City Of Detroit Faces State Takeover
How broke is the City of Detroit? So broke that the State of Michigan may declare a financial takeover.
An expert panel concluded on Tuesday that Detroit faces a fiscal emergency in a city plagued by “operational dysfunction,” leaving Governor Rick Snyder with a controversial decision of whether to declare a financial takeover by the state.
If Snyder does decide to appoint an emergency financial manager for Detroit, that person could decide that the city’s only course for survival would be a bankruptcy filing, the most feared and radical action that could be taken.
Michigan’s treasurer, Andy Dillon, who was part of the six-member review team, said he did not expect the city, General Motors’ home town, to be forced into bankruptcy.
The review team appointed by Snyder said Detroit, which has been hemorrhaging cash amid a declining population and a decimated economy, has not made the financial decisions that will put the city on a path to recovery.
Years of single party rule by Democrats has it’s consequences.