A state review deemed the city of Detroit in a financial emergency on Tuesday, leaving the door open for Michigan Gov. Rick Snyder (R) to appoint an emergency manager. Detroit faces a $327 million budget deficit in fiscal year 2013, and has carried substantial deficits since 2005. Per the AP:
Under Michigan law, Snyder has 30 days to decide for himself whether there's a financial emergency. Mayor Dave Bing would have 10 days to request a hearing. Snyder could then revoke his decision or appoint an emergency manager.
The emergency manager would be responsible for overseeing all of the city's spending. Bing and the City Council would keep their jobs, but the manager would decide all financial matters. And only the manager would have the power to authorize the city to take the bankruptcy route.