Snyder, Treasurer: Review should spur Detroit to move quickly to fix finances

Dec 12, 2012

Governor Rick Snyder says the Detroit mayor and city council are operating under some tight deadlines if they want to avoid a state takeover.

A formal state Treasury review of the city’s finances is underway.

Governor Snyder’s been critical of the slow pace and infighting that have delayed Detroit’s compliance with a consent agreement with the state.

Mayor Dave Bing and the city council took some actions this week, but the governor said things need to move more quickly.

“There is a 30-day clock going where this review will take place, and coming out of that review, there will be a report on the financial condition of Detroit that decisions will be made on,” said Snyder.

State Treasurer Andy Dillon said time is running out to fix the city’s finances.

“Because of the erosion of the city’s cash position. Over the last 60 days, there’s been a 60 million dollar swing to the negative, and it’s just getting too close for comfort, where we don’t want the city, obviously, running out of cash,” said Dillon.

The governor and Treasurer Dillon are acting under the emergency financial manager law that preceded Public Act Four. That’s the emergency manager law rejected last month by voters.

There are court challenges to the state using the old law. The governor and the Legislature are working on a replacement.