DETROIT, Feb. 10 (UPI) — Facing $12 billion in debt and pension liabilities, Michigan’s governor will appoint an emergency manager to overhaul Detroit’s city finances, officials said.
Lawyers hired by the state have infiltrated all city departments in an attempt to find savings and identify wasted resources in advance of deploying the emergency manager. The three-person panel overseeing the brass tacks review of city government is due to release a report as early as Saturday, the Detroit News said. It is the final legal step necessary to appointing someone with the legal authority to overrule Detroit Mayor Dave Bing and the city council.
Michigan Gov. Rick Snyder commended city leaders for recent cost-cutting changes but said he’d prefer they’d have been done months ago.
The emergency manager will be responsible for either restructuring Detroit’s debt or guiding the city through bankruptcy.
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