The City of Hamtramck is considering bankruptcy and wants the state's permission to file.
The Detroit News reports Tuesday that the small enclave of Detroit is in debt. It seeks protection from creditors and would use bankruptcy to move city unions to consider concessions.
City officials asked the state Treasury Department last week to allow it to file for bankruptcy. City Manager Bill Cooper says he has not yet received a response.
Cooper says the city faces a $3 million deficit and could run out of money on Jan. 31, 2011. He says Hamtramck could not pay its 100 city employees or more than 150 retirees without bankruptcy.
The city is seeking pay cuts from union workers. Non-union employees have taken a 5-percent cut.