Panel: Detroit in Crisis, Liabilities of $14 Billion

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:

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.