"He is being transitioned out," said a person close to the situation, exchanging his candor for confidentiality. "He's a liability and that's politics. Everybody gets fired in this business."
Dillon -- who has been routinely drilled in the press over his train-wreck divorce, his drinking problems and his inability to manage his own campaign finance account, which is missing more than $100,000 -- is seen as a liability to Gov. Snyder's re-election chances.
"How many questions do you think the governor would have to answer about a guy in charge of the state finances who can't balance his own check book," the source said. "And then there's the ex-wife."
As state treasurer Dillon handles billions of dollars in tax-payer investments. He is also the direct supervisor of Kevyn Orr, Detroit's emergency manager.
Dillon's ex-wife recently accused him of battery and making drunken racial slurs about her boyfriend. The Wayne County Prosecutor found insufficient evidence to bring charges.
Dillon issued the following statement:
It is with mixed emotions that I announce I have tendered my resignation to Governor Snyder. It has become clear to me as it likely is to most that it is unfair to my family and the residents of Michigan, to allow issues related to my recent divorce and the unfortunate acrimony associated with it to be a continued source of media attention and scrutiny. My family deserves privacy and our residents deserve to know their State Treasurer is not distracted by such issues and events. For these personal and professional reasons, I have determined it is in the best interests of all that I resign.
I am deeply committed to Governor Snyder and have tremendous respect for him and his unbending commitment to the people of Michigan. I want to thank the Governor for the opportunity to serve as Treasurer and will work closely with his office to ensure a smooth transition to my successor.
I have always considered it a privilege and honor to work on behalf of all Michigan residents and will look back fondly on my years of service in Lansing.
Statement from Governor Rick Snyder:
LANSING, Mich. — Gov. Rick Snyder issued the following statement regarding the resignation today submitted by state Treasurer Andy Dillon, who will step down Nov. 1:
"It is with regret but understanding that I accept Andy's resignation. He has been instrumental in many of the comprehensive reforms that are contributing to Michigan's comeback. Andy has worked tirelessly on behalf of the people of Michigan, and we're a stronger state because of his dedication, expertise and leadership.
"We all can be proud of everything that Michigan has accomplished during the past three years. Working together, we've brought fairness and simplicity to Michigan's outdated tax system. We've worked collaboratively to help cities and schools deal with financial crises. His partnership with Detroit to assist in the city's turnaround is just one example of Andy's positive impact on Michigan. We've also worked with our local government partners to encourage greater service efficiencies that benefit taxpayers. A key reason for the success of these initiatives and others is Andy's commitment to Michigan's future. He embraced those challenges because he understands that these policies are critical to ensuring more and better jobs for families, and preparing our children for the exciting opportunities that lie ahead.
"Andy has demonstrated time and again that he was the right person at the right time to serve as treasurer. I respect his decision to seek new opportunities and offer my sincere gratitude for his years of selfless service to our state.
"I am pleased that Andy will remain available to assist the new treasurer with the transition. We are working to select a new treasurer and will share that announcement when the process is completed."
Statement from Michigan AFL-CIO President Karla Swift:
Whether serving in the Michigan Legislature or as State Treasurer, Andy Dillon never had the best interests of working families at heart. The fact that Gov. Snyder appointed him in the first place shows the administration's commitment to serving corporate special interests.
The timing of this announcement raises questions. Why would Dillon step down now, just as Governor Snyder's secretive NERD Fund is beginning to receive serious scrutiny? We respect the Dillon family's need for privacy, but wonder why it wasn't an issue months ago.