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Mich. Gov. in Process of Assigning Detroit Emergency Manager

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    Michigan Lt. Gov. Brian Calley on the state’s economic future.

  • Duration 3:16
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The governor of Michigan is in the process of assigning Detroit and emergency manager to figure out if there's any way to save the city.

I want to bring in -- lieutenant governor of Michigan Brian -- -- -- That the way I see it is Detroit's got to auction basically two auctions and they are a -- federal bailout money coming in from the state of the -- all.

Bankruptcy a lobbying to launch.

Well we really need is is a permanent solution and that takes a couple of fundamental changes in the way that.

The city Detroit operates is performing a long term liabilities this actions that really the local leadership should have been taking.

For the last couple of decades and has failed to do and -- -- how it is time for us to get involved and make these changes it's a bankrupt.

So injunction that could do that that was that when you're talking about long term liabilities you're talking about pensions and health benefits for retired city workers the only person who consult back stop the -- so to -- is a bankruptcy court judges that.

In in Michigan law we have an emergency.

An emergency managers statute that.

Allows for the state to go through a process and then either.

And turn to a consent agreement or appoint an emergency manager to carry out actions to improve the financial health and of the city.

That's a process that we're going -- right now the review team has made a recommendation that a financial emergency be declared.

We have their recommendation hand right now and over the course -- the next.

And next few weeks -- make a final determination -- that and then decide how to proceed.

You've got to rein in the pensions and health benefits for retired city welcome -- the really it again in my -- too harsh there's no choices.

When you look at where the state of Michigan itself was just a few years ago.

-- our our long term liabilities including our our pension costs were.

Were mounting each year and so we instituted -- real reforms over the course of the last few years have reduced our debt.

The state of Michigan's liabilities are over twenty billion dollars less than they were.

In 2011.

When Governor Snyder and I took office and that that was those are hard decisions but they have to be made and so today.

We have our financial footing well underneath us and we are they come back state the example for the rest the nation but we need the same type of reforms.

Implemented in our cities as we also need and our federal government might.

That they would be draconian reforms for the city of Detroit -- I mean no question draconian.

It I think the most draconian thing you can do is leave the status quo because they're not they're losing the ability to offer even basic.

Public health and safety.

Functions and so we have to stand up for the citizens of the city of Detroit and and and really provide a framework -- -- help to solve this so that we can have.

-- services and and us safe communities and streets and so forth so this is this is a very sit serious situation deficit -- ever since 2004.

And and no real plan of action yet to to to fix that this report is very serious and we'll make a determination shortly -- Come back and tell us exactly how you gonna do this so because we're all very interest in this thank you very much and -- -- lieutenant government should -- up.

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