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Michigan Gov. Takes Control of Detroit’s $14 Billion Dollar Deficit After City Leaders Fail to Resolve Crisis

Dave Bing

Mayor Bing

Detroit’s long term liabilities stand at a whopping $14 billion dollars, and now  the methods for resolving the budget crisis are in Michigan Gov. Rick Snyder’s hands after a review board found that  the city was in a financial emergency with “no satisfactory plan” to resolve it.

Republican Gov. Rick Snyder has 30 days to decide whether to assign an emergency manager to resolve Detroit’s fiscal crisis.

The independent review board determined that Detroit’s debts could have reached $900 million last fiscal year had it not borrowed enormous amounts of money.

State Treasurer Andy Dillon says the city could find a way out of its financial situation if it worked with the state.

“It’s our hope at the state level that this is a partnership. It doesn’t have to be adversarial,” said Dillon, a member of the review team. “A lot of the ingredients for the turnaround of the city are in place. Now we just need to execute. I do believe strongly that Detroit is fixable.”

 The city has already agreed to allow some state oversight into its financial dealings, but in many instances, the city has been unable to meet benchmarks set by the state.

Dillon says part of the problem is that the state has been running a deficit since 2005, and borrowing more money to cover it up.

“The political will has often not been there to make the necessary and bold fiscal reforms. … Without a doubt we need the support and accountability that a State of Michigan partnership offers. We cannot address our legacy obligations alone” said Gary Brown, City Council president pro-tem.

 

 

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2 comments

  1. Less we forget, we are American first. If it were the other way around, there wouldn’t be a black president to blame or a black mayor to hold responsible for what amounts to s blatant disregard for the less fortunate in our society. Once the working class, now the poverty stricken, sucker of the economy. Aid is supposed to be temporary. Unless you are diabled, then its called disibility. Blame the appropriate parties for the inappropriate BS. Don’t blanket blame or stereotype.

  2. James,

    Your comment is very enlightening to me because I live in Canada.

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