CHICAGO - Michigan Gov. Jennifer Granholm has declared the city of Pontiac to be in a state of fiscal emergency and will likely appoint a manager to take over its finances after a hearing scheduled for next week.

Granholm's decision comes after Pontiac officials showed a "lack of urgency" regarding its fiscal problems, according to a letter Granholm sent to Mayor Clarence Phillips Feb. 20. The state first began reviewing the city's finances in July 2007.

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