Review team finds 'severe financial emergency' in city of Detroit

DETROIT (WXYZ) - During a public meeting about the state of Detroit's finances, a financial review team unanimously voted that the city is in a "severe financial emergency."

The conclusion meets the requirement that is needed for Governor Rick Snyder to appoint an emergency manager to run the city's finances.

The review team also seemed to indicate that they would recommend the governor proceed with appointing an emergency manager and not enter into a consent agreement with the city.

Review team member and New Detroit President Shirley Stancato said during the meeting that there was no point in the review team even going over the proposed consent agreement put forth by the governor. She was backed up in her assessment by fellow review team member, former Michigan Supreme Court Chief Justice Conrad Mallett.

However, it is still up to Governor Snyder as to whether or not he will appoint an emergency manager or proceed with a consent agreement.

In recent days the proposed consent agreement has become a source of controversy in the city, with both the City Council and Mayor Dave Bing blasting it. They have gone so far as to say that the consent agreement is nothing more than an emergency manager by another name.

Both Mayor Dave Bing and the City Council have been working on a counter proposal to submit to the governor. During Wednesday's meeting State Treasurer and Financial Review Team member Andy Dillon said that he has received the counter proposal.

Governor Rick Snyder had put a March 26 deadline for the review team. However, on Tuesday a judge threw a wrench into the works by issuing a ruling saying the state could not enter into a consent agreement with Detroit before a March 29 hearing.

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