Governor declares Hamtramck in financial emergency

Governor declares Hamtramck in financial emergency

Posted: Updated:
Hamtramck Mayor Karen Majewski Hamtramck Mayor Karen Majewski
HAMTRAMCK, Mich. (WJBK) -

Gov. Rick Snyder has confirmed a review team's conclusion that Hamtramck is in a financial emergency, moving one step closer to a possible state takeover of operations in the Detroit enclave.

Snyder asked for a review of Hamtramck's finances in April after a request from city officials.

In a report May 23, the review team estimated the city of 22,000 will have a $3.3 million deficit in its $16 million general fund budget by June 30.

Monday's declaration gives city officials 7 days to choose among state appointment of an emergency manager, a bankruptcy filing, mediation, and a consent agreement.

Michigan took over Hamtramck in 2000 because of debt. State control ended in 2007.

"Nobody wants to see a financial manager come into their city," says Hamtramck Mayor Karen Majewski. "We've been in that situation before. We know what some of that entails and how difficult that can be."

Emergency managers now run Detroit, Flint, Pontiac and three other Michigan cities, plus three public school districts.

- The Associated Press contributed to this report

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