CHICAGO — Michigan Gov. Rick Snyder is expected to announce a review of Detroit's finances — the first step toward a possible state takeover.
Detroit Mayor Dave Bing was to respond at a late Thursday-afternoon press conference. Members of the Detroit City Council and local labor leaders were also planning to attend the press conference. The parties have been feuding for weeks over the best way to tackle the city's distressed finances and ward off a state intervention.
A spokesman for the governor said Sndyer is poised to step in if local officials cannot reach an agreement, according to local reports. The Detroit Free Press reported Thursday that Snyder met with Bing Wednesday and said he plans to begin the review process.
The 30-day financial review is the first step toward the appointment of an emergency manager or some other form of state intervention. The state could also order a so-called consent agreement, crafted by local and state officials. A consent agreement would keep local officials in charge while giving them greater powers.
Bing has frequently warned of the threat of a state takeover in recent weeks. He has said that the city would run out of cash by April unless labor unions agree to $100 million in cuts.
