Detroit bankruptcy looms without drastic change
Mayor Dave Bing and the City Council must reduce the size of government and slash the city's budget deficit to stave off bankruptcy or state receivership, according to a report released Monday.
Detroit — Mayor Dave Bing and the City Council must reduce the size of government and slash the city’s budget deficit to stave off bankruptcy or state receivership, according to a report released Monday.
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.”
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