Michigan Could Seize Control Of Massively Indebted Detroit Tomorrow

Michigan Gov. Rick Snyder will announce tomorrow that the state will likely seize control of the City of Detroit's administration, ABC7's Detroit affiliate WXYZ reports.

According to the Detroit Free Press, Mayor Dave Bing told reporters he spoke with Snyder this morning but declined to elaborate on their conversation. However, the paper says "there is a widespread assumption that Snyder will declare an emergency in Detroit and move forward with hiring an emergency manager."

“I’ve got to let me him make the announcement,” Bing told reporters outside a conference center at MotorCity Casino-Hotel. “I think everybody’s got a pretty good idea of what the announcement will be.”

The city has been mired in spiraling deficits, compounded by mounting debt payments and employee liabilities.

Gov. Snyder made a dramatic video statement foreshadowing the move last week — it's worth watching (and short):

Here two charts from Gov. Snyder's office showing the problem:

And the liabilities: