The Problem The city of Detroit is running out of money. This problem has been building for decades and has reached the point where immediate action is necessary just to keep the city running.
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Detroit's population history
How We Got Here
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Detroit's Financial Crisis What you need to know
Overestimated its revenue
2ODMSLNQD than it takes in
The Next Steps to Fix the Problem 3GDBHSXMDDCRSNRNKUDSGHRƥM@MBH@KDLDQFDMBX@MCƥMCMDV@MCADSSDQV@XRSNLDDSSGDMDDCRNEHSRQDRHCDMSR 3GDMDWSRSDOR@QDSN
Fix the short-term cash crisis.
Adjustments need to be made to ensure the city is not spending more than it receives.
Ţ &NUDQMNQƥMCRMN DLDQFDMBXDWHRSR@MC takes no action.
Ţ ,@XNQ@MC"HSX"NTMBHK continue to manage BHSXƥM@MBDR Ţ Charter provisions remain impediment to PTHBJSTQM@QNTMC Ţ Decisions take months to approve due to bureaucratic structure.
Ţ &NUDQMNQ@MC1DUHDV Team reach new consent agreement with the City.
Ţ ,@XNQ@MC"HSX"NTMBHK continue to manage ATCFDSVHSGFTHCDKHMDR from agreement.
Ţ Charter provisions remain impediment to PTHBJSTQM@QNTMC Ţ %HM@MBH@KCDBHRHNMR continue to be made based on political reasoning rather than ƥM@MBH@KRNTMCMDRR
Ţ Governor declares ƥM@MBH@KDLDQFDMBX@MC @M$%,HR@OONHMSDC Ţ $%,CDUDKNOR@ BNLOQDGDMRHUDƥM@MBH@K and operating plan to solve chronic budget OQNAKDLRVHSGHMOTS EQNL,@XNQ@MC"HSX Council.
Ţ %HM@MBH@KCDBHRHNMR based on objective ƥM@MBH@KC@S@ Ţ Actions to enact reforms begin immediately.
Deal with long-term obligations.
Detroit needs to address ballooning BNRSRVGHBG@CCTOSNʙAHKKHNM to pay for pensions and retiree health care.
Options Available to Governor
Continue Status Quo New Consent Agreement
Emergency Financial Manager (EFM)
Put a system in place to responsibly PDQDJHLWVEXGJHWVRWKHVHƲQDQFLDO issues don't happen again.
Once the structural problem is ƥWDCSGDBHSXŗRDMDQFXB@MDMRTQD focus on better services and growth.
The Goal 3NRNKUDSGDBGQNMHBATCFDSCDƥBHSRSG@SG@UDJDOS#DSQNHSEQNLHMUDRSHMF HMHSRONKHBD@MCƥQDOTAKHBO@QJR@MCOK@XFQNTMCRQN@CRKHFGSHMF@MC RHCDV@KJRş@KKSGDSGHMFRSG@SL@JD@RSQNMFR@EDPT@KHSXNEKHED...