March 9, 2012 / 9:01 PM / 5 years ago

No loan for Detroit without turnaround plan: Governor

DETROIT (Reuters) - The state of Michigan has not received any request from Detroit for short-term funding to help the city avoid running out of money soon, the governor's office said on Friday.

But a spokeswoman for Governor Rick Snyder reiterated Snyder's view that the city needs a strong turnaround plan more than anything else.

"Short-term cash infusions alone without a clear path to resolving this financial crisis will not work," said Geralyn Anne Lasher, the spokeswoman.

The Wall Street Journal reported earlier on Friday that Detroit Mayor Dave Bing could seek between $125 million and $150 million in short-term funding as the city looks to avoid running out of money before the middle of the year.

Naomi Patton, a spokeswoman for the mayor, said that Bing "could" ask for "bridge funding from the state, but he currently "has no specific plans to request such funding."

Detroit City Council members have repeatedly criticized Michigan lawmakers for withholding hundreds of millions of dollars in revenue sharing they claim are owed to the city. The critics point to that money as needed income for a city with its back against the wall.

Bing is under intense pressure to turn Detroit's finances around and has said the city has only enough cash to last until May. In recent months, he has sought deep concessions from city employees, vendors and other constituents, while also looking for ways to raise revenue.

During his annual state of the city address on Wednesday, Bing asked state leaders to help him in his effort to get concessions. The city in recent weeks has reached tentative deals with some of its 48 unions.

Snyder more deeply inserted himself in Detroit's turnaround effort late last year when he appointed a team to review the city's finances and make a recommendation on whether an emergency manager is needed. A decision on an emergency manager is due at the end of March.

"The governor remains committed to working with the city and city council to address the short-term and long-term financial issues," Lasher said on Friday. "However, there must be a solution to the city's financial troubles and it has to be sustainable so we don't find ourselves in this same situation down the road."

Additional reporting by Karen Pierog; Editing by Dan Grebler

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