Detroit Declares Financial Emergency

Michigan Governor Rick Snyder declared a fiscal emergency in Detroit today.

According to UPI, the declaration will open the door for Detroit to appoint an emergency finance manager.

Snyder said:

“There’s been too much fighting, too much blame, not enough resources, not enough people working together … The key answer I believe all of us want to get to is growing the city of Detroit.”

Detroit Mayor David Bing has 10 days to appeal the governor’s decision. The mayor said that he would look into the Governor’s plan to see if the state is better equipped to help Detroit recover.

Bing said:

“If, in fact, the appointment of an emergency financial manager both stabilizes the city fiscally and supports our restructuring initiatives which improve the quality of life for our citizens, then I think there is a way for us to work together … The governor has made his decision, and it was his decision alone to make. While I respect it, I have said all along that I do not favor an emergency manager for the city of Detroit.”

According to Yahoo News, Detroit has a $327 million budget deficit. The city also faces more than $14 million in long term debt. Snyder said that it was a “sad day” to declare Detroit a financial emergency but also said that it is an opportunity to get the city out of trouble.

Snyder added:

“In many respects I describe today as both a sad day … saying there’s a financial emergency in Detroit, but also a day of optimism and promise because it’s time to start moving forward and solving these problems … Citizens are not getting the services they deserve and need, public safety, lighting, transportation — all those areas need help and it’s time to call all hands on deck and say let’s all work together.”

What do you think about Snyder’s decision? Will Mayor Bing agree and let an emergency financial adviser take over Detroit’s budget?