Panel: Detroit in Crisis, Liabilities of $14 Billion

    Share on FacebookTweet about this on TwitterShare on Google+Share on StumbleUponEmail this to someone

    Detroit Finances

    With small towns and big cities all around America finding themselves in economic trouble, the city of Detroit is in the midst of a huge financial crisis.

    FOX News Radio’s Lisa Brady reports:

    Audio clip:

    Detroit Finances

    A team appointed by the state to review Detroit’s finances reaches a unanimous conclusion:

    (Dillon) “We believe there’s a financial emergency in the city.”

    And what’s more:

    (Dillon) “There’s no plan in place to correct the situation.”

    State Treasurer and team member Andy Dillon:

    (Dillon) “The city’s been running deficits really every year since 2005, and they’ve been masking over those in a way with some long-term borrowing.”

    That borrowed money counted as revenue.  Without that accounting rule, Detroit’s budget gap might be triple the current estimate of more than $300 million.  The review team says the city’s long-term liabilities total more than $14 billion, including underfunded pensions.

    The report recommends the Michigan governor declare a financial emergency.

    Lisa Brady, FOX News Radio.