Detroit is facing bankruptcy, as it faces a $446million deficit on a $1.6billion budget.
From The Detroit News:
Without draconian cuts and changes aimed at downsizing government, the city could end up with a "possible" general fund deficit between $446 million and $466 million to its $1.6 billion budget.
"Detroit city government must be restructured," according to the report from the Citizens Research Council of Michigan, a nonprofit that has studied Detroit finances for decades. "The new structure must reflect both the reduced tax base and the limited ability of state government to provide shared revenues."The situation is tragic. Families have left the city in droves, and of remaining households, single mothers are bearing a crushing burden:
The city has very little options remaining. It's largest private sector employers property values have plummeted, and the associated taxes paid on those lower values.
The entire 74page report by the Citizens Research Council of Michigan should be mandatory reading for city officials across the country.
Fiscal Condition of the City of Detroit