Michigan Gov. Rick Snyder will declare Detroit in a financial emergency and recommend that a Washington, attorney become Detroit's emergency manager, a source close to the governor said Wednesday.
Snyder is expected to make his announcement at 2 p.m. Thursday. He is expected to recommend that attorney Kevyn Orr oversee Detroit as it tries to recover from its budget troubles, the source said. Members of Michigan's Local Emergency Financial Assistance Loan Board would make the official appointment.
The governor said earlier this month that Detroit lacked an adequate plan to resolve its $14 billion debt and he would invoke a state law to appoint a manager to assume control of the city's operations. Detroit's City Council voted days later to challenge the move.
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