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Local News Reports Mich. Gov. To Announce 'State Takeover' of Detroit


City's longstanding financial woes may prove insurmountable.

Republican Gov. Rick Snyder will reportedly appoint an Emergency Financial Manager (EFM) to takeover Detroit's finances on Friday, according to a breaking report from ABC affiliate WXYZ:

"[Detroit Mayor Dave] Bing says the governor told him his decision during a phone conversation this morning," the station reports. "Bing was talking with reporters following a speech before the Detroit Regional Chamber at the MotorCity Casino."

Detroit has 10 days to appeal the decision to Gov. Snyder.

The governor said last week that he had yet to decide what to do with the troubled city, adding that he'd either appoint an EFM or enter into a new consent agreement with the city.

A state-appointed financial review team found earlier this year that the city's fiscal woes have indeed reached crisis point. They recommended Gov. Snyder appoint an EFM.

"Detroit has been operating under a consent agreement with the state since last year. That consent agreement prevented the city from being taken over by an emergency manager, who would have been appointed under a state law that was in place at that time," the report adds.

"Voters overturned that law in November 2012 and the state reverted to an older law that allowed for the appointment of an emergency financial manager," the report adds.

UPDATE: Soon after WXYZ reported on the governor's supposed announcement, the story disappeared entirely from its website:

Screen grab

UPDATE II: It appears the report momentarily disappeared from WXYZ's website because they were tweaking the language of the story a little.

The way things look now, a EFM seems extremely likely, but it's not a sure thing. This is how the ABC affiliate's headline reads as of 3:05 p.m. ET: "Governor to announce EFM decision tomorrow; State takeover of Detroit possible."

"[T]he governor will announce his decision regarding the possible appointment of an Emergency Financial Manager for the city of Detroit on Friday," reads the updated report.

"Everybody's got a pretty good idea of what the announcement is going to be," said Mayor Bing.

The mayor was asked if he thought the governor would appoint an EFM. He answered, "Not immediately."

We'll see what happens tomorrow.


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Follow Becket Adams (@BecketAdams) on Twitter

Featured image Getty Images. This story has been updated.

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