DETROIT (AP) — Michigan Treasurer Andy Dillon said Wednesday that he probably will order a review of Detroit's municipal finances, a 30-day process that could lead to a state takeover of its largest city.
Detroit is deep in debt and has a budget deficit of more than $200 million.
Dillon was in Detroit Wednesday to meet with aides to Mayor Dave Bing and with City Council members about Detroit's worsening financial condition and its "long-term viability."
"A review has not been scheduled, though Treasurer Dillon has indicated that one would likely begin next week," Treasury spokesman Terry Stanton said in an email message.
A consent agreement between Detroit and the state last year allowed the city to avoid the appointment of an emergency manager, but some worry that Bing and the City Council aren't moving fast enough to enact financial reforms.
The financial manager "option cannot be taken off the table" for Detroit, Stanton said.
"As the treasurer has noted many times, delaying reforms and tough decisions only promises to make eventual solutions more difficult and painful," he said.
Bing and his staffers have been poring over plans to make up millions of dollars in bond money the city has failed to get from the state.
Unpaid furlough days are scheduled to resume in January, and Bing has said he would seek other cost-savings to offset the loss of much-needed cash.
The actions have become necessary after the City Council didn't approve a $300,000 contract required under Detroit's reform program with the state.
The Associated Press left message seeking comment Wednesday with City Council President Charles Pugh and Council Pro Tem Gary Brown. Bing spokesman Anthony Neely said he had no comment.
Earlier Wednesday, during a news event at which Bing announced a new public safety initiative, the mayor said he expected that the "rest of this week and early into next week, we'll spend as much time as we can with City Council trying to move things forward so that we can get on the same page and work collaboratively for the city and its citizens to go forward."
"The state has put forward some milestones that we have to reach in order for them to release the (bond) money," he said. "I don't think the state is bluffing. We need the money. And so we've got to get on the same page."
Associated Press reporter David N. Goodman contributed to this story.