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Debt-laden Detroit makes one last bid to avert fiscal takeover by state

Detroit officials on Tuesday argued against handing over fiscal control of the city to a state-appointed emergency manager, citing an agreement already in place to repair city finances. Governor's final decision on next step is expected this week. 

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City Council representative Edward Keelan speaks at a hearing in the Treasury Department over the appointment of an Emergency Financial Manager for Detroit on Tuesday in Lansing.

Dale G. Young/Detroit News/AP

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Officials from the nearly bankrupt city of Detroit made a last-ditch attempt Tuesday to stave off losing control of city finances to a state-appointed emergency manager, arguing that more time is needed for fixes applied as a result of a state-city agreement last summer to show results.

Their appeal, made at a one-hour hearing in Lansing, Mich., the state capital, is the last step before Gov. Rick Snyder (R) gives final word on whether he will name an emergency financial manager to intervene in Detroit's finances in a bid to cope with its huge debt and continuing deficit. Most city officials have resisted such a draconian step ever since it became clear in late 2011, when Detroit almost did not make its payroll, that the Motor City was in dire straits. Governor Snyder is expected to say later this week what he will do.

If Snyder does appoint an outsider to seize control of the city's finances, Detroit will make history as the largest city in the US to be directly controlled by an emergency financial manager. 

 
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