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Election board approves second recall attempt in Michigan

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    Gov. Snyder facing showdown with unions over financial crisis

  • Duration 2:44
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-- value -- the financial crisis that is gripping Detroit now summer arguing that the city could be saved from the brink of bankruptcy.

But that a -- union battle could now stopped that from happening.

Steve Brown joins us now live from Detroit says -- The financial picture in that city they have been under tremendous financial pressure for a long time how bad is it now.

Well 2004 was the last time they had a balanced budget in this city the current operating deficit is somewhere near 200 million the long term obligation debt somewhere near twelve.

Billion with a piece of the city.

Has done a deal with the state this state will infuse it -- about a 137 million dollars.

This city will get new rules and strict regulations as to how to shore up its financial ship.

The state got to look at its books the city of Detroit's books actually for the first time and saw some practices that were right out of the last century.

Just -- do that please payroll -- take 65 full time employees.

So there's inefficiencies in the system because they don't have a good IT system with a good accounting system in place.

If you stop and think about that 65 full time people just to service the payroll for one department in the city of Detroit.

Gives you an idea how antiquated some of the systems are here.

And how badly they need reform in city government city.

Fathers the mayor of the majority the City Council all think this is the way to financially stabilizes sitting get it on a growth path once again -- That is an unbelievable story says Steve -- as a result of office fell.

There -- says some what familiar sounding effort that's under way there to recall governor Rick Snyder.

Because of this deal in part -- -- the Detroit Unionists.

On board with that half hour.

They were very much like to be there it's very difficult thing to do to recall somebody here in the state of Michigan as it is in Wisconsin the unions are in line to take a lot of the pain for these reforms that are probably coming up on the course of the next -- to three months as the city comes out of it.

But what the union leaders are now talking about is a very large job action -- -- -- If we were to strike compete you were to strike altogether here in Detroit we think we have -- opportunity.

To shake things up maybe get -- settlement and maybe get some money out of Washington for -- you know what -- really doesn't.

It is not what it is that the city -- the state as the target of that potential strike would be to try and -- -- some money from DC but again how long that they can bail out.

It's is a pretty open question mark now.

Interesting microcosm and a tough situation right Steve thank you very much.

Steve Brown -- what.

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