Snyder to make announcement on Detroit's financial crisis

Detroit Mayor Dave Bing says Governor Rick Snyder will make an announcement on Friday that could lead to an appointment of an emergency manager to run the city.

Fox 2's Alexis Wiley attended a news event where Bing said he spoke to the governor by phone earlier in the day. The mayor says "everybody's got a pretty good idea of what the announcement is going to be."

Click on the video player to hear Mayor Dave Bing's remarks to reporters about the possibility an Emergency Manager will be appointed.

Fox 2 has learned that Snyder will be at Wayne State University to attend a town hall forum style event.  The announcement on Detroit's financial crisis will take place around noon Friday.  Fox 2 News will be there to cover it live.

Sources in Lansing tell Fox 2 Political consultant Tim Skubick that Snyder will announce that he agrees with a financial review team's report that says the city is in a financial crisis.

Skubick's source says Snyder is not expected to formally announce the appointment of an emergency manager, but he could make that decision unless city leaders can change his mind.

If Snyder's says he plans to move forward with the appointment, a 10-day deadline will be offered to the Detroit City Council and Mayor Bing, allowing them time to ask for hearing and present evidence that would avoid the appointment of an emergency manager. 

City leaders will need to present enough evidence to change the Governor's mind.  If they don't, he could move forward appoint an emergency manager.

Last week a state-appointed review team determined the city was in a financial emergency.

The review team pointed to the city's ongoing cash crisis, which have threatened to leave the city without money to pay its workers or other bills. It noted that the city's deficit could have reached more than $900 million in fiscal year 2012 if the city had not borrowed enormous amounts of money; that Detroit has long-term liabilities, including under funded pensions, of more than $14 billion; and that the city's bureaucratic structure makes it difficult to solve the financial problems.

The emergency manager would be responsible for overseeing all of the city's spending. Bing and the City Council would keep their jobs, but the manager would decide all financial matters. And only the manager would have the power to authorize the city to take the bankruptcy route.

- The Associated Press contributed to this report