Michigan Governer to Announce Emergency Takeover of Detroit

According to news reports quoting the mayor of Detroit, Michigan Governor Rick Snyder will announce an emergency take over of that state’s largest city:

DETROIT (WXYZ) – Detroit Mayor Dave Bing says Michigan Governor Rick Snyder will announce a state takeover of the city of Detroit on Friday.

Bing says the governor told him his decision during a phone conversation this morning. Bing was talking with reporters following a speech before the Detroit Regional Chamber at the MotorCity Casino.

The city will have 10 days to appeal the decision to the governor.

Governor Snyder said a week ago he would take a week or so to make his final decision on what he would do with the city of Detroit. At that time he said he would either appoint an emergency financial manager or enter into a new consent agreement with the city.

Those remarks came after a financial review team found that a financial emergency existed in the city of Detroit. The review team also recommended to Snyder that he appoint an emergency financial manager to run the city.

The finance review team just figured this out? Good job eggheads.

What tipped them off? Maybe the decades of ruin and collapse?

Or maybe it was this headline from a week ago:

47 Percent of Detroit Property Owners Pay No Taxes

After the streak of California cities declaring bankruptcy, I’m betting the state takeover of ailing cities’ finances will be recurring news.