Inkster In Financial Stress, But Avoids Emergency Manager
LANSING (WWJ/AP) - The city of Inkster is in "severe financial stress," Gov. Rick Snyder announced Friday, but a consent agreement to improve its budget avoids the need for a state-appointed emergency manager for now.
The recent approval of a consent agreement by a state review team and the city keeps local officials in control of the southeast Michigan city as long as certain conditions are met.
City officials must provide the state with detailed plans for reduced spending or increased revenue to improve its budget situation. The city must pursue alternatives for delivering certain services to Inkster residents, including possible consolidation of some services with other local governments.
If the city doesn't adhere to the consent agreement, the state could appoint an emergency manager.
Snyder said the agreement in Inkster shows how a Michigan law approved last year can help cities and schools avoid financial emergencies "by addressing difficulties before they reach crisis stage."
"The City of Inkster is a terrific example of how this process can work," Snyder said in a statement.
Detroit also is being analyzed by a state review team, which could result in a consent agreement or the appointment of an emergency manager.
The Michigan law has become controversial in cases where an emergency manager is appointed. Hand-picked by Gov. Snyder, emergency managers assume the authority and responsibility of locally elected officials -- including the power to terminate collective bargaining agreements and strip local officials of power.
Emergency managers are in place in Benton Harbor, Ecorse, Flint and Pontiac along with school districts in Detroit and Highland Park.
TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.
