HAMTRAMCK, Mich. (AP) - Gov. Rick Snyder has named a review team to look at the finances of Hamtramck, an enclave of Detroit.
The state Treasurer's office says he took the step Wednesday.
The action could lead to the appointment of an emergency manager over Hamtramck's finances.
City officials requested a preliminary review by state treasury officials, who determined Hamtramck was in a serious financial condition.
The review revealed that Hamtramck officials submitted an unacceptable deficit reduction plan to the state and delayed $2 million in pension contributions to manage cash flow.
Emergency managers now run Detroit, Flint, Pontiac and three other Michigan cities, as well as three public school districts.
Michigan took over Hamtramck in 2000 because of debt. State control ended in 2007.