Governor adds tasks to Detroit review team duties
Snyder asks review team to look at Detroit's cash crisis, $7M in new contracts for services
DETROIT (AP) -- Michigan Gov. Rick Snyder said Thursday that a state-appointed team reviewing Detroit's finances also should analyze whether new contracts related to the mayor's restructuring efforts are enough to help the city weather cash-flow troubles.
The Republican governor said the team, which is trying to determine whether the city is in a financial emergency, also should consider the "depth and breadth" of pension, health care and other long-term obligations and options for addressing them.
The City Council on Tuesday approved more than $7 million in legal and other contracts requested by the state as part of Mayor Dave Bing's plan to fix Detroit's finances.
Council members also approved Bing's request to remove Krystal Crittendon as the city's top lawyer. Crittendon angered Bing last year by legally challenging a consent agreement between the mayor and Snyder that helped Detroit avoid the appointment of a manager to oversee its finances.
In a statement Thursday, Snyder said he commends "the collaboration and the difficult, but necessary, actions" by the mayor and council, calling Tuesday's steps "noteworthy." However, he said he was asking the review team to assess whether the actions were "sufficient to actually address the city's short-term cash crisis."
Detroit has struggled with generating revenue over the past few months, depending on bond money held in escrow by the state to help meet payroll and pay some of its bills. The city also has a budget deficit of $327 million.
The current review team began looking at the city's finances on Dec. 18. Snyder had asked it to expedite its findings, said Sara Wurfel, a spokeswoman for the governor.
About a year ago, another review team pored over Detroit's books but stopped short of a declaring an emergency. Bing, Snyder and state Treasurer Andy Dillon eventually worked up the consent agreement to fix Detroit's deteriorating fiscal condition while avoiding an emergency manager.
"I have continually stated that my focus is on implementing my restructuring plan for the city of Detroit," Bing said in a statement Thursday. "I have also recently acknowledged a renewed collaboration with City Council. I welcome the governor's decision today to ask the review team to acknowledge the progress being made by the city."