Business, Economics and Jobs

Michigan Gov. Rick Snyder: Detroit financial stability agreement close


President Barack Obama speaks outside General Motors' world headquarters in Detroit during Labor Day celebrations on Sept. 5, 2011.



A review panel appointed by Michigan Gov. Rick Snyder decided not to recommend today that an emergency manager take over the financially-troubled city of Detroit, the Associated Press reported.

According to Bloomberg Businessweek:

The 10-member panel declared the city – Michigan’s largest and home of General Motors Co. (GM) – in severe financial stress. That gives Snyder time to negotiate with [Detroit Mayor Dave] Bing on a way to give the mayor broader power to reduce costs, and buys time to solve the city’s fiscal crisis, which deepens daily.

Detroit is staring at a $200 million budget deficit, and state Treasurer Andy Dillon has said Detroit could run out of cash by the end of May, according to the AP.

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Snyder told reporters today that he and city officials are close to agreeing upon a deal that would avoid the need to appoint an emergency manager, Bloomberg Businessweek reported. "My role is not to run the city of Detroit. My goal is for the state to provide a supporting resource, be a partner," Snyder said, according to the AP. "Much of this agreement is pretty far along. We need to make some reviews. Both the City Council and mayor need to make some reviews."

At a review team meeting that was open to the public today, Dillon said a nine-member financial advisory board whose powers are still being debated and a program manager will be part of the “financial stability agreement,” the Detroit News reported. According to the AP, Dillon said, “The governor assured me today he doesn't want an emergency manager, and neither do I.” Audience members repeatedly shouted down Dillon during his presentation, and they cried "liar!" after that statement.

Bing is currently in the hospital, recovering from emergency surgery on Mar. 24, but Snyder predicted a financial stability plan will be agreed upon by the end of the week, the AP reported.

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