State review team: Detroit in 'severe financial emergency'

Published On: Mar 21 2012 03:34:37 PM EDT   Updated On: Mar 21 2012 10:45:16 PM EDT

The vote is unanimous: The city of Detroit has a severe financial emergency.


A state review team has determined that a "severe financial emergency" exists in Detroit, meeting the threshold necessary for the state to appoint an emergency manager.

The team voted 9-0 Wednesday during a public meeting in Detroit. Gov. Rick Snyder will determine whether an emergency manager is appointed.

Rumbles of discontent over the fight for financial leadership in the city were evident by the concerned citizens who showed up at the meeting.

"You all should be ashamed. How could you?" said Gloria Jones.

At one point, a woman who wanted to read paperwork stood over the shoulder of a team member. When she was asked to sit down, she plopped down right on the floor.

Detroit faces a nearly $200 million deficit and the specter of possible payless paydays. The city is expected to run of money in May.

Before Wednesday's vote, review team member and former Michigan Supreme Court Justice Conrad Mallett Jr. said the city's "old way of doing things has got to stop."

City and state officials have been trying to forge a consent agreement that would prevent an emergency manager from being appointed in the city.

Snyder says he prefers a consent agreement.

Detroit Mayor Dave Bing's counter proposal asks for $137 million from the state.

"The counter proposal is much better than the original proposal," said City Councilwoman Saunteel Jenkins.

Lansing leaders say it is unlikely what the mayor submitted Wednesday will fly.


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