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Stateside: Detroit's deficit reaches nearly $327 million, raising question of financial manager

Paul Hitzelberger
United Photo Works
As the city's financial situation worsens, Detroit moves closer to having an emergency financial manager

According to an independent annual audit, Detroit's deficit recently reached almost $327 million.

Detroit Free Press editorial writer Nancy Kaffer addressed the city’s dire financial status.

Kaffer said Detroit is closer to having an emergency financial manager, but was unsure as to how soon it would happen.

“There is a relatively dysfunctional relationship between the Mayor and the Council... you really have to have everybody on board together to get some of the dramatic changes they’re looking for,” said Kaffer.

“The Mayor tries to provide a strong direction for people to go in, but you have to build consensus before you say, ‘Follow me.’”

Once the Council resumes its session, Kaffer said some important negotiations will be made.

“Tomorrow, Council is back in session and they will start negotiating on some pretty significant cuts that the Mayor is proposing.”

Kaffer said that while the implementation of a financial manager would pose initial challenges, it could eventually improve the city.

“In the short-term it would probably be pretty rough…The theory is, if you take this short-term pain, in the long-run you will have a financially healthy city.”

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