Tagged: Detroit

Update 3:30 p.m.

Governor Snyder says he’s still talking with Detroit officials about an agreement to keep the city financially afloat.

A state review team has already declared a “severe financial emergency” in Detroit. That means they’ll recommend some kind of state intervention to keep the city from going broke. 

The Governor says talks continue over what a “financial stability agreement” will look like.

But he says that agreement needs to contain language that could turn it into a consent agreement if the city fails to live up to its promises.

“So to take this financial stability agreement and enhance it, so that it could also qualify as a consent agreement. So it would meet the requirements for Public Act 4. But it would really be this financial stability agreement going forward about how we could work the city as partners.”

Public Act 4 is the state’s emergency manager law. Under a consent agreement, the mayor or other city officials could get broad powers similar to those of an emergency manager.

2:50 p.m.

Gov. Snyder spoke with members of the media today about a plan to avoid a financial crisis in Detroit.

Sndyer and other state officials are in Detroit today working toward a solution. Snyder said negotiations with city leaders are "fairly far along," and they are a "couple of paragraphs away" from an agreement.

Snyder and State Treasurer Andy Dillon are hoping city leaders will sign off on a consent agreement designed to avoid a looming financial crisis in Detroit.

City leaders rejected an initial proposal by the state and have been working on a plan of their own.

From the Detroit News:

Snyder told reporters Monday in Detroit that both sides are close to reaching a "financial stability agreement," which is what the deal will be called until it can be considered a consent agreement under the law. The governor reiterated he does not want to run Detroit.

City leaders argued that the initial consent agreement proposed by the Governor amounted to a state takeover. The Detroit Free Press reports the city's counterproposal retains powers for local elected leaders.

Officials have been mum on specifics of the counterproposal, but one draft -- not necessarily the final version -- showed the city asking the state to approve a $137-million financial package for immediate relief and change legislation so that the city can raise its income and corporate taxes.

The city's plan, called a financial stability agreement, also would return budget authority to the mayor and the council, and essentially leave a seven-member financial advisory board with the power to make only recommendations.

In about ten minutes, the state's financial review team is expected to make its recommendation to Gov. Snyder on whether or not a state-appointed emergency manager is needed for Detroit.

And as all this goes on, the Detroit News reports on a legal appeal to the State Supreme Court aimed at stopping the state's financial review team.

Andrew Patterson, lawyer for activist Robert Davis, said he expects to hear "shortly" from the court on whether the panel will consider the motion.

If the Supreme Court agrees, it will consider whether the state Court of Appeals acted appropriately Friday by lifting an Ingham County Circuit Court injunction. The injunction prohibited a consent agreement until Judge William Collette can hold a contempt hearing Thursday to determine if Treasurer Andy Dillon and other members of the review team violated the Open Meetings Act.

Former Governor Bill Milliken turns ninety today, and just about everyone is publishing some kind of tribute to the longest-serving governor in Michigan history. Milliken himself is not likely to say much today, but that’s not because he isn’t still mentally keen. He called me a couple weeks ago to complain.

Today is deadline day, according to Gov. Rick Snyder. He wants the state financial review team to tell him whether they recommend an emergency manager for the city of Detroit.

After the financial review team makes its recommendation, Snyder has ten days to make his decision on whether or not to appoint an emergency manager, something he's repeatedly said he does not want to do.

He'd rather reach a consent agreement with the city, but so far, city leaders and state officials have not reached a deal.

State Treasurer Andy Dillon and city leaders have been working over the weekend to come up with an agreement. They've been meeting despite Detroit Mayor Bing's hospitalization for a perforated intestine.

The Detroit Free Press reports Kirk Lewis, Bing's chief of staff, "has been made deputy mayor and will act as mayor until Bing is able to resume his normal activities."

The mayor is in regular contact with Lewis, who is talking with Dillon and his officials, so Bing's hospital stay is not expected to prohibit an agreement from being reached, she said.

The Free Press reports Gov. Snyder will be in Detroit today to meet with council members and other officials.

Snyder is expected to talk to the media at 1:30 p.m. today about Detroit's financial crisis. We'll have an update for you then.

Much has happened on this story in the last few weeks. For a look back, you can check out all the stories we've produced here. And you can check out a quick list of recent events published this morning by MLive's Jonathan Oosting.

Detroit officials and a state financial review team are free once again to try and reach a consent agreement. The Michigan Court of Appeals tonight unanimously overturned an Ingham County Court judge’s order that prohibited the two sides from working out an agreement before Monday’s deadline.