Political analysts offer insight on struggles over Detroit's finances and Mayor's race in 2013

DETROIT (WXYZ) - The new year will arrive with the issue of Detroit's perilous finances still hanging over the city.

"It's a defining moment for the city," said Bankole Thompson, editor of the Michigan Chronicle.  "The city is at a crossroads, I mean, economically, socially and politically."

Detroit faces its own "fiscal cliff" as a financial review team examines the city's books as a condition of the Consent Agreement between the state and city of Detroit.

State Treasurer Andy Dillon will eventually determine if the appointment of an Emergency FInancial Manager (EFM) is necessary.

"The Mayor has announced potential layoffs, Thompson said.  "There are people who are deciding, some of their New Year's resolutions is whether to stay in this city for the next 12 months or to move out."

Dave Bing has yet to announce whether he plans to run for re-election. 

Wayne County Sheriff Bennie Napoleon and Mike Duggan, the former CEO of the Detroit Medical Center, are deciding whether to run in 2013. Announced candidates include State Representatives Lisa Howze and Fred Durhal. 

Tom Barrow is expected to make another run as well.

"The most important man in Detroit right now is Andy Dillon," said political analyst Steve Hood. "Andy Dillon is going to determine the course of Detroit and the Mayor's race. If he decides he's going to put an EFM in there, and that person has sweeping powers, then the Mayor's race changes."

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