Municipal turmoil is a national issue, and one of the most troubled cities in the nation is Detroit. There, the Mayor’s State of the City Address represents his last “pitch” to his City and State to avoid a state-takeover of city finances and operations. The Governor reportedly has already compiled a list of candidates to act as the City’s emergency financial manager.
The City, which once was one of the most populace in the country, has suffered a flight of residents as they seek jobs, schools and safer neighborhoods. The population is now just 700,000 and the lack of taxpayers has contributed to a ballooning deficit. In 2011, the city had $196.6 million in debt; in 2012, that had exploded to $326.6 million.
Should an emergency financial manager be appointed, he or she would have the authority to overhaul city finances and even recommend bankruptcy.
The City has roughly $8.2 billion in total indebtedness.
Read the full story at Reuters.com