12/22/2011 09:00 am ET | Updated Dec 27, 2011

Michigan Treasurer Andy Dillon Talks Detroit Review, Says Emergency Manger Law Works

By Jonathan Oosting

The State of Michigan will launch a formal review of Detroit's finances, probably some time in early January, after a preliminary review revealed "probable financial stress."

Treasurer Andy Dillon announced the news yesterday, surprising only the select few who had not heard Mayor Dave Bing tell residents that the city could run out of cash by April.

Dillon's report to Gov. Rick Snyder detailing Detroit's financial crisis did contain at least one surprise -- that the city's long-term debt is closer to $12 billion than the $10 billion he originally estimated -- highlighting the dire need for pension reform.

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