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Rio governor declares 'public calamity' over financial crisis

Less than two months before Rio de Janeiro is set to host the Olympic Games, the state’s acting governor has declared a state of “public calamity” because of its financial crisis.

Francisco Dornelles’ move gives him more control over the state’s limited resources as the Games approach to avoid “a total collapse in public security, health, education, transport and environmental management.”

Dornelles said in his decree, published in the state’s official gazette, that Rio’s financial problems have arisen in large part because of falling oil prices and pension costs.

He said in a translated statement that he hopes the decree will “draw the attention of every citizen to the financial difficulties experienced by the state.”

Dornelles met with Brazil’s acting president, Michel Temer, and conveyed to him his concerns about the state’s safety, health, mobility and sanitation. Temer visited the state last week and ensured that the federal government would help ensure all needs are met.

Infrastructure expenses related to the games are shared between local, state and federal budgets, but the state is in charge of day-to-day security and health costs.

Bloomberg reports that Rio’s debt nearly doubled its revenue in 2015. This year, officials project a 2016 debt of 20 billion reais ($5.85 billion) and the state has been delaying payments to public servants.

Still, Rio officials are adamant that the Olympics will run smoothly.

“The Olympic Games will be a success,” Dornelles said. “No country will make the Olympic Games so well done, so well equated as Rio de Janeiro and Brazil.”