CHICAGO — Michigan is expected to launch a fresh review of Detroit's finances next week, paving the way for the possible appointment of an emergency financial manager.
State Treasurer Andy Dillon met with elected officials Wednesday to talk about who would be named as emergency financial manager and the role Detroit Mayor Dave Bing and other elected officials would play, according to local reports.
Dillon reportedly said the city has to implement a series of immediate changes to avoid the appointment of an EFM.
Political fighting between the city council and Bing has stalled many of the measures outlined in the historic consent agreement inked between the city and the state last spring that staved off appointment of an emergency manager at that time.
Dillon's intervention comes as the city faces insolvency, as soon as January, without bond proceeds from a state-controlled escrow account, top Bing officials told council members this week.
A state spokesman said a new review, which could take up to 30 days, would likely begin next week. That could lead to the appointment of an emergency financial manager, who could ask the governor to approve a Chapter 9 bankruptcy filing.
Bing was set to meet with the council Dec. 11 to urge passage of a measure hiring Miller Canfield Paddock and Stone PLC as the city's legal counsel for the consent agreement. The contract is one of several requirements from the state before it will release bond proceeds.
Bing said his administration has talked with the state about the appointment of an EFM previously. "Until the state makes a final determination, I will continue to implement my restructuring plan on behalf of the citizens of Detroit," he said in a statement Wednesday.
An EFM would be appointed under the state's old emergency management law for distressed governments after voters overturned the more recent and powerful law in November.
It was nearly a year ago that the state launched its initial financial review of the city, a move that led to the consent agreement.