Michigan Governor Takes Over Detroit
CHO: A fire that shut down Interstate-95 in Florida is now 75 percent contained. The Interstate has reopened and many people who evacuated from 300 homes near Daytona Beach are now being allowed to return home. High winds and dry conditions are fueling the remaining flames which have burned more than 1,000 acres so far. Four straight weeks and the fourth straight drop in gas prices. AAA reports this weekend that prices at the pump fell again this week. Not by much, just .8 of a cent. But better than nothing. The average this weekend for regular unleaded is $3.75 a gallon. Another company says it was victim of computer hackers. Evernote Corporation is a digital note-taking service. It reset all user passwords after the hacking. The company also says passwords are encrypted, making it harder for hackers to crack the content. So far it says it has not found any evidence that information stored on Evernote was ever compromised. America's famed Motor City, Detroit, is so broke, that the state of Michigan wants to take it over. Governor Rick Snyder made that announcement on Friday and now Detroit leaders have 10 days to decide if they're going to appeal. CNN's Poppy Harlow has more on Detroit's decline and what's at stake if that city goes bankrupt.</s>POPPY HARLOW, CNN CORRESPONDENT (voice over): Just two years ago, "Forbes" called Detroit "The City of Hope". Today it tops the Forbes "List of Most Miserable cities in America."</s>TINESHA FLOWERS, DETROIT RESIDENT: When you call the police now, you wonder if they're coming.</s>HARLOW: It's a tale of two Detroit. A city on the hook for more than $14 billion in unfunded pensions and health care costs for retired government workers.</s>JACK MARTIN, DETROIT'S CHIEF FINANCIAL OFFICER: Most of us are facing legacy costs that we can't afford. They were cut in the good old days when you could -- you know, the tax revenues were up. We didn't have overseas competition. We could sell all the cars we could make. That day is gone.</s>HARLOW: And get this. The "Detroit News" found nearly half of Detroit homeowners didn't even pay their property taxes last year. There have been hundreds of millions in spending cuts and thousands of government layoffs in recent years. But it's not enough. On Friday, Michigan's Republican governor, Rick Snyder, declared Detroit is in a financial emergency. In the coming days he is expected to announce a state takeover of the city in the former of an emergency manager with sweeping powers.</s>GOV. RICK SNYDER (R), MICHIGAN: It is time to say this is the time for us not to argue or to blame. But to come together as Detroit, Michigan, not Detroit versus Michigan. And bring all our resources to bear to say let's just solve the problem.</s>HARLOW: Detroit's mayor, Democrat David Bing, has long opposed such a move, saying this in 2011.</s>MAYOR DAVE BING (D), DETROIT: He could void all of their contracts. He or she could fire everybody quite frankly.</s>HARLOW: Joe Harris was Detroit's auditor for 10 years. (</s>On camera): An emergency manager has the right to basically throw out or rewrite union contracts, we'd likely see government job cuts? Wouldn't real people feel this?</s>JOE HARRIS, FORMER DETROIT AUDITOR GENERAL: It simply doesn't affect the -- average person, it affects the government workers, it affects the politicians, but it does not --</s>HARLOW: Union workers?</s>HARRIS: Union workers.</s>HARLOW: Those are real people.</s>HARRIS: You're absolutely correct.</s>HARLOW: Real people like Tinesha Flowers, a mother of eight and a government worker. She fears losing her job if more cuts come, but knows something has to change.</s>FLOWERS: At what point do someone does something that's going to make a difference? It doesn't matter if it's the emergency manager or God.</s>HARLOW: The rescue could also come from the private sector.</s>JOSH LINKNER, CEO, DETROIT VENTURE PARTNERS: What will ultimately be looked back at I believe for decades will be the story of the greatest American turnaround story in our country's history.</s>HARLOW (on camera): You think so.</s>LINKNER: Absolutely.</s>HARLOW (voice-over): Josh Linkner's company has invested $15 million in tech start-ups here.</s>LINKNER: And people will think you're smart.</s>HARLOW: And he's part of a group that recently bought 15 entire buildings downtown.</s>LINKNER: We're sort of like the Rocky Balboa of cities. We're fighting -- we're the underdogs, fighting for life and glory.</s>HARLOW: So what are Detroit's other options? There is bankruptcy which would shed debt but also cost the city millions in legal fees and bring that dreaded stigma.</s>MARTIN: I don't even like mentioning the B word.</s>HARLOW: Or what about even a federal bailout like New York City got in the '70s? But that was then.</s>MARTIN: I think it's pretty radical. I think it's nonsensical.</s>KIMME REED, DETROIT RESIDENT: I believe that if anybody needed to be bailed out, it would be the city of Detroit.</s>HARLOW (on camera): But good luck getting a federal bailout through Congress in this political environment. As for a bankruptcy, if that happened, it would be the single largest municipal bankruptcy in U.S. history. Poppy Harlow, CNN, Detroit.</s>CHO: That was snowy Detroit. Two wacky moments this week from the world of sports. First this, the world's number one ranked player pulls out of a tournament because of a toothache? Really? We will have that. Plus how a tattoo got one baseball player sidelined. We'll talk about that next.