reuters.com / By By Steve Neavling / DETROIT | Fri Mar 1, 2013 12:26pm EST
Reuters) – Michigan Governor Rick Snyder on Friday officially declared Detroit in a fiscal emergency, setting the stage for a state takeover of the city’s financial management and ultimately the possibility of the largest municipal bankruptcy in U.S. history.
The Republican governor said he agreed with a February 19 report by a six-member team of experts that concluded Michigan’s largest city is in dire financial shape and a plan put in place last April to aid Detroit was not sufficiently working.
The expert team Snyder assembled in December did not officially recommend the appointment of an emergency financial manager, leaving that decision up to the governor.
Snyder said he had identified a top candidate to be the emergency manager but declined to identify the person.
“I believe it’s appropriate to declare the city of Detroit in financial emergency,” Snyder said at a forum in Detroit.
Detroit officials now have 10 days to request a hearing with the governor about his determination.