Experts split on Detroit’s fiscal recovery options
by Corey Williams, Associated Press
February 20, 2013 03:00 PM | 317 views | 0 0 comments | 2 2 recommendations | email to a friend | print
In this Oct. 24, 2012 file photo, a pedestrian walks in Greektown in downtown Detroit. A state-appointed review team Tuesday, Feb. 19, 2013 determined Detroit is in a financial emergency, paving the way for Republican Gov. Rick Snyder to appoint an emergency manager who would need to come up with a new plan to get the city out of its fiscal crisis. (AP Photo/Carlos Osorio, File)
In this Oct. 24, 2012 file photo, a pedestrian walks in Greektown in downtown Detroit. A state-appointed review team Tuesday, Feb. 19, 2013 determined Detroit is in a financial emergency, paving the way for Republican Gov. Rick Snyder to appoint an emergency manager who would need to come up with a new plan to get the city out of its fiscal crisis. (AP Photo/Carlos Osorio, File)
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In this Feb. 7, 2011 file photo is the Monument to Joe Louis in Detroit. A state-appointed review team Tuesday, Feb. 19, 2013 determined Detroit is in a financial emergency, paving the way for Republican Gov. Rick Snyder to appoint an emergency manager who would need to come up with a new plan to get the city out of its fiscal crisis. (AP Photo/Carlos Osorio, File)
In this Feb. 7, 2011 file photo is the Monument to Joe Louis in Detroit. A state-appointed review team Tuesday, Feb. 19, 2013 determined Detroit is in a financial emergency, paving the way for Republican Gov. Rick Snyder to appoint an emergency manager who would need to come up with a new plan to get the city out of its fiscal crisis. (AP Photo/Carlos Osorio, File)
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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.

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