Published December 14, 2012
DETROIT – Michigan's Treasury Department says a preliminary review of Detroit's finances has determined that the city is behind in fulfilling commitments made under a deal allowing it to avoid having an emergency manager appointed to run it.
The Treasury Department said Friday that the next step is the appointment of a review team to examine Detroit's finances more closely. That eventually could lead to state oversight and an emergency financial manager.
It says the review that was started Tuesday found Detroit has failed to amend its budget in a timely manner and continues to have "significant cash flow problems."
Detroit entered a consent agreement with the state earlier this year to avoid the appointment of an emergency manager. State officials have said the city is moving too slowly to make reforms.