The state is beginning a preliminary review of Detroit's finances to determine if the city should be considered for takeover by an emergency manager.
State Treasurer Andy Dillon says he does not see bankruptcy as an option for Detroit.
"I don't see that in the near-term, no," he says. "Because if you look at the revenues coming into the general fund, it's a fixable issue for the city. Now the longer-term debt may present an issue that we'll have to figure out how to tackle down the road."
Dillon says this is the first step in a review of Detroit's finances and does not guarantee the city will be taken over by the state. But he says because Detroit is running out of money quickly, a review is time sensitive.
Dillon says the preliminary review of Detroit's finances will look at the city's cash-flow and long-term debt.
"There is a cash problem, but there's also a balance sheet problem," he says. "And what's the long-term solution for the city so that while we may solve a cash problem for the next 10 months, how are we going to start addressing these long-term liabilities whether it be bonded debt or unfunded liabilities for health care?"
The Detroit Public Schools already have a state emergency manager.
The state Department of Treasury also announced today that Governor Rick Snyder has appointed a review team to look at the finances of the city of Inkster.