A state board has determined that the city of Highland Park is encouraging probable financial distress.
The finding by the Local Emergency Financial Assistance Loan Board on Monday means Gov. Rick Snyder will next appoint a review team.
An emergency manager ultimately could be appointed under state law. Other options for the city could include a consent agreement or bankruptcy.
The board on Monday also determined there is no probable financial distress in Ecorse Public Schools. A similar hearing is scheduled Wednesday for Royal Oak Township.