Detroit,MI-Since the fold of some of its major automotive backers, Detroit has seen nothing but downfall. Once practically leading the nation in unemployment claims, Detroit is now facing being placed into the hands of an Emergency Financial manager.
Michigan officials will launch a formal review of Detroit to determine if a state takeover is warranted, officials said on Wednesday, after a preliminary review found "probable financial stress" for the state's largest city.
Detroit was once one of the most populated in the United States, but lost 25 percent of its residents between 2000 and 2010. City Council President Charles Pugh said he believed the process under way between the council, the mayor and unions will ultimately let the city avoid a consent agreement or emergency manager.
The city faced large budget cuts before the suggestion of getting Lansing involved ever came on the table with no prevail. Some of the suggested cuts from the mayor was to cut back on much needed public services, which included Emergency Medical, Firemen, and Police.
Mayor Bing stand firm on his belief that the city will rebound, but in the state's preliminary review it found the city has a mounting debt problem with long-term liabilities estimated to top $12 billion. The city's annual budget is around $3.1 billion.