“I believe it’s important to declare the city of Detroit in financial emergency…..There is no city that is more financially challenged….”-Rick Snyder, Governor of Michigan

01 March 2013/18 Raby’ ath-Thani 1434/11 Esfand 1391

The Governor of Michigan, Rick Snyder, announced he is taking over the management of the city of Detroit. City officials have ten days to appeal the decision.

The city will be run by a state emergency manager, who will have the same authority as a bankruptcy judge.  State officials say the take over is necessary because the city has been operating on debt financing far too long, and now faces long term liabilities that exceed $14 billion USD!

The state takeover could mean the end of city employee unions and massive layoffs.  Detroit is the 6th Michigan city to be taken over by the state government.