DETROIT (AP) — In less than a month, Michigan Gov. Rick Snyder will decide whether Detroit should get an emergency manager to oversee its financial recovery.
The question may not be who can save Detroit, but how can Detroit be saved.
Options are limited. Some experts are split on what may be best: long-term restructuring with state help or cutting the city's losses now through municipal bankruptcy.
National municipal bankruptcy expert James Spiotto says Detroit would be the largest city to file for Chapter 9 protection. He said that should be "the absolute last resort."
A review team said Tuesday that Detroit is in a financial emergency with more than $14 billion in long-term liabilities, a $327 million budget deficit and cash flow issues.