Board: Detroit in 'severe financial emergency'
DETROIT (AP) — 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.
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.