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One step closer to half the African Americans in Michigan being without local democracy and being disenfranchised. If Inkster, which is one step ahead of Detroit, falls as well, OVER half will be.

A preliminary review of Detroit’s finances has moved the city a step closer to appointment of an emergency manager.

Treasurer Andy Dillon issued a statement today that said the review by Treasury officials that began Dec. 6 found evidence of financial stress in Detroit and a team will be appointed to conduct a more detailed financial study. The new financial review can take up to 60 days, and the law provides a 30-day extension, but Dillon has said he will try to expedite it.

“We continue to implore the mayor and the City Council to come together on the development of a workable recovery plan,” Dillon said in a release.

“While it appears some progress is being made by the city, the review process must continue, given the city’s financial condition and the distinct possibility that it may run out of cash early in 2012.”

Dillson said in a report the city had violated the uniform budgeting and accounting act by not adjusting its budget on a timely basis; had not filed an adequate deficit elimination plan, has a mounting debt problem, trouble making payments to pension plans and could be short of cash by April.

The new financial review is to be conducted by a team that includes: Dillon or his designee; Department of Technology, Management and Budget Director John Nixon or his designee; a nominee of Senate Majority Leader Randy Richardville; and a nominee of House Speaker Jase Bolger.

Many in Michigan are arguing that these steps are being taken, not to end up with Detroit under the control of an Emergency Manager but as a cudgel to force union concessions and for various factions within the city to work together. They are dispensing with actual leadership and using threats and intimidation to achieve their goals which will undoubtedly include massive outsourcing to companies waiting on the sidelines to benefit financially as this shakes out.

It's the carrot-and-stick approach without the carrot.

Cross-posted at Eclectablog.

Originally posted to Eclectablog - eclectic blogging for a better tomorrow on Wed Dec 21, 2011 at 10:24 AM PST.

Also republished by Michigan, My Michigan.

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