Governor to announce EFM decision at noon today; State takeover of Detroit possible

DETROIT (WXYZ) - Detroit Mayor Dave Bing says he spoke by phone with Michigan Governor Rick Snyder today. He says the governor will announce his decision regarding the possible appointment of an Emergency Financial Manager for the city of Detroit on Friday.

 

 

FRIDAY UPDATE HERE: Governor Snyder to speak at noon 

 

The mayor said, "Everybody's got a pretty good idea of what the announcement is going to be."

When asked whether he expected the governor to announce the choice of an EFM, Bing said, "Not immediately."

Earlier today, WXYZ reported that Mayor Bing said the governor would announce a state takeover on Friday. The mayor says he did not make that statement and a review of his comments indicates that he did not specifically say a takeover would be announced. 

"I shouldn't make the announcement, the Governor will make it," said Bing while talking with reporters following a speech before the Detroit Regional Chamber at the MotorCity Casino.

UPDATE: Listen to what Mayor Bing said in the raw video with this story 

If the governor decides to appoint an EFM, the city will have 10 days to appeal the decision.

Governor Snyder said a week ago he would take a week or so to make his final decision on what he would do with the city of Detroit. At that time he said he would either appoint an emergency financial manager or enter into a new consent agreement with the city.

Those remarks came after a financial review team found that a financial emergency existed in the city of Detroit. The review team also recommended to Snyder that he appoint an emergency financial manager to run the city.

Detroit has been operating under a consent agreement with the state since last year. That consent agreement prevented the city from being taken over by an emergency manager, who would have been appointed under a state law that was in place at that time.

Voters overturned that law in November 2012 and the state reverted to an older law that allowed for the appointment of an emergency financial manager.

7 Action News has teams working the story to get more details and reaction.

 

Stay with 7 Action News and WXYZ.com for the latest on this breaking news.

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