G8trGr8t
03-01-2013, 05:20 PM
http://www.nbcnews.com/business/economywatch/michigans-governor-declares-detroit-state-financial-emergency-1C8638601
Governor Rick Snyder of Michigan on Friday declared a fiscal state of emergency in Detroit in a move that could lead to the appointment of a financial manager who could file for the largest municipal bankruptcy ever.
Snyder's decision allows the city a 10-day grace period to formulate a plan to fix its finances before the governor reconsiders appointing an emergency manager who would likely drastically reduce services.
After the hearing or the expiration of the 10 days in the case of no hearing, the governor confirms or revokes his determination. A confirmation will assign management of Detroit's fiscal emergency to a Local Emergency Financial Assistance Loan Board composed of three state officials, including the treasurer, who are all Snyder appointees. That board would also appoint a manager for the city, under the current state law.
Detroit officials also will have the ability to appeal the fiscal emergency determination in state court. But that move would likely not delay the appointment of a manager, who could ultimately recommend the city file for bankruptcy. A Chapter 9 municipal bankruptcy by Detroit would be the largest ever in the United States.
Detroit has faced the steepest population decline of any American city in recent decades. Once the fifth largest U.S. city that shone as the birthplace of the U.S. automotive industry and Motown music, it now ranks 18th with about 700,000 people - after suffering a 25 percent decline in population between 2000 and 2010.
Unions power combined with democratic corruption is going to turn it into a giant farm before it is done. Canary in coal mine for several other alrge democratic machine cities with overhelming pension obligations and total debt ticking away waiting to blow up the city's finances. Chicago...are you paying attention?
Governor Rick Snyder of Michigan on Friday declared a fiscal state of emergency in Detroit in a move that could lead to the appointment of a financial manager who could file for the largest municipal bankruptcy ever.
Snyder's decision allows the city a 10-day grace period to formulate a plan to fix its finances before the governor reconsiders appointing an emergency manager who would likely drastically reduce services.
After the hearing or the expiration of the 10 days in the case of no hearing, the governor confirms or revokes his determination. A confirmation will assign management of Detroit's fiscal emergency to a Local Emergency Financial Assistance Loan Board composed of three state officials, including the treasurer, who are all Snyder appointees. That board would also appoint a manager for the city, under the current state law.
Detroit officials also will have the ability to appeal the fiscal emergency determination in state court. But that move would likely not delay the appointment of a manager, who could ultimately recommend the city file for bankruptcy. A Chapter 9 municipal bankruptcy by Detroit would be the largest ever in the United States.
Detroit has faced the steepest population decline of any American city in recent decades. Once the fifth largest U.S. city that shone as the birthplace of the U.S. automotive industry and Motown music, it now ranks 18th with about 700,000 people - after suffering a 25 percent decline in population between 2000 and 2010.
Unions power combined with democratic corruption is going to turn it into a giant farm before it is done. Canary in coal mine for several other alrge democratic machine cities with overhelming pension obligations and total debt ticking away waiting to blow up the city's finances. Chicago...are you paying attention?