The economy may be getting better on some levels. On other levels though, the impact of damage is clear. Case in point, Detroit may be in deep debt by June, despite a lot of positive economic growth. The finances of Detroit could get handed over to outsiders in April according to the New York Times.
The possibility that an outside manager could come in — one who would have broader than ever powers under a rewritten state law — has stirred new concerns among financial ratings agencies and business leaders who have fresh investments in the city. City government, meanwhile, is finding itself forced to re-examine services it provides — including buses, health care and street lighting — and shed what it can no longer afford.
This does not sit well with a lot of folks in Detroit. Clearly this shift in economic control could have a national ripple effect.
The state’s moves have set off an uproar. Under Michigan law, a formal review must precede a state finding that a city’s financial circumstances are so dire as to require an outside manager to take over — and many here view that as the state’s ultimate intent. Mr. Bing, a Democrat, and even groups he has sparred with — the City Council and leaders of the city’s 48 unions, whose contracts are the target of much of the cuts — have pushed back, as have residents. The refrain: Detroiters can take care of Detroit just fine, thanks.
What do you think? If a city or a state cannot manage its money right who should have control over it? Post what you believe is best below.
Read the full story in the New York Times.