Michigan To Take Over Detroit City Government

Source: Poppy Harlow and Chris Isidore / CNN Money

Michigan Gov. Rick Snyder announced Friday that the state will take over the operations of Detroit’s city government due to its long-standing financial problems.

The takeover is short of a formal bankruptcy, but it will include appointing an emergency manager who would have many of the same powers as a bankruptcy judge. It could mean throwing out contracts with public employee unions and vendors that the city can’t afford, and could lead to further cutbacks in already depleted city services.

Detroit has 10 days to appeal Snyder’s decision that there is a financial emergency in the city. Snyder said he has a “top candidate” for the manager post, but that he won’t announce it until after the appeals period has passed.

Snyder, a Republican, insisted the emergency manager is the best way to deal with the problems facing the city’s operations.

To read this article in its entirety visit CNN Money.