The state took a big step today towards making Inkster the next Michigan city to fall under the oversight of an emergency manager.
Governor Snyder has appointed a seven-member review team to delve deep into Inkster’s city finances. A preliminary review has already found the city is in ‘probable financial stress’.
The city has struggled to deal with a multi-million dollar deficit. This week, the city laid off 20 percent of its police officers and the police chief announced he’s leaving too.
If the review team finds Inkster is facing a ‘financial emergency’, the governor may appoint an emergency manager to solve the problem.
Emergency managers are already in place in Flint, Benton Harbor, Pontiac, Ecorse and the Detroit Public Schools.
This the official announcement from the state Treasury Department:
Governor Rick Snyder today appointed a seven-member financial review team to examine the city of Inkster’s finances under Public Act 4 of 2011, the Local Government and School District Financial Accountability Act.
Appointing the team is the next step in the process after a preliminary review of Inkster’s finances by the Michigan Department of Treasury resulted in a finding of “probable financial stress” as a result of several issues, including recurring fund deficits and recurring cash shortfalls.
“A key component of Public Act 4 is the state’s ability to identify potential financial problems before they reach a state of emergency,” said Gov. Snyder. “In this case, earlier and relevant financial data keyed the preliminary review, which found probable financial stress. The panel appointed today will now conduct its review as quickly and efficiently as possible.”