Looks like it was one of those pesky democrats, Jennifer Granholm

The Michigan Treasury Department in 2009 sent a team to look into the city's finances. The team's report was a long list of mismanagement to the point that budgets were "effectively meaningless as a financial management tool." The city was $10 million under- funded in its pension fund and increasing budget deficits. In April 2010, Democratic Governor Jennifer Granholm appointed Joseph Harris as Emergency Financial Manager.

http://michiganradio.org/post/3-reasons-things-are-looking-city-benton-harbor

http://www.nytimes.com/2011/04/27/us/27michigan.html?pagewanted=all

http://en.wikipedia.org/wiki/Benton_Harbor,_Michigan

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