadid react to Kanye West's lyric about Taylor Swift
Kristen Wiig impersonates Peyton Manning on 'The Tonight Show'
NYC police officer found guilty of manslaughter in Brooklyn stairway shooting